Forex Trading Machine Book Review – Trading Like A Robot

The ebook "Forex Trading Machine" is aptly named. The author, Avi Frister, has taken a radical approach to the forex market, bypassing technical and fundamental indicators, the lifeline for many traders, and devised a system that is purely mechanical. If you can trade like a robot his system promises dependable, consistent profits over time.

This ebook falls naturally into two parts. Chapters one to six cover forex basics including an explanation of currency quotes, pips, margins, daily ranges, technical and fundamental analysis.

Of particular importance are chapters five and six dealing with the psychology of trading and money management.

Why A High Drop Out Rate?

A very important point is made on page 74. After referring to the often quoted statistical that 95% of traders fail unexpectedly and go broke, the author emphasizes that this is not due to the absence of a sound trading system, or special forex trading strategy .

Discipline is the key factor, control over emotion. Fear and greed are the two elements that destroy so many traders. To quote Avi Frister: "Most people get into this venture with the hopes of getting rich quick.

Here is the desirability of a forex trading strategy that is purely mechanical, without the need of interpretation or judgment calls on what is happening in the market at any given time. If an individual can develop the discipline to simply follow this mechanical system, basically trading like a robot, consistent profits and an ever growing account will be the result according to "Forex Trading Machine."

From what I have considered in this ebook and put into practice myself, I am inclined to agree.

Three Strategies

Three specific mechanical strategies are outlined. One requires a stop loss of over 50 pips which may not suit everyone considering the amount of equity needed for such a trade. These setups come up just a handful of times a month but the profit targets are usually around 100 pips.

The second strategy will suit many with a stop loss of 20 pips and a profit target of 30-40 pips. This particular setup occurs frequently, perhaps more than once a day on some currency pairs.

The third strategy requires a stop loss of just 15 pips with a profit target between 20 and 40 pips.

In each case, there are minimal considerations and a trader has to just follow a very specific set of instructions, enter the trade, and forget about it. Check it some time later and if it is still running, make a decision on whether to exit or let it run.

The author points out in the introduction to this ebook that the information and trading strategies explained will suit both the beginner and the advanced trader. Certainly the beginner will find the techniques relatively simple and easy to implement. If they can adopt the robot approach and just 'connect the dots' there is a high probability they will increase profits consistently over time.

It Depends On Your Mindset

For the advanced trader I am not so sure. It will depend on the mind set. Some advanced traders may not be able to shut off their natural tendency to use technical or fundamental analysis. This will most certainly get in the way and cause problems if they are using the mechanical approach.

Advanced traders who have the discipline to pigeon-hole their various strategies will do well with this system I believe. They may have some trades running using their technical or fundamental indicators and when they see the specific setups Avi Frister outlines, they may choose to trade in a separate account purely using the mechanical method.

The advantage of this approach is a spreading of the risk factor. Using a variety of trading strategies, including technical analysis and on other occasions a strictly mechanical approach, will provide a strong trading foundation.

"The Forex Trading Machine" adds another dimension to the aggressive trader's tool kit.

Title: Forex Trading Machine
Author: Avi Frister
Format: Digital – PDF

Source by Michael A Jones

Forex Trading – 5 Traits of the Millionaire Traders

Anyone can learn forex trading but what separates the true pros the millionaire traders from the rest? This is what we are going to discuss in this article and it's nothing to do with their forex trading system, it's to do with their mindset.

Let's look at the 5 hits that the millionaire traders have and if you can acquire them to, you can enjoy spectacular currency trading success.

1. You are Responsible

This is an obvious one – no trader ever got rich following anyone else. If you think you can follow one of the numerous forex trading systems sold on the net with simulated track records then your wrong.

To enjoy currency trading success you need to learn skills, get the right forex education and that's all free on the net for you to learn. There are no secrets to successful currency trading, everyone has access to the knowledge – the key is in how you apply it.

You're on your own when it comes to changing your financial future but that's the best way and the only way.

2. Isolate Yourself

Your trades are your own so do not give or seek advice. In many instances your trades will be opposed to the losing majority and if you talk to them or seek advice, your emotions will get involved and you will lose.

It's natural to want to be with the majority and not be an outcast in life but in forex trading it's a recipe for disaster.

3. Patience

All the great traders are patient and only trade when the high odd trades present themselves. Most traders do not think this way they want to trade all the time and day trade and lose. The biggest myth of currency trading is you should always be trading and opportunities present themselves every day – they do not.

4. Discipline

How many times have you heard that discipline is the most important trait for any trader to possess? It's true. Discipline is not easy and only comes from self education and confidence in what you are doing.

In effect you have to construct your own rules to live by in forex trading as the forex market has not set rules and is total anarchy.

Think it's easy?

Then you need to think again, it's anything but, following a currency trading system and executing it through periods of losses. Discipline comes from within – and remember that if you can not execute your trading system with discipline, you do not have one!

5. Know your Edge

What is your trading edge? Why should you succeed when 95% fail? Ask most traders this question and you get a blank look and these traders are losers.

If you trade you must have an edge and you must know what it is and have confidence in it to lead you to currency trading success. Every successful trader's edge is different but they know what it is and you must too.

The really successful forex traders have the mindset to succeed and a winning mentality that includes the above visits.

They know what their doing and why their forex trading strategy works. They do not blame the markets, bad luck or the news if they lose. They know success rests on their understanding and their ability to apply a simple forex method with discipline.

If you can acquire the right mindset and that includes the character exercises above, then you can enjoy currency trading success.

Source by Kelly Price