I've been trading for 25 years now, starting out in the 30 year bond pits at the Chicago Board of Trade. So you could say my methods have stood the test of time. The CBOT was the school of hard knocks, and you were either good or they showed you the door.

If you're not familiar with forex trading, you're probably wondering how it's different from stock trading. But if you really want to know, both forex trading and stock trading are both risky investments that is NOT for everyone. Also, both types of investments do NOT involve any real loss unless if you convert your investment into cash. However, this is where the similarity ends.

All forex traders make mistakes, but the successful traders learn for the mistake they and others make. It is important that you know about some of the common mistakes made by traders so you can learn to avoid them. One you know what these common mistakes are you will be able to trade around them and lose less when you are trading.

There's a reason we're up 28% for the 4th quarter. Its primarily because of my proprietary pivot system developed during my years as a member at the Chicago Board of Trade. Here's how it works: My algorithm finds exact prices where there is an 85% chance of a useful move.....30-75 pips on day trades; 150-600 pips on swing and long term trades. Importantly, since they are exact price points, you can take 3-4 pips risk on a day trade and 10-15 pips risk on a swing or longer term trade.

It’s been said by many professional FX Traders that where you get out of a trade is more important than where you get in. Obviously the entry point is critical,

A very important concept that we @ Global FX Trading continue to stress is why you want to maintain a 2-3:1 reward: risk ratio. If you can achieve that ratio consistently, it will help you become more profitable over time, reduce the stress of believing that you have to “win every trade” and allow you to concentrate on proper risk management, relative strength and weakness, position sizing and an objective exit strategy that lets the market take you out.

In FX trading as well as in equities, bonds and commodities trading, we are used to reports being released to the market that we know the date and time but not the impact. They are called known, unknown events . We know that a Central Bank, for example, is releasing their Monetary Policy Statement on a certain date and specific time. But what we don’t know is what the report says and more importantly, how the market will react to it. Again a known, unknown event is quite common.

There are many who believe that the markets today, require the same skills as 30 years ago - but today’s markets are actually much harder to trade. It may surprise you, but markets have changed and are now harder to trade - but if you know why, you can increase your profits dramatically. If you don’t already understand why online currency trading has made making money harder, then you need to know - because you can then make huge profits, at the expense of other traders.

There are many benefits and advantages for trading currencies on the Foreign Exchange, better known as Forex. The Forex Exchange was established in 1971. This market grew at a steady rate throughout the 1970’s, but in the 1980’s Forex grew from trading $70 billion per day to over $1.5 trillion each day. There are many huge players in Forex, but it is accessible to the individual trader. Each lot traded is worth approximately $100,000. By using leverage, an individual trader is only required to have a $1000 investment in the trade. This is a 100:1 leverage. No other market offers this amount of leverage.

Forex trading systems are all about getting investments into the foreign markets. Foreign exchange markets are abbreviated to be called Forex. The worldwide trading of stocks in companies and in products happen over the Forex trading system. There are over a trillion dollars traded on the Forex market everyday. You can learn to chart and follow markets in the Forex trade world on your own, or you can rely on a broker as you would in the New York stock exchange.