Although there are already millions of people who trade the Forex markets each day, the number in America is surprisingly small. The biggest reason is most likely the misconception that traders can lose all their money and end up bankrupt if the market moves against them.

Nothing could be further from the truth.

Forex brokers have set up certain stop/loss mechanisms in their trading platforms to ensure that if you are in a losing trade, the most you can lose is the amount of money in your trading account. No one shows up at your house at 3 a.m. demanding you pay up or take delivery of a currency contract.

Forex trading is just as safe as any other form of commodty trading, and at this point in our existance as a nation, probably the most important skill you can learn to protect yourself and your family.

Why?

Because in case you hadn't noticed it, our national economy is going down the tubes. Inflation (true inflation, not that fantasy number released by the government each month) is eating away at our paychecks and draining our bank accounts. Gas prices are starting to climb, and many analysts believe we will see $100 a barrel oil before the end of 2007.

Grocery Prices have almost doubled in the last year, further eroding the ability of Americans to make their paychecks last from week to week.

Most importantly, the countries who have been buying U.S. Treasury Bonds (China and Japan, primarily) are now looking towards other countries and other currencies to invest their surplus capital.

That means the US Dollar is on the verge of COLLAPSE! And when the bottom drops out on the dollar, there is only one place you can go to invest, secure in the knowledge that your investments will actually grow in value: the Foreign Exchange markets.

Right now, hundreds of thousands of traders are buying Euro and Yen contracts, selling US Dolars in the process. As the dollar continues to weaken, the value of those Euro and Yen contracts grows. Although it's doubtful the Dollar will lose all it's value, a reduction of 25-50% is not at all out of the realm of possibility.

And when the Dollar starts to fall, the normal investments most people have (stocks, bonds, mutual funds, etc.) will fall right along with it, unless those investments are tied directly into foreign exchange trading.

So do yourself and your family a HUGE favor and investigate Forex Trading. It will be well worth your time.

http://www.Simple4Xsystem.net

Five Things You Should Know About Trading the FOREX Markets.

1. Virtually anyone who has a credit card or a bank account can open a Forex Trading Account with just about any Forex Broker. Brokers don't care about your credit rating, or whether you're an expert Trader. There is almost NO risk of applying to open an account and being turned down. As long as you're at least 18 years old and have a mechanism in place to fund your account with at least $250 US, you can trade foreign currencies.

2. You do not risk bankruptcy if you open an account and get into a trade that causes you to lose money. Forex Brokers structure every trade so that if you lose all the funds in your account, your trades are automatically closed so that you cannot lose any more money than what is in your trading account.

3. The Forex Markets are NOT impossible to follow and understand, and the knowledge one needs to successfully trade in these markets is neither difficult nor expensive to obtain. With a little searching, you can find several sites online that are either straight educational sites that will give you a solid background in trading Forex, or forums where traders meet to share information and ideas. There are a few (and only a few) places that sell educational material that will move you along towards your goal as a successful trader. There are MANY places that sell nothing more than what you will learn on the free educational sites. Before you spend a dollar on educating yourself, make sure the vendor you are considering has established a reputation for selling quality information.

4. Unlike the stock market, which is open just a few hours a day, Monday through Friday, the Forex Markets are open from 5:00 p.m. Eastern Sunday to 4:00 p.m. Eastern on Friday. This gives traders around the globe the chance to trade during "normal" hours, before, during or after work.

5. Also unlike the stock market, at any given point in time there is demand from traders to both buy and sell particular currency pairs. That means at any time while the market is open, you can buy or sell a currency pair at the market price. An hour later, you can reverse your decision and find someone willing to buy or sell your contract, again at the market price. Contrast that with certain low cap stocks, where you could buy today, and for a variety of reasons not find a one person to buy your stocks from you tomorrow, the next day, or even next week. This won't happen in Forex.

Of all the various ways that exist to trade the Forex Markets, I think Forex Scalping Systems are my absolute favorite! It's a fast-paced trading style which keeps me riveted to my computer screen for the 2-4 hours I trade each night. I'll even go a little farther and say that using Forex Scalping systems is as close to the Las Vegas feel you'll find as a Forex Trader.

But unlike Vegas, if you are using a solid, tested Forex Scalping system, the odds of profiting are firmly on YOUR side, as opposed to the House.

The basic idea behind Forex Scalping Systems is that you get into the market, earn a couple of quick pips, and get out with profits intact. Do this a few times a day and you can easily make 20 pips per day. And if you're making 20 pips a day, you are on track to Millionaire Status in less than three years.

The Forex Scalping System I use is actually simple to set up, involving only a pair of ema's and a pair of lesser known indicators that tell me when to enter into a trade and when to exit. I also trade this system on a 1 minute chart, and only on the EUR/USD pair. Finally, I only trade between the hours of midnight and 4 a.m., Eastern Time.

This may sound like a lot of rules, but they are there for a reason. I use the 1 minute charts (instead of 5, 10, 15 or 30 minute charts) because the shorter time period gives me on average 8-10 trades during a 4 hour period. Using longer time frame charts gives me fewer chances to trade during a normal session.

I limit my trading to a single pair, the EUR/USD, simply because using a fast-moving chart requires all my attention to make sure I don't blow an entry or exit signal, and having to watch 2, 3 or more pairs at the same time will leave me open to too many mistakes. Also, the EUR/USD pair carries the highest pip value, and I want my time to carry the most value possible.

As for my midnight to 4 a.m. trading session, after a lot of trial and error, I've narrowed down this time period as being the most profitable for my system. Technically it will work around the clock, but I've found I can make more pips and suffer through fewer losing trades by limiting my session to this 4 hour period. Other Forex Scalping Systems might work better in a different time frame.

I still use my other systems, including Trading the News, but almost 90% of my trading (and my profits) now come from my Forex Scalping System, details of which I list in my book found at www.Simple4XSystem.net.

A few years ago, I drove from California to Florida to take on a new job. Before I took off, I looked at a map of the US and determined that by following I-10 from LA all the way to the north of Florida, I could make the trip quickly, and with a minimum of turns.

Then I bought the map and took it with me.

Why?

Because any time you decide to head into unfamiliar territory, you're survival depends on your having access to information left by those who have been there before you. In my case, it was a Rand MacNally road map of the United States. And it came in handy in San Antonio, when I was forced off the highway due to road construction, and the road signs detoured me into a less than attractive area of the city. Thanks to my maps, I charted a new route back to the freeway (past the construction) and was soon on my way back to Tampa.

If you've never traded the Forex markets before, your best shot at doing so profitably involves you developing your own "map" called a Trading Plan.

Simple put, a Trading Plan is a written plan of action that governs literally your every move as a Forex Trader. Mine not only details the systems (or methods) I'll use to trade Forex, but also puts in safeguards that prohibit me from trading if I am physically, mentally or spiritually not up to par when my trading session starts.

My Trading Plan also specifically states how much money I am willing to risk on a single trade, sets out clear profit targets, and builds in requirements that I document each trade in my Journal, for later review.

My Trading Plan even covers what I'll do in my off hours (when I am not actually trading) in order to keep myself up to date on all the latest Forex related news and events.

Before I started actually making money in the Forex markets, I did what most new traders do. I jumped into a variety of bad trades, winning some, losing most, and emptied my trading account in just a few weeks.

Instead of quitting, or worse yet, reloading my account and going after my lost capital, I spent some time researching WHY most Traders (including me) lose money.

It is the lack of a Trading Plan. That, and poor money management skills (which I'll address in a later article). Once I had my Trading Plan in place, I started making regular profits as a Forex Trader.

So to paraphrase the old American Express commercials, Trading Plan: Don't Start Trading Without One!