Learnig Foreign Exchange

As all traders, I have seen over the last few years an interminable flow of ads having the intention of getting bonds traders open an account to trade foreign exchange, or FX. These ads made it seem as we're in a wrong business, as they normally reveal all the benefits of trading forex compared to all the shortcomings of trading stocks.

The event that triggered my decision to give it a try two years ago was that I created a recent shares trading account with a firm that also provided FX investing. The minimum deposit required for the shares trading account was $2,000 but for the FX account it was $250, what they call a "mini" account. This seemed like a practical amount to risk on something I knew very little about, so I went ahead and funded it.

Most FX firms offer demo accounts to any person who would like to to create one, even those people who aren't funding a real account. So you absolutely have not much to waste trying your hand at forex this way, and discovering if you want to trade later with actual money.

Trading long or short is easy, with the same amount of risk, differently from shorting bonds where you need to follow certain restrictions. I was able to get out of fx trades going in the wrong direction and reverse my trade immediately.

In essence, what have been the results?
In two years with FX I did not make cash with manual trading until I found a few genuine FX robots, or expert advisors (EAs). Expert advisors are fundamentally software products with complex pre-defined rules that create trading decisions alone. You just install your robot on your FX chart and watch it trade in real life. This seems great right? A robot that allows you to make money while you are doing something else?

Think twice!

The reality is that 99% of these advisors are bogus, fraud, or do not work. I bought hundreds of them and lost a large amount of money in trial and error. There are, nevertheless, a few reputable firms that create genuine trading robots, with logic similar to those used by proprietary firms in Wall Street. As a rule, these firms are founded by Wall Street dropouts.

After two years of experimentation I have discovered a few forex robots I am satisfied with and that make money day in day out. If you want to know more check my reviews at www.forex-ea-reviews.biz

There are 3 simple rules for choosing a good forex expert advisor:
1) Ignore backtests. It is forward tests that carry weight
2) Look at refund rates from other customers. How many request their cash back?
3) Make sure they have money management routines built in