Copenhagen, Denmark (PRWEB) December 15, 2005
TraderMetrics, the forex simulation software suite is now available to the general public, as an unsupported suite, having been previously supplied exclusively to the banking industry.
The price has been reduced to an affordable level in an effort to allow private investors get an insight into the inner workings of the forex, and indeed any financial market. The price is $49 or $79 depending on the version.
A free evaluation version is available on registration at the Forex Trader Mentor website (http://www.forextradermentor.com/tmsignup.html)
The software was developed originally to train and assess Interbank forex traders and is a simulation of the $2 trillion daily turnover forex market. In addition regular trading, traders get to experience market making at first hand, providing an understanding of what makes markets move, knowledge previously available only to financial professionals.
The system uses live forex rates, subject to a suitable price feed, or canned (synthetic) rates. A clear advantage over broker 'demo' accounts, because scenarios can be worked through by the trader to practice trading systems and rules. We use the system as a part of our mentoring program to reinforce money and risk management concepts and help traders build consistent results before risking capital.
A 'virtual market' is also possible, thus creating an environment on the Internet where traders actively trade against each other whilst dealing with customer orders. There is no closer way to replicating a real market than this with the advantage that traders are working in a risk-free environment.
The virtual market also gives a possibility of creating an on-line trading game where participants can stake an amount on being the best trader at the end of a trading session where other traders are eliminated leaving an ultimate winner. We are interested in finding a strategic partner who has the marketing expertise in the on-line gaming industry.
A scaled-down version server software is available for $250, so groups of traders can create their own virtual market and trade against each other. The price charts from these virtual markets are indistinguishable from actual forex price charts, because they are formed under the same conditions.
TraderMetrics comes with a synthetic rate file generator and editor, a live rate recorder, a dealer evaluation database analytic tool and a comprehensive help system. There is a regular newsletter available and a forum is planned for the near future.
Bank- and broker-based traders will continue to benefit from TraderMetrics in honing their forex trading skills and Forex Trader Mentor is offering in-house training courses worldwide to banks and local financial markets associations.
How do financial markets really function? Primarily by supply and demand- "more sellers than buyers" as some would put it.
Take the forex (foreign exchange) market - probably the most efficient market there is. $2 trillion is the normal daily turnover and price information is instantly transmitted to hundreds of thousands of end users all around the world. Likewise, all economic news is absorbed into the price.
Traders at the big money-center banks see the moves genearted in the 'market-making' operations, where they will quote tradeable prices to all-comers to earn a 'spread', the difference between the buying and selling price. From these so-called flows, they believe they can preempt other customers jumping on the bandwagon and buy dollars in anticipation of selling them back to customers at a higher price a few minutes later.
Big money is made here - the handful of banks engage in the highly-automated market-making operations are probably turning over some $100 BILLION per day. If they make just a 1 'pip' spread on each trade, they are making between $7-$10 million per day. Although sometimes they get 'steamrollered' - days of high volatility, when unexpected events create fast markets cause them to suffer losses. Therefore, they want to know the flows, and be the first to get wind of an upcoming large order - like a central bank deciding to switch some of its currency reserves from one currency to another. For example, China's forex reserves are over $700 billion dollars. If they switch just 1%of these reserves from dollars to Euros, then $7 billion will hit the market!
So, what about the poor retail forex trader. Is he doomed to be at the end of the food chain, where being last to know means always being in a losing trade? Yes, probably.
The truth is that the small investor is not privy to what is really going on in the market, and neither can he ever be so. Many former Interbank traders go on to be very successful traders in their own right, running successful hedge funds. They understand the inner workings of the market and the forces that are driving prices.
What can the private retail forex investor do about this? He or she would be wise to invest in a simulation that replicates the conditions in the Interbank market. Such as TraderMetrics.
With TraderMetrics, users become market-makers in the forex market and learn how to handle the flows. They learn the factors that cause herd mentality, which has more to do with staying within limits than being 'scared'. They get the inside track on trading that will give them several 'aha!' moments.
The best news is for all traders is that once these principles are learnt in forex trading, they can be applied to any market with success.
As well as being highly educational, TraderMetrics is also a lot of fun.
Go visit the website, register and download a fully-functioning evaluation from http://www.forextradermentor.com/tmsignup.html
Steve Pickering is a professional forex trader mentor and has been involved in the forex market as a trader, broker and trainer since 1971. Please contact Steve on +45 40864113 for all enquiries related to TraderMetrics or visit http://www.forextradermentor.com.
The information contained in this release is not intended to be, and should not be construed as, a recommendation regarding any potential purchase of an investment or the rendering of risk or investment advice. Trading in foreign exchange is a business associated with risk.
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