Forex Trading is trading currencies from
different countries against each other. Forex is an inter-bank market
that took shape in 1971 when global trade shifted from fixed exchange
rates to floating ones. This is a set of transactions among Forex market
agents involving exchange of specified sums of money in a currency unit
of any given nation for currency of another nation at an agreed rate as
of any specified date. During exchange, the exchange rate of one
currency to another currency is determined simply: by supply and demand –
exchange to which both parties agree.
Actually Forex is the financial game between BULLS and BEARS.
The Major currencies pairs are:
EUR/USD
GBP/USD
USD/JPY
USD/CHF
USD/CAD
AUD/USD
And these are the 6 best Forex Markets.
What are Forex Signals?
Forex signals are indicators that let you know when it’s a good time
to buy or sell a currency pair. They provide you with insight as to
what’s going on in the Forex market without the necessity to monitor
Forex trends throughout the day. If you are self-employed or employed by
another company,
Forex trading is likely a part-time endeavor for you.
You won’t have time to sit at the computer and monitor the Forex market
all day. Forex signals can be delivered to you throughout the day by
professional Forex traders to give you a heads-up on what’s going on in
the market. You can receive the signals, and then place the signals for
buy or sell.
Forex signals are basically “suggested” buy and sell points with
price targets and stop-loss levels delivered by fx signal providers to
traders. They may be delivered by email, instant messenger, cellphone,
live currency trading systems or direct to your Forex signal metatrader
on your desktop.
Forex trading is a risky business and it takes some time to master
the art of Forex trading signals. There are a number of fx signal
providers but before you choose, you need to make sure you have done
your homework. Always ask for the
Free forex signals to deliver for 3 to 5
days and test those signals in your Demo Account.
The main characteristics of Forex trading signals to be aware of are as follows;
Cost: monthly subscription
Complexity: Simple “one email a day” OR Full-Service
Control: You keep full control OR the signal provider trades your a/c for you
Most Forex trade signals charge a very modest subscription fee, usually in the region of USD $80 – $400 per month.
If you’re new to Forex trading, you probably realize how important it
is to make the right trading decisions. One wrong trading move can
drastically harm your portfolio while a good move can bring tremendous
profits. That’s why trading signals are so important. Once you’ve tried a
Forex demo account for practice and created a
forex trading strategies that works for
you, you can add trading signal services as a useful tool in your Forex
trading.
With online Forex, finding a trading signal service is easier than ever.
In their simplest form a Forex trading signal will send you a Forex
alert email once a day listing trade set ups for the next 24 hours.
Some Forex signal providers offer a free trial service, thus allowing
currency traders to sample the signals to assess their worth. This is a
helpful step, as it allows the trader to consider the quality and
reliability of the signals before paying money. This is a crucial
element in the research process, and weeds out the providers who want
money upfront as they are not confident in their ability to call
profitable trades. This is a good service that you can try for free for 3
to 5 days.
Various fx signal providers offer a few complimentary services along
with the featured ones. Look for a fx signal company that provides email
support, phone assistance and even mentoring to their clients. This is
of great value, especially to new traders.
They assign their time assisting traders in taking buy/sell
decisions. Forex traders depend upon and trust the recommendations of
these professional signal providers, while making investing decision in
the Forex market
Forex signals are not meant to be a magic solution to all your Forex problems. They are designed to inform you about the market.
Forex business timing is extremely crucial; a trader can earn
millions or lose even more depending upon the his timely or untimely
actions. Besides, being the biggest market on the face of earth – it
generates business activity of almost 3 trillion USD, it operates around
the clock, all over the globe, making it thus impossible for a trader
to stay vigilant all the time about market fluctuation and probable
changes therein. Therefore a trader needs alarms and indicators to get
knowledge about the possible opportunities and probable pitch points.
Hence the need for Forex signal or alerts. Basically
foreign exchange alert or
signal is a communication or intimation to the trader indicating the
ripe time to buy/sell and the suitable price to pay/ask. Most of the
time, such signals and alerts are provided by trained professionals,
either individual or companies.
When choosing a Forex signal service, be sure the company offers the
type of signal alerts you need. Every person is different. Some require
computer or email alerts, while others are not accurate Forex signals
are made for both professional traders and although new traders. The
best Forex signals trading system is going to cover multiple situations
on the Forex market. For instance the best Forex trade signals is going
to cover all major currencies like GBP, USD, and EUR at all times the
market is open, not only for specific situation. Simply to get the full
value of your Forex trade you must know what is happening in regards to
all the major currencies. The Forex system should also be able to give
you at least 1-3 Forex trading signal alerts a day.
Some Forex trading signals are high volume scalpers, calling many
trades in a day aiming to profit a handful of pips on each. Others only
call a few trades a day, aiming to profit 20 – 80 pips on each single
trade.
Forex trading signal providers help you in minimizing risks or losses in trading.
Forex signals are generally given on a daily updated basis and all
are contingent on factual market analysis and behavioral flow and not on
mere hearsay and other speculations.
The signals are calculated and generated by using different
indicators such as trends, moving average, Elliott waves, Bollinger
bands, Fibonacci series, etc. In spite of that, some uses strategies
like:
Pip Maximizer Method 1
Pip Maximizer Method 2
Pip Reversal Method
Pip Divergence Method
Instant Pip Method
Pip Retracement Method
Quantum Pip Strategy
… to give profitable and accurate signals.
The following question I wish to raise, is the abundant selection of
Forex signals from which we can choose. Because of the variety of
service providers, they offer different services, of which we must be
aware. The first type of Forex signal provider will just send out trade
alerts by email, often daily, sometimes at several intervals throughout
the day. Thus you need to have a laptop of email receiving device ready
at all times, to gain the most from trading Forex signals.
The next type to consider are through EA/Expert Advisors. These types
of signals are not good at all because those are the computer oriented
programs which can ruin your money within a few trades. But fortunately
this is not such a big problem today, as more traders have email reading
devices. The most crucial aspect concerning the format you receive the
signals, is to ensure that you receive them immediately, and have the
capability to act on them straight away – so you have to have immediate
access to your
Forex brokerage account, and place the trade as soon as
you humanly can.
A unique benefit of trading Forex signals is that it gives guidance
and discipline in a Forex currency trader. Forex profit signals service
providers send you alerts when the conditions are right for the trade.
They use cutting-edge technology which constantly monitor all major
currency pairs for generating technical indicators.
Forex signal generators produce Forex signals which are indicators of
ideal trading opportunities. These are certain algorithmic patterns
which have been evident in successful Forex trades throughout the years.
These Forex signals are then fed onto the program of Forex automated EA
or Expert Advisors. This program will then either make Forex trading
decisions for the individual while s/he is away from the computer or
advice the individual about what to do. Forex EAs act like wizards which
monitor currency ratings through online Forex Trading Platforms. One
can look at Forex signals as triggers of commands which allow the
automated system to function.
Forex signals can immeasurably add to the profits of a Forex trader.
How to Receive Forex Signals:
Forex signal services are available to provide signals to you around the
clock. These services usually have professional Forex traders who
monitor the market 24/7 and provide you with up-to-date information.
These services often charge a monthly or yearly subscription fee for
their services. The methods used to deliver the Forex signals to you can
vary from one service to the next. Signals can be sent through email
alerts, to your phone or cell phone, through your pager, or even through
a pop-up software system that will show a screen on your computer each
time a signal is sent. The services also vary in how they present
information to you. Some will provide live charts to give you more
insight as to what as happening in the market.
Time frame for which the Forex trading signals are generated is
equally important. Few trading signals can be valid only for a few
minutes or an hour; others may have recommendations that are valid for a
day or more. If the Forex trading signal providers generate signals for
shorter time frame, you need to monitor the market frequently.
Some Forex signal service providers offer add-on services like email
or mobile alerts. The service provider should have end-to-end technical
support for the customers.
Even with experienced traders calling your trades, it’s prudent risk
management to never ever risk more than 3% of your initial capital on
any one trade, preferably only 1%. So, if for example your initial
capital, (or to put it another way, the maximum you can afford to lose)
is let’s say 5,000, the position size you take on each trade should be
such that if the trade hit your stop loss, your maximum loss would be no
more than 1% x 5,000 = 50.
Forex signal providers render Forex business quite a bit easy for
traders, especially those who are relatively new in the business. Forex
signal generation and provision can be either manual or automated and it
provides entry/exit points of the trade streak for major or already
chosen currency pairs. In manual signal generation system a simple trade
signal is provided by the single provider. In automated signal
generation system, the Forex system not only intimates and alerts the
trade to either enter or exit the trade, but some times makes the deal
by operating in synchronization with the trader’s bank or
broker.
Initially Forex signals and alerts used to come in the form of
telephone calls and facsimiles. Now as we have stepped into the era of
information revolution which has brought forth amazingly advanced
digital technology, Forex signals and alerts generation and provision
system has also advanced and become much more sophisticated and quick.
Now these alerts come in the form of e-mails, SMS (Short Message
Service, a way of sending text messages to mobile devices), or desktop
software. However with trading Forex signals, there is no such chance to
over trade your account. It is absolutely possible to learn the mental
aspects of trading, by following a set of rules, and not to deviate from
those rules.
Many trading Forex signals provide you with a complete set of
instructions in order to take the trade. Frequently the signal will have
multiple exits, which enable a trader to take money off the table in
small steps. So this enables the currency trader to input all of these
prices into his trading platform when he gets the signals, and then to
switch off the computer.
As for any purchase, it is essential that the Forex trader first does
his research into the more effective trading Forex signal service for
him or her. This involves a lot of careful research, and reading various
reviews and testimonials of the service in question. Before I go, in
conclusion, the trader is strongly advised to practice using the trading
Forex signals on a demo account first, so that the Forex trader can
totally test out the profitability of the signals. This has an
supplementary benefit for a complete new, as it will enable the currency
trader to become familiar with the trading platform, and reduce the
possibility of making any mistakes.
Whenever possible, go for a free demo account and then try your forex
signals for a few days before becoming a paid member. Forex trading
does involve some planning and strategy building so be prepared for a
steep learning curve before trading with real money!
I’m going to start by telling you some cool facts about the FOREX market.
As you may already know, FOREX is the acronym for “The Foreign
Exchange Market.” This market concerns itself with the buying and
selling of the currencies of just about every country on earth. This
market is BIG! So big, in fact, it’s hard to wrap your mind around the
size of it.
Listen. The daily average volume of FOREX is:
Almost 5 TRILLION Dollars Per Day!
I’m going to try to bring that fact home for you: The New York Stock
Exchange has a daily volume of approximately 50 billion dollars. That
means the FOREX is 100 times larger than the NYSE
Actually, the daily volume of the FOREX is triple the size of all other investment markets combined!
In spite of its size, the FOREX does not have a physical location or a
central exchange. It operates through an electronic network of people,
banks and companies that specialize in trading one currency for another.
Almost all FOREX trades are executed on the internet by someone
sitting at a computer with a high-speed connection. So, if you don’t
like working with a computer you may as well stop reading… because… you
will be left out.
Still with me? Good.
The Only 24 Hour Financial
Market In The Whole World
Because the FOREX does not have a physical location or a central
exchange, it is able to operate on a 24 hour basis leapfrogging from one
time zone to another across the major financial centers of the world.
The FOREX market actually follows the sun around the globe… because…
as one country is closing for the day, another is just opening up. This
market is open 24 hours a day, six days a week from 5:00 PM Sunday (East
Coast Time) to 4:00 PM Friday (East Coast Time). This 24 hour access
combined with its huge trading volume makes this…
The Most Liquid
Market On Earth!
Except for Saturdays, you can enter or exit the FOREX market anytime
night or day. This market has virtually no gaps whatsoever and your
stop-loss orders are almost guaranteed.
Can you imagine that? The multi-trillion dollar liquidity, combined
with 24-hour trading access virtually guarantees your stop-loss orders
will be executed without slippage.
Just try to get that kind of guarantee from your stockbroker!
The stock, futures and options markets cannot offer you this
guarantee because the limited trading hours create frequent gap opens.
Nearly all Forex brokers make sure their hours of operation coincide
with the hours of operation of the global FOREX market.
Let’s see, what else?
Oh, yeah, no one can corner the market. The FOREX market is so huge and
has so many global participants that no single individual nor entity…
not even a central bank… can control the market for any significant
period of time.
Plus,
There Is No Insider Trading!
Because of the vast size of the global FOREX market and its
non-centralized nature, there is no chance whatsoever for disruptions
caused by insider trading. There is less chance for fraud in the FOREX
than in any other investment market. Best of all forex can never become
zero but stocks can become zero and majority of the options expire
worthless.
There are no commissions. Yep, you read it right. No exchange fees,
no closing fees, no government fees, no brokerage fees. This all adds up
to a very low retail transaction cost. If you select your broker
properly, your round-trip transaction cost could be as low as .07
percent.
And know this, a very desirable by-product of extremely high
liquidity is almost instantaneous transactions executed with blinding
speed. You can leverage your trades by a factor of 50 to 1, 100 to 1 and
even 400 to 1.
Not only that, you can trade with a very low margin with relative
safety compared to the disastrous potential of margin trading found in
other financial markets. Also it is tax free income if the country you
reside has no capital gain tax.
And finally, if you get really great at currency trading, your potential financial reward is so big it can make your head swim!
As an experienced researcher, my idea is to learn and share
everything I can with my readers. Stay tuned for more business, travel
and career ideas as I love to write about this subjects and more…
I have the Love and Passion for Trading which force me to spend
countless hrs for learning, experimenting & perfecting the Art &
Science of Trading. My ultimate purpose is to help you live the life
that you deserve. I know how it is, most people work hard to make a
living, yet it feels like a never-ending treadmill. After paying the
bills, there doesn’t seem to be enough left over to enjoy what life has
to offer. I know EXACTLY how it feels, because I was there once. I did
my research and discovered how many of the world’s richest people had
made their fortunes. I modeled my efforts on their example, and invested
time, money and energy to learn all I could about Trading
