Forex Expert Advisors - The Forex Robot Trader Survival Guide

The forex market offers a lot of opportunities for investors and traders to make maximum profits on their investments. However, there have been plenty of individuals who have been too eager to jump into the business without knowing the most common pitfalls, resulting in massive losses. If you are starting out a career in forex trading, read on to find out the mistakes that you need to avoid in order to become successful in your trades.

• Trading as per governing trends: markets which follow a particular trend present the greatest income earning prospect as it is going in one direction; we can, thus, use this information to our advantage by entering the market in the direction of the trend.

More and more people are jumping on the bandwagon that is the paper trade and while you may know the potential of the market to make investors good money, you might know why exactly. The Forex trade has some features that make it a viable option for people with the right combination of skill sets and aptitudes to truly excel in the market and make some decent money.

If you feel that the market is going to go down greatly then you would buy a put option. Likewise, if you think that the market is trending up, you would then buy a call option. The buyer of the put option pays a fee (called a premium) for this right as the buyer expects the price of the chosen currency pair to drop in the future while the seller expects that it will not.

Why trade Forex online? There are a number of reasons and it all depends on what your personal objectives are. Some of the reasons why it's so popular is because there are no clients or suppliers to deal with and no customers to worry about. It's just you, your computer (or mobile device), your online broker and the market itself. To be honest, when I trade Forex online the toughest aspect to manage is actually myself. My emotions, behaviors and greed are at times much harder to control than any client or customer. Obviously, trading is a skill that develops over time. As soon as you master your own emotions and become disciplined, it's very easy to make money and become a very successful.

For example, with EUR/USD at 1.2723 and leverage at 100:1, each PIP amounts around $7.86. At 200:1 leverage, it could double to $15.72. For traders with different gearing, a 100 PIP move means entirely different things to their account equity.

When first starting out with Forex online, it's important to choose a broker that allows 'Options trading' (this will be explained later). In terms of leverage, choose a broker that allows 50x to 100x leverage, which is enough in my opinion. 200x leverage is pushing it but you can choose it if you're happy with risking that much of your capital but I don't recommend any higher. The reason why many people choose more than 200x leverage is because they are specifically day-trading. This is where they watch chart movements every single second and buy/sell every few minutes. That's not my style, I'm more of a mid-to-long term trader than a short term day-trader. I personally don't like being glued to the screen and trading Forex online like a robot. There are software programs that can do that much more efficiently than any mere person can.