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TradingOnline4u.com Strategies for Stocks, Shares & Forex |
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The concept of Currency has been around for literally thousands of years. Whilst the types of currency have evolved over millennia, the basic use has pretty much stayed the same: A medium of exhange, with which to barter for services and goods. Currency futures have been traded all around the world for centuries as well. Similar to insurance, currency futures are used to shift the risk from the buyers and sellers, to the speculators. Speculators have always been the merchant bankers of necessity. They provide the capital that both the buyers and the sellers need in order to make futures an effective risk management tool. The buyers and the sellers of currencies could never afford to make a mistake if they didn’t have futures to back up their trading decisions. Currencies have been traded in two forms simultaneously, “over-the-counter” (OTC) cash trading and exchange-traded currency futures and options. Although forex trading, (both OTC or futures) is very exciting, it demands a circumspect approach. Speculation means engaging in high-risk business transactions, in order to yield high returns. This should not be viewed as synonymous of gambling: Gambling relies on random chance and blind luck - speculation does not. Forex is based on the currencies of countries, with very real issues of trade surpluses or deficits, interest rate changes, and economic stability or instability. Forex speculators must research, analyse, strategise and plan if they ever hope to understand what is happening on such large macroeconomic scales. Forex speculation is not for everyone. It is a fast moving market that operates 24 hours a day, six days a week. You can rake in losses just as fast as you can chalk up profits. This aspect of forex trading can be very stressful and taxing on the psyche. Being in a position to trade whenever you want brings its own hazards. As a forex trader, you have to monitor your mindset and your level of alertness on a constant basis as these could impact your sense of judgement. Trading when you are stressed, emotional or tired might result in costly mistakes. These are the complexities of forex trading that the Forex Trading Machine seeks to remove from the forex trader. The Forex Trading Machine website explains that the author of the book, ‘Forex Trading Machine’, has come up with his price driven forex trading (PDFT) method of trading… a method that takes next to no time to implement and delivers immediate results. The author explains that his unique method will enable you to do away with the usual tools of the trade: moving averages, pivot points, Fibonacci trend lines and so forth. He goes on to say that PDFT simply involves using the price of the currency and a time element, to make trading decisions. Much better, wouldn’t you say? The website describes three different methods: one is essentially swing trading and the other two, target day trading. As it is described, this trading system appears to be completely mechanical. Thus, you really do have a forex trading machine as your tool. No more fatigue factor. No more detailed economic analysis. No more long range forecasting. Just pure mechanical trading (well… and some technical analysis too). Not bad, really. Especially since it works.
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