Forex Morning Trade - Is It A Scam?

The trouble with the forex trading industry is that there are a lot of dodgy and deceptive companies out there who sell a lot of poor quality products. Therefore whenever a new product is released, people often go online and try and find out whether product X is a scam or not.

So with regards to Forex Morning Trade, is this product a scam or is it completely legit?

Well I am pleased to say that Forex Morning Trade is NOT a scam. I have purchased it myself and it is actually a very profitable system. It trades just the one pair - the GBP/USD pair - and looks for possible breakouts during the overnight trading session, just before the London and European markets open.

It is based on probabilities, and generating more winning trades than losing trades because the profit targets and stop loss levels are roughly the same. On the whole it generally manages to achieve this goal as well, with profit targets for the week often totalling around 40 or 80 points in total.

There are losses on some days, and some days there are no trades at all because the trading criteria are not net. However it does tend to generate fairly consistent profits overall, and has helped people make money from forex trading since it was first released.

The best aspect of the Forex Morning Trade system is the support you get when you purchase it. For example there is a forum where other users can chat and exchange ideas, and if you have any questions you can contact the developer of the system, Mark Fric, and he will usually give you a prompt response.

So if you take into consideration the fact that he often makes a few changes to this system to account for changing market conditions, this is definitely one of the better forex trading systems on the market right now.

Why Do Many Forex Professionals Avoid Using Forex Robots?

You will probably have noticed that there are hundreds of forex robots (or expert advisors as they are often known) being sold online. However if you look at the kind of people that buy these robots, they are not the professional traders. They are usually people new to forex trading who are looking for an automated way of generating profits from the currency markets.

So why do the professional traders avoid using these robots?

Well the answer is simply because you cannot rely on them to make money with any great confidence. If many of them were as successful as they made out to be on their sales page, then all the pro traders and all the major banks would be using them to generate huge returns.

Of course you are not going to get a robot like this for $97, which is what many of them retail at, which is why many experienced traders stay well clear of them. Instead it is the people new to currency trading that often snap them up in their droves because they mistakenly believe the hype, and think that they are going to get rich by using one of these expert advisors.

The reality is that the only real way of making money is by developing your own system and trading the markets yourself. You also have the luxury of being able to adapt your system should market conditions change. With forex robots it is often the case that they generate decent profits for a while, but as soon as market conditions change slightly, the losses mount up very quickly because they are inflexible.

I'm sure there are some profitable robots out there, but it is highly unlikely that the really profitable ones would be sold to the general public anyway. They would probably be sold to a major bank or financial institution for a six or seven figure sum instead.

So the overriding message is that you should be very wary about rushing out to buy one of the many different forex robots that you see being promoted online. Many seasoned traders have learnt to stay well clear of them because they are often unreliable and will nearly always lose money at some point. You are much better off developing your own system because then you only have yourself to blame should you incur any losses.

Why Traders And Investors In The UK Are Very Lucky

There are lots of forex traders and stock market investors in the UK and it has to be said that these people are very lucky because they have an advantage over people from many other countries.

Let's start with forex traders first of all because it is often said that the most profitable periods of the day are the opening few hours of the London and European trading sessions. So this is a really convenient time of the day for UK traders because it is right at the start of the day.

If you are based in the US, however, this would be the middle of the night for you. Therefore you automatically miss out on these highly profitable trading sessions unless you are prepared to stay up all night.

Stock market investors are also very fortunate because they can make full use of spread betting facilities to go short on various stocks if they want to. The profits made from this form of speculation are also tax-free at the time of writing. Spread betting is prohibited in certain countries due to strict gambling laws so these people do not have this option available to them.

Of course it is still possible to go short in many cases by using options. However these instruments are often quite complex and can be quite hard to understand, particularly when compared to spread betting.

Forex traders in the UK can also open an account with a spread betting firm and trade the forex markets this way instead of using a traditional forex broker. In fact many traders prefer trading this way because they avoid paying tax on any profits that they make.

So the point is that people in the United Kingdom are very fortunate in many ways because they can trade forex at convenient times of the day, and they can short shares and trade various instruments tax-free.

The Best Websites For People To Learn Forex Trading

This is my first post on this new blog and I just want to talk about how you can learn to trade forex. There are lots of ways you can go about this. You can find a mentor, ie a professional trader who can teach you how they trade, you can read books or you can buy a few trading courses. However in this day and age most people like to visit websites because it is convenient, plus much of the information is absolutely free.

So which websites should you visit?

Well there are two good sites that I can particularly recommend. The first is a site called Babypips. This site is a complete resource for anyone wanting to learn the basics of forex trading because they start right at the beginning and walk you through step by step.

You will learn how the currency markets actually work and what causes the markets to move, and you will also other basics such as how you can sign up to a broker and start placing trades, and what the various terminology means.

You will then have the option to progress to different levels and learn about the more advanced subjects such as technical analysis (using charts to find trading set-ups), and how to spot the various different trading patterns.

It really is a complete education and as I've already mentioned, this information is completely free.

The second website I like is Forex Factory. This is primarily a forex trading forum where members can chat and exchange tips and strategies with each other all through the day.

There are various different sub-forums devoted to subjects such as brokers, systems and live trading thoughts. There is also a sub-forum specifically for newbies, so this alone is a great way of learning the required skills because there are lots of experienced traders on there ready to answer your questions.

There is also a decent news section on this site and a useful calendar on the home page which lists all of the economic data releases that are scheduled for each day. However it is the forum that will be most useful for those just starting out.