Currency Forex Market : Currency Pairs

It is important for any forex trader to know the best pairs to trade in the currency forex market, so which are the best currency pairs? The answer depends on two factors.

1. Liquidity

For a beginner learning to trade on the live markets or with a demo account, the best forex currencies to get involved with are the ones that have highest liquidity. That means the pairs on which most money is traded each day.

There are several reasons for this. One is that the high liquidity means that it is almost certain to get a trade matched. So if you place a stop, for example, it is more likely to be triggered at the exact point that you set, without any slippage. Of course, this depends on your broker too.

The second big reason for choosing the most active currency pairs for your trading is that usually they will have a lower spread. This is the broker’s profit. A lot of activity in the market naturally creates a narrow spread. At the same time, competition for trades in the most popular pairs is intense between the brokers, so you can take advantage of that by choosing those pairs.

So which are the most heavily traded pairs in the currency forex market? Of course they all involve the US dollar, which is the biggest traded currency in this great forex world. Second is the euro, so the top forex currency pair is EUR/USD. After that comes the Japanese Yen in the pair USD/JPY, and then GBP/USD, the British pound against the Dollar. Interestingly the GBP/USD is known as cable because in the early days of fx trading telegrams or cables were used to pass instructions to your trading broker.

2. Systems

There is a second very important factor to take into account when considering which currency pair to trade, and that is the system that you are using. Many systems are designed for particular pairs and will not necessarily work for other pairs. This might seem strange until you realize that the economic factors affecting the world’s nations vary from country to country. For example, some countries are heavily dependent upon one particular export or trade. This means that their currency will behave differently from others because it is linked to the price of one commodity or the conditions required for something like tourism, manufacturing or agriculture will have to be favorable for the currency to perform well.

You can of course invest in an automated forex trading system or robot, and these are usually designed to work with specific currency pairs. For example FAP Turbo works with two cross pairs, not involving the US dollar. You could not set that robot to make money with any pair that you chose. In fact the robot is no different from any other system that you might find in the market except that it is automated. If you choose a forex robot the manual will explain which are the best currency pairs to use that robot in the currency forex market and how to set the parameters for each of these.

INTERVIEW WITH THE FAMOUS TRADER ADRIAN SHIROMA KNOWN AS ¨The account duplicator¨

Hello, for the onlookers of the FOREX TRADING I leave the interview to the famous trader of Japanese origin Adrian Shiroma who this causing commotion with their techniques. 

 

Famous Traders: Adrian Shiroma
Known as ¨the account duplicator¨ but the one prefers them to call it ¨the chinese¨ as they call him their friends. 

 

With only 27 years it is one of the Hispanic-Japanese promises of the forex trading of this new decade. He doesn't like ¨the duplicator¨ to call him but the certain thing is that it is able to bend the balance of a forex account with easiness. 

 

In the phone interview Adrian could be many things about their career and their life

 

How so certain it is that that you duplicate the accounts? 

 

Adrian Shiroma: I don't duplicate them, I triplicate them (laughs), I think that it is exaggerated because not all the accounts can be duplicated easily, it depends on several things: the size of the account, available markets, for example: small accounts cannot duplicate them easy, but if to give him a good profit, but the  big accounts are easy to manage.  

 

Adrian are you  consents of your fame?, do you think that it is exaggerated or that you really deserve it? 

 

Adrian Shiroma: The good things come alone when make all with love, then people request me advice, they puts me on approval and now my own clients are those that have given me that fame. But I don't believe it to me, I know  that people exist better than me.

 

How did you begin in this?  

Adrian Shiroma: Surprisingly I began with a documentary that I saw myself when I has 18 years that called   ¨The divine Proportion¨, spoke on the I number golden and the persistence of this in all the proportions that are in the universe. We find it in our body, in you hoist them,  plants, galaxies and recently I discovered that the physical beauty is increased to measure that its face completes these proportions.  

 

Interesting What is the relationship this has with the forex graphs? 

Adrian Shiroma: All, what shot my interest toward the markets was the mention of these in the documentary. Notice that this proportion finds it in the setbacks, arches and fibonacci fans, it fits perfectly in any graph of the market, it is a divine constant of the nature. Always from boy. I foresaw when an event will repeat. And when seeing the news it confirmed it to me to myself so I always had the restlessness of discovering the because of these sensations. Then I discovered that if we can predict a certain event we could also use it to predict the following movement of a forex graph and it was this way, those they were my beginnings.

 

Do you work especially for some company? 

 

Adrian Shiroma: I manage accounts for a lot of people, they are those that call me. I manages some private funds, and I now am managing the account of a brazil celebrity.

 

 

Which indicators your usually uses to open your operations?

 

Adrian Shiroma: My trading style is tendential is based on the proportions Fibonacci by means of one formulates that I discover  and that I apply in my EA which I have programmed for my own traindg. I Usually trading to 4 hours without indicators, In days of high volatileness only me duplicate the hunger (laughter), I like when the market this anxious one, I like when the market is renewed, this it is my inspiration to trade. I avoid to watch the balance of the account but until to have finalized the day, I watch soon it and I say - ohhh, I believe that that is a lot of money. (laughter).

 

What is your secret for your trading operations?

Adrian Shiroma: It is a secret, I only apply it in my operations and the programming of my EA like the AureoFX, at the moment I don't have thought to reveal it but I am for sure many other traders has already given with her 

 

What do you say of the use of automatic systems in the trading of FOREX? 

 

Adrian Shiroma: There is something that I have very clear: 97% of EAs are disposable even those that they make you win a lot, these usually take off in fact all that they give you the following week . Only 3% of the EA are good but they are not commercial, they use them the banks, brokers and corporations. 

 

Do you think that people give a wrong use to the EAs? 

 

Adrian Shiroma: Definitively yes, I have done systems with regular results that could give stable profit to their users but the problem this in that people don't know how to use them  neither to configure. People people want to see immediate results and they forget that the FOREX is of patience market and in occasions it becomes rebellious and it doesn't want to have you close. One can say that the FOREX has its temperament.  To enter and to leave is two very important strategic movements of survival with discipline. The common error it is to seek their EAs to give him such an infinite money as their ambition without having an investment plan. 

 

Do recommend us especially some EAs? 

 

Adrian Shiroma: I recommend that you learn how to trade better than your own EA, it is curious that when you arrives at that level, people it is already it consents that it is useless to use EA  because their abilities overcome them, then the automatic systems become something of ¨elite¨ then for those advanced traders that want to program their strategies in one to reduce their work load, they are themselves those that use them and they are not in sale. Something exists very curious: if a system of 3% put on in hands of an operator average he would have lost short term because he doesn't know how to use it or worse even: he believes to know but that the author and it modifies the parameters of the system to try to get but in less time. 

 

Do you operate your accounts manually or with EA? 

Adrian Shiroma: I have a work method that always works me, a EA always needed of the support of the trader and the robot's trader, I believe that my systems and I make a perfect team and we supplement ourselves as couple. 

 

Which the instructions are to use an EA correctly?

Adrian Shiroma: The good EAs usually indicate you so that markets were created, it cheats them frames and I number of lots vs balance in account. The 2 errors but common they are: to have it ignition the whole day and to alter the parameters especially to increase the lots after seeing earnings what places the account in constant danger. Personally  I think that all commercial EAs are totally crap. 

 

What you recommend to recover a negative account?

Adrian Shiroma: The first thing is to change the trader, if he is the same owner the one that operates her this it will be bound sentimentally to her and for but that wants it it didn't take a positive one. If it is also a third. Alone a good trader with a good money management can recover the account little by little before it is late. 

 

Why is it said that the brokers operates vs the user? 

Adrian Shiroma: Not only it is said, it is a fact that in all the contracts of account opening clauses exist in those that it is indicated that the broker operates in our against, in other words: that if we win in an operation another person that should lose in that same operation should exist so that they can pay us. This had untied many bad experts on the part of some clients that sign this clause without reading it in the one that the broker the right is reserved to pay. However it is not very common to see cases of unpaid in grateful brokers. 

 

 

What advice do you give to those traders that are beginning in this world of the FOREX? 

 

Adrian Shiroma: The trading is an art and as all art it costs to be developed, the virtuous musician didn't become expert of one year for the other one. The beginner should burn so many demo accounts it can burn rehearsing own strategies and learned to prove which is the one that but it is coupled to his trading style and personality. 

 

Do you believe that the trading is for everybody? 

 

Adrian Shiroma: That is as if you asked me if we all have talent to be medical, the answer is not, our talents are some (we are not good in everything), each person should discover for what is good and that is achieved rehearsing, the experience will give you the answer, if  you believe that you have talent for this studying and practicing found the answer. 

 

 

How can they contact with you the readers that are interested in a account managed? 

 

Adrian Shiroma: Write to the mail: adrianshiroma@hotmail.com or to visit my blog: http://adrianshiroma.blogspot.com cannot sometimes respond all the emails but have for sure that I read them all. 

 

Thanks to Adrian Shiroma to grant us this phone interview and we hope to continue counting on you, learning of you in the future, many successes 

 

Adrian Shiroma: Thank you for to you for your call and to keep me in mind. 

 

Source: The Economist

Forex Automated Trading Systems For New Foreign Exchange Traders

Automated forex trading systems can seem like the perfect answer for anybody who wants to start making money with forex or currency trading but does not know anything about it. Forex trading can be a very lucrative way of making money, but it is also extremely risky, like any other form of financial speculation. In order to trade successfully on your own account, you need a lot of skill and training. All of this takes time and costs money. If you are a beginner, you could not expect to start today, be trading live and actually make any money using a manual system.

 However,automated forex trading systems or forex robots seem to cut the learning curve right down to  zero. They will apply a system for you to the letter every time. You just need to leave the software running on your computer, connected to the internet over broadband, and they will open and close trades for you according to whatever settings they are given.

They also have the advantage that you can set them and forget them. It is easy when you are starting out as a forex trader to become hooked on the market to the extent that you can hardly step away from the computer. You do not want to eat or sleep in case something happens in that time. Of course this leads to burn out very quickly. Experienced forex traders know how important it is to have a life away from the computer. Using a forex robot can help you achieve this from the start.

However, there are a few things you should know before you switch on your robot for the first time. First, there is a wide choice of robots available. Some are more effective than others. Check reviews and user feedback to be sure that you are buying one of the best.

Second, you will need to understand at least the basic terminology of forex trading, and spend some time mastering the settings, in order to optimize the robot so that you have the best chance of success. Do not become frustrated if this takes you a day or two. You then need to test it out in demo mode to be sure that everything is set up correctly. If you go live too soon, the results may be surprising, and not in a good way.

Third, you must accept that you will not see winning trades every time. There will be some losses. Overall if the robot is working well you should make a profit, but at times, the losses could exceed the gains for a while. Because of this, it is important that you do not risk too much of your money on each trade. Never risk more than 5% of your total funds on one trade, and if you want to be safer, aim for 1% to 2%. Set stop losses so that the trade will automatically close if the price goes the wrong way. This controls your risk.

One of the biggest benefits of using a forex robot is that it takes the stress out of trading. Many beginners do not realize how important this is. It sounds like just a feel good thing, but it is not. Stress affects us physically. It causes us to make snap decisions, often diverting us away from a tried and true system into emotional trading that will end up in disaster. Forex automated forex trading will remove most possibilities of this happening to you.

3 Steps to Better Trading

Most new traders approach the market in the wrong way. They some how get the idea that being a trader is all about finding the right method. So they go on an expedition in search for that perfect combination of indicators, and it rarely ends well.

The truth is becoming a trader has very little to do with the system you use.

I have no real trading system. I have a trading method which is the composition of a few simple concepts. I believe a system sets out rules and limitations. A method, on the other hand, gives you the basic tools but the implementation is up to you.

The problem with trading systems is they are too rigid for a changing market so they do not work. The problem with a trading method is that you have to have the right mindset to properly implement the basic concepts of the method.

So how do you develop the right mindset?

Well I’ll tell you how I did it. I started off small. Instead of complicating trading I simplified it. From there, I was able to learn how to become consistently profitable. Here’s how I did it;

1. I Picked A Timeframe

The first step was to pick a single time frame. By this time, I had been trading Forex for about 6 months so I knew my way around the markets. I quickly learned that smaller time frame charts are hard to analyse because they are erratic and prone to random movements.

I decided to jump up to the 4 hour charts and I haven’t looked back since. I strongly believe that every trader should trade on hourly charts or above.

The point is not so much what timeframe I traded it’s the fact that I picked a single time frame, and stuck to it. To me it was all about simplifying trading so I could more efficiently learn to trade.

So looking at a single timeframe had several benefits;

1. Allowed me to concentrate on learning one time frame, therefore removing a lot of the confusion you can have when juggling multiple time frames.
2. Gave me less charts to look at and allowed me to concentrate more on analysing a single currency pair.
3. Stopped me from over analysing my pair. Looking at too many time frames gave me conflicting signals.

Overall having a single time frame keeps it simple.

2. I Picked a Pair

This was exactly the same concept as picking a single timeframe. It just simplified my trading concentrating only on a single pair. When you’re a professional trader making tons of profit you can trade as many pairs as you want. However as you’re learning it’s best to concentrate on one pair. Here’s why:

1. Each Pair is Unique: Trading a single pair allows you to learn how that pair breaths. You will know a lot about a single pair instead of knowing a little about 5 pairs.
2. Speeds up Learning: Trading a single pair with a single time frame gives you only 1 chart to look at. This allows you to concentrate all your analysis on a single pair.

The idea behind picking a single pair to trade is a simple one. It is all about simplifying trading so you can learn to become a consistently profitable trader.

3. I Set My Targets

This was absolutely essential. I do not mean I set my targets on a per trade basis. I mean I set myself weekly and monthly targets. I have discussed in this previous article how important discipline is. As a newbie, what I needed above all else was discipline and the way I became disciplined was by setting targets.

I looked at my method and I decided it was capable of generating around 50-70 pips per trade, giving me on average two trades per week. So I set my weekly pip goal to 100 pips. When I meet my goal I stopped trading for the week.

Tackling Your Flaws and Becoming a Better Trader

What are your flaws?

 

 

I have quite a few flaws myself.

1. Easily distracted
2. Lack direction
3. Vengeful and quick to anger

You would think these three traits would take a massive toll on my trading, but they don’t. They don’t because I do not let them. I put a lot of effort into not letting my flaws ruin my trading. I am going to be honest with you. This was an immense task for me and had I not tackled it I would not have been a successful trader. In this article, I am going to show you how I conquered my flaws.

All of us have flaws that can interfere with the success of our trading. It is unfortunate but it is a fact. Successful traders are not people who were born to be traders, they are normal people like you and me. They have their flaws and they battle them, in order to keep trading successfully. One of the many things that sets a successful trader apart from an unsuccessful trader is successful traders recognise their own flaws.

Do you know your flaws?

If you don’t you need to figure them out. It is not a hard job. You should know yourself well enough to know your flaws. Maybe you’re a little too vengeful and take revenge trades. Maybe you’re too fearful and you are afraid to enter the markets. Whatever your flaws are, take some time now to figure them out in your head.

Got them? Good!

Now it’s time to get a piece of paper (or open up your word processor) and write them down. Start by just writing in one or two words what your flaws are. Here is an example of my list:

1. Easily distracted
2. Lack direction
3. Vengeful and quick to anger

Once you have done that it is time to expand on the flaws. Just write in a sentence or two how the flaws effect your trading. Here is an example of my list:

1. Easily distracted: I tend to start playing PC games or watching movies and miss trades.

2. Lack direction: Some weeks I trade but some weeks I just can’t be bothered and I spend the week lazing about. When this happens, for too many weeks, I lose my edge and it takes time to get back into the flow of trading.

3. Quick to anger and vengeful: When a trade doesn’t go my way I can get pretty angry and take revenge trades. These trades more than often do not work out and affect my account balance.

Ok now your flaws are all written down and you can see how they affect your trading. For me, this was a real eye opener. When I first had this list in front of me, a few years ago, I realized how much these things were actually impacting my trading.

The next step is for you to write down a solution to each of these flaws. Now I can’t help you with the solution to your flaws, only you can know that. However, I can show you an example of mine:

1. Easily distracted: I tend to start playing PC games or watching movies and miss trades.
Solution: Get rid of my PC games for the time being and stop downloading movies.

2. Lack direction: Some weeks I trade but some weeks I just can’t be bothered and I spend the week lazing about. When this happens, for too many weeks, I lose my edge and it takes time to get back into the flow of trading.
Solution: Write out a trading plan which sets out weekly and monthly targets. Exercise some discipline and stick to my plan.

3. Quick to anger and vengeful: When a trade doesn’t go my way I can get pretty angry and take revenge trades. These trades, more than often, do not work out and affect my account balance.
Solution: Write out a trading plan which sets out the type of trades I take. Set out rules to govern my trading. When I lose a trade I need to step away from the computer and have a 5 minute break. That way I can come back with a clear mind.

The next step is to not just forget about this list but to read it weekly, and put those solutions into action. Good traders know their weaknesses. So if you want to succeed, make it easier on yourself and recognise your flaws.