It always amuses me, when traders buy Forex robots for a hundred dollars or so and thinking they will get rich with them – but none of them work as they have never been traded in real time and are simply back tested simulations. The 2 Free Forex trading strategies we will look here, have made hundreds of millions in real time profits, lets take a look at them in more detail.
The systems we will look at have worked for over 25 years and unlike the popular Forex Robots you see for sale online, these systems are from trading legends not just programmers, these systems work in real time, not just in back tested simulations.
The first free Forex trading strategy we we will look at is “The 4 Week Rule” which was devised by the grandfather of modern trend following Richard Donchian. We have written in detail on this strategy, in other articles but in summary, its a one rule, trend following system which is based on breakout trading. While incredibly simple it works and always remember, the best trading systems are simple, as they have fewer elements to break than complex ones.
If you apply the 4 Week rule correctly, you can make some great long term Forex profits with a system that has stood the test of time.
The next strategy we will look at which you can get for free, comes from Richard Dennis, who incidentally, was also a fan of the 4 Week Rule; His strategy was based on the same logic, trading long term trends via breakouts and it made huge profits. The rules he devised, were used by a group of novice traders to show that anyone, with the right education and system, could win at Forex. Dennis was proved right and in just two years, his group of novices made $200 million real time dollars with it!
The system rules are available free and if you look at the strategy it has all the elements a good strategy has and I personally think, any traders should look at it for the money management rules which are a great example of how to preserve equity. The system is less effective today than when it was first used, as markets have become more volatile but for showing you the basics a good strategy needs to succeed its a great system to look at.
Two simple systems, by true trading legends you can learn from and there both free! Look them up and make them part of your essential Forex trading education and if you learn from them, they will help you enjoy currency trading success.
By: Samuel Leslie Berkovits
Posts Tagged ‘Right Education’
Free Forex Trading Strategies – 2 X Trading Systems the Pro’s Use That Have Made Millions in Profits
March 1st, 2010Forex Trading Made Easy – A Simple Way to Make Triple Digit Gains
February 28th, 2010
Here we will look at Forex trading made easy and despite the fact the vast majority of traders lose you can win if you work smart and get the right Forex education…
You do need to make an effort to win and while the rewards are huge for your effort, you do have to do some work, most new traders however think they can get away with doing no work at all! They fall buy a Forex robot and think they can simply plug it in and rich but if Forex trading was this simple, a lot more people would win. These systems don’t work so don’t be tempted by them!
The first point to keep in mind is that the best Forex trading systems are simple and this means, anyone can learn a solid Forex trading strategy for success, you don’t need to work hard, you need to work smart and you can easily learn a system in a few weeks.
Most traders think that if they make a lot of effort or trade often they will make more but the fact is this is not true. Trade to often and you will end up taking low odds trades and lose. Instead of scalping or day trading, low odds trades, trade the big trends. If you look at any Forex chart, you will see them and they last for weeks and months. So you need to lock into them and hold them. If you follow long term trends you can make triple digit profits in 30 minutes a day or less.
Finally, you need to approach Forex with the right mindset and learn to take and keep your losses small, if you run losses and hope they turn around you will lose.
If you are long term trend following you can lose more trades than you win but because your profits, will be far bigger than your losses you can make huge gains.
If you want to win at Forex you need the discipline to cut your losses and the courage to run your profits and having this mindset is essential for success. If you learn Forex the right way and get the right education and mindset, there is nothing to stop you enjoying a triple digit annual income.
By: Kelly Price
Forex Trading – These Traders Had No Experience But in 14 Days Became Super Traders – How?
January 23rd, 2010
Imagine having no experience of forex trading, being trained for 14 days and you then went on to make millions – sounds far fetched? Well, it happened in the 1980s in one of the most famous trading experiments of all time which is enclosed and should become part of your essential forex education.
In the nineteen eighties, trading legend Richard Dennis wanted to prove a point and the point was simple:
It doesn’t matter what you do, how intelligent you are, if your young, old male or female, you can become a successful trader, if you have the right mindset and a willingness to learn.
He set out to prove his point.
He gathered a group of people who met the above criteria and they included:
An actor, a security guard, a kid fresh from school and a female auditor – diverse they were but they were all about to get a trading education.
In 14 days, Dennis taught them to trade and set them up with live accounts and they went on to make hundreds of millions of dollars and go down in trading history.
This group was nicknamed “the turtles” and proved Dennis right – anyone could learn to trade with the right education and the right attitude.
That’s interesting you may say… but 95% of traders lose, so how come this group was so successful?
The answer lies in the way they learned.
They learned a simple long term trend following trading system (essentially a breakout system) and it was so simple anyone could understand it. It’s a fact also, that simple trading systems always work best, because they have fewer elements to break than complicated ones.
Now Dennis didn’t just say off you go and trade – he rammed home why it worked, gave strict money management rules and made sure they would be prepared to trade it with discipline, to achieve success.
The above is the important part.
Learning a trading system is not enough, you need to execute it with discipline and take loss after short term loss, without quitting and then profits follow. You need to take losses to win and stay on course.
To trade you need to follow your system with discipline and you need confidence to do this. He taught them to stand on their own two feet and appreciate – learning a trading system is easy – executing it with discipline is the hard bit.
You can learn from someone else – but you have to make the system work for you!
Most traders can’t do this, they like to ask experts, trade worthless robots with simulated track records, or believe drawdowns don’t last and trading is easy and they all lose.
Trading is all about having the mindset to succeed and to execute a plan. Most traders are to lazy or naïve to do this and most think forex trading is easy. Well, when big money is on the line and to be earned – it’s not easy. However, there is a big difference between something being easy and something being achievable.
Sure you might not become as successful as the above group life simply isn’t like that but the opportunity is there – they did it you could to.
Even if you don’t achieve such great success, you can find success which more than makes up for the effort you have to put into your forex trading.
Sure forex trading is not a walk in the park, it’s a challenge but accept it – work hard, have the mindset to succeed and you can find success – it’s up to you.
By: Monica Hendrix
