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How to Make Money Trading Currency Online the Easy Way


The world’s currency markets also called the forex has created an amazing opportunity where you can make money from the fluctuation in prices between currencies. Over two trillion dollars are traded daily on the forex and currency prices are constantly fluctuating. If you want to learn how to make money trading currency online there is the easy way and the hard way.

Getting set up to trade currencies is simple. All you have to do is sign up with a forex broker and you can do that easily online. Once you have a broker you can buy and sell currencies at the click of a mouse nearly instantly. Unlike other businesses, with this business you don’t have to find customers. You just click your sell button and it’s all taken care of by your broker.

Most people learn how to make money trading currency online the hard way. They learn all about technical market analysis and how to analyze price charts to try to figure out which direction the currency prices will go. They spend hours every day analyzing currency charts. Since the forex is a 24 hour market they often spend a lot of time at night watching their charts too.

Fortunately for those of us who don’t enjoy spending our time analyzing price charts there is an easier way. Like with many things in the age of computers, why do something when you can get a computer to do it for you? Especially when it can probably do it better than you can. When it comes to trading currencies there are now automated computer programs called robots that will watch your currency charts for you and using sophisticated algorithms they will trade for you when they get the right signals from the market.

Since humans are emotional creatures and not very consistent we are typically not very good at trading. It’s only a small percentage of people who actually get good at it. Computers can actually do a better job at it as long as they are using a proven trading system.

If you want to learn how to make money trading currency online the easy way, get a forex robot. They don’t cost very much, much less than a course that would teach you to trade yourself. Try it out on a demo account first to make sure it works before you use real money.


Source by M Wilson

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Introduction to Forex


Today, well over 1 trillion dollars per day is traded on the currency exchange market. This amounts to roughly one thirteenth of the US GDP. This amount absolutely dwarfs what is traded on equity and commodity markets on a daily basis.

So why is exchanging currency so popular? Why do more people want to trade on the currency exchange market than on markets for commodities and equity? Well, to give a simple answer: many of the people in the market for Foreign exchange aren’t investors. For instance, some of the biggest players in the money exchange market are multi-national corporations, who need to constantly swap currencies, so they can purchase inputs or finished products from producers in other countries. Other

major players in the foreign currency exchange market include federal governments. They will often purchase other currencies to stabilize their own currency in relation to another. For instance, if the US Treasury or the Federal Reserve System were to purchase Euros (and subsequently take them off the currency market), the value of the Euro would increase in relation to the dollar. This would stimulate European demand for American imports while decreasing American demand for European imports.

While the above partly explains why the demand for exchanging money is so great, it does not do so completely. One other reason why the demand for foreign exchange is so great is because it is the most liquid investment vehicle available. While selling stocks and bonds may take a while and may be dependent on market conditions, selling currencies is usually quite easy. In fact, most online brokers allow you to trade with “no slippage,” which means that the second you click “sell,” you actually sell the currency you’re holding at the exact swap ratio listed on the trading platform. This means that you don’t need to worry about getting stuck with a currency that is rapidly declining in value. Rather, you can sell quickly and get out at any moment.

One last factor that has perpetuated the growth of the money exchanging market is international bank holdings. Not only do banks often exchange currencies for their business account holders when they make transactions, but they also sometimes offer to hold deposits in banks overseas or in different currencies. This can prove to be quite advantageous for depositors. For instance, if the value of the dollar is climbing rapidly in relation to the yen, Japanese banks may start to put some deposits into dollars. After the value of the dollar has appreciated significantly, depositors will be able to exchange the dollars for yen, getting back more yen per dollar than was initially deposited.

As you have read, money exchanging is a massive market, which influences the decisions of governments, businesses, banks, and individuals. Not only does Forex allow each of these players to make an extremely liquid investment, but it also makes foreign transactions easier.


Source by Mark Crisp

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Starting Out in Forex Trading


The foreign-exchange (“forex” or “FX”) market is the place where currencies are traded. The forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.8 trillion per day.

The forex market is open 24 hours a day, five days a week, with currencies being traded worldwide among the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney – spanning most time zones. There is no central marketplace for currency exchange. Trade is conducted over-the-counter.

The forex has been the domain of government central banks, as well as commercial and investment banks. It has also been used for hedge funds by large international corporations. The rules were revised during the 1980s to allow smaller investors to participate using margin accounts. It is because of these margin accounts that forex trading has become so popular. When you consider that a 100:1 margin account allows you to control $100,000 of currency for just $1000, this has created an excellent opportunity for making a great deal of money. Of course, such leverage is also a recipe for losing a great deal if you are not properly prepared. Naturally this course is designed to help you become prepared.

FOREX traders usually require a broker to handle transactions. Most brokers are reputable and are associated with large financial institutions such as banks.

Like anything else, you should shop around for the best bang for the buck when looking for a broker. Here are some things you should look for when considering a broker:

A Respectable Quality Institution – Forex brokers are usually associated with lending institutions or large banks. The reason for this is that such institutions have the large amount of capital needed in order to provide the leverage needed. Look for brokers that are registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). This information should be provided on the broker’s webpage or its parent company page.

Lowest Spreads – Forex brokers do not charge a commission such as Futures brokers do. They make their money from the spread, which is calculated in “pips”. The difference between what you can buy the currency for and what you can sell it for is the spread. PIP stands for Price Interest Point. It is the increment in which the currency pair will trade. For example, if you buy the EUR/USD for 1.2015 and it goes up to 1.2016, it has gone up 1 pip. When looking for a forex broker, find one that offers you the lowest spread for the currency pairs you plan on trading.

Types of Accounts – No two traders are alike. Some have a vast amount of money while others have smaller accounts in which to trade. Look for a forex broker that provides you with some account choices. For example, traders with small accounts or just learning how to trade in the forex should look for what many brokers call the “Mini Account”. This type of account requires a small minimum to open, say, $250. This account allows for a high amount of leverage that you will need in order to trade with so little amount of money. In such an account, you can trade with a $1 pip, as opposed to $10 or higher pip value. Standard accounts have higher minimum balance requirements and allow for trading at different leverages. Read carefully the different types of accounts being offered.

Available Leverages – Leverage is important in forex because the price deviations (how you make your money) are merely fractions of a cent. Leverage is the ratio between the capital that is available and actual capital. The leverage depends on what the broker is willing to lend you. For instance, 100:1 ratio means that for every 1 dollar of your money (actual capital) the broker will lend you $100 (available capital). Some brokers offer 250:1 and even 300:1 ratios. The higher the ratio, the more leverage (bang for the buck) you will have. Keep in mind that a high ratio not only gives you more bang for your dollar but it also increases your risk of a margin call. Lower ratio will lower your risk of a margin call, but it will also lower the power of your dollar.

Extra Goodies (Tools, Research) – To get your business brokers provide various free tools and information resources to their customers. You will want to find a broker that will provide you with free real-time price charts as well as an excellent online trading platform. One very popular platform and the one I currently use is FX Trading Station. But shop around and see what is being offered.

The best thing you can do is to ask around on various trading forums where forex traders haunt. This is because there does not exist any blacklist for those brokers that may commit acts of sniping or hunting, which is prematurely buying or selling near preset price points in order to increase profits. Also, make sure that they are happy with the broker’s margin rules. Some may be too strict and get you out when the market moves against you although you still have enough capital to hold the position. The position may turn out in your favor had you not been exited by the broker. This can be costly. So ask around!


Source by Rick Ratchford

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Easily the Best Way to Learn to Trade Forex


If you want to learn to trade forex, you're far from alone. Each day hundreds and thousands of would be traders blindly throw their hats into the forex ring with no more preparation than watching a few hours of financially aimed programming.

The best way to learn to trade forex is to acquire a demo forex account as there is no substitution for the real first hand experience. Through a demo account you can trade under the same conditions as real traders, but without having to risk a cent of your own money. Instead, you'll be trading with and keeping track of an amount of virtual money. This encourages you to make the learning mistakes which you would otherwise be unwilling to make had it been your real money that you were trading with. After a couple of months and number of successful trades under your belt, you'll be ready to transition into the real thing.

Beyond a demo account, there are steps you can take to lower the overall trading risk factor, as well as learn to trade forex a great deal more efficiently and accurately. Forex systems or software has been developed in recent years to make the trader's job that much easier. Some of the more reputable models easily and more than adequately take the place of a broker, which in the past was unheard of altogether.

Forex software first auto trades on your behalf in times when you are not able to. You determine just how much independence that your program has over your account, many traders leave their auto traders on autopilot. In this way, forex software is ideal for beginners as well as more experienced traders who simply do not have the full time to devote to it.

Arguably the best aspect of forex software is that it anticipates emerging trends in the market, both positive and negative, allowing you to trade accordingly and jump in and out of the market at peaks times. These trends are predicted as the program regularly analyzes market data and feeds it into pre-designed mathematical algorithms which yield remarkably accurate predictions.

They are able to be as precise as they are because said algorithms are tested for several months in advance, sometimes extending over the course of a year, to get an adequate slice of the market time and they are tweaked until the trends which they generate completely align with the real market data as it happens. The best trend indicating programs are hands down the best way to trade confidently and early and if you want the best information affecting your trades. It's a great way to learn to trade forex as reasonably and reliably as possible.


Source by Max Branner

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Professional Forex Trader – Live the Dream in 4 Simple Steps


Becoming a professional forex trader is the dream of many and for most it remains just that – but if you follow the simple tips enclosed, you could change your financial future forever and be making big consistent gains, in just an hour or so a day.


95% of traders lose all their money, yet everything about forex trading can be learned, it's just the majority of traders do not get the right forex education, or have the wrong mindset to apply what they have learned.

Anyone one can become a successful forex trader from home though you need to do the opposite of the majority, it's not hard to do and do your homework.

1. Adopt the Mindset For Success

Most traders are lazy or naive or both.

They read about how easy it is to make money and think someone else can give them success.

Most of the information sold on the net is junk and wont help you win and even if you find some good education, you cant follow it blindly, you need to understand it.

If you do not understand how and why your system works, you wont have confidence to apply it with discipline and you will lose.

Keep in mind if you do not have the confidence and discipline to follow your system you do not have one!

If you like to blame others and do not like responsibility do not trade forex, it's as simple as that.

2. Work Smart Not Hard

You do not need to work hard you need to work smart and this means only learning what is relevant.

Many traders think the more knowledge they have the better but you do not get rewarded for effort in forex trading, you only get rewarded for being right.

In 1983 legendary trader Richard Dennis proved this point in spectacular fashion. He took a group of people who had never traded before and taught them to trade in 14 days – the result?

They made him a $ 100 million dollars and went on to become some of the most successful traders of all time.

Working smart means working on a forex trading strategy that will get the odds on your side and that's what we will look at next.

3. A Forex Trading System for Success

I am amazed at how many traders simply base their systems on logic that does not work, for example:

Most novice traders try day trading yet all short term volatility is random so they can not win, yet they do not stop to think how dumb day trading is.


They believe in scientific theories that tell them they can predict the market in advance and do not stop to think that predicting is impossible.

If it were possible, we would all know the price in advance and their would be no market!

The best you can do is trade with the odds on your side.

Of course, you will lose but your profits should be bigger than your losses and you can pile up big gains over time.

You can build your own forex trading system easily, just educate yourself on.

– Support and resistance and breakouts

– Time your trades with momentum oscillators

– Keep it simple trend lines and 2 -3 confirming indicators max

If you build a system based upon the above it will be simple to understand, simple to apply and will be robust.

Do not try and be too clever and cram too much into your system. If you do, it will have too many elements and break in the real world of trading.

If you do the above, you will have a simple robust system that you can apply in an hour a day or less.

One other point, I constantly read writers tell you to educate yourself all the time, study your profits and losses etc.- Rubbish! If you have a system you believe in leave it alone.

You will have winners and losers but if it's soundly based then you just should just apply it.

4. Building Long Term Gains

What is a realistic amount to aim for?

If you made 100% per annual you will be up there with the top traders in the world and you do not need to do many trades – keep your trading focused on high odds trades only.

So there you have it, a simple plan to live the dream of becoming a professional forex trader from home.

It's a challenge but one anyone can take up and anyone can win – if they want to.

Are you up for the challenge?

If so, welcome to the worlds most exciting and lucrative business.


Source by Monica Hendrix

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Financial Software Forex Trading – My Journey to Financial Freedom


Online trading has been redefined! No more do you have to sit for hours in front of the computer trying to figure the best foreign exchange trade options for you. With the development and launch of financial software forex trading, you can now relax while this intelligent program, which is a Forex robot, does all the work for you.

Financial software forex trading has been specifically designed and developed to automate the foreign exchange trading system. This program continuously analyzes the Forex market, selects the best trade options, and makes the trade for you. Incredible, is not it!

However, as with every break-through innovation, it had to go through a lot of criticism. Many people felt that this program was scam software and could in no way provide consistent trading benefits.

This intelligent and resourceful program, financial software forex trading managed to strike back at the critics with a bang! Forex robots will definitely have the ability to legally double your money in a month. Well, most people will not admit it, but almost all of us dream of making thousands of dollars in a short period of time and without much effort too. With best automated forex trading software, your dreams can actually turn into reality.

Financial software forex trading will do all the work for you while you play, sleep, watch television, or go out for a party! Probably, this easy way of doubling money is one of the reasons why people think that it's scam software. However, you should realize that this easy way of making money is not a scam; it is the genius of the creators of this clever Forex robot.

Most of the creators validate back test results with live forward trading. This simply means that if this automated forex system shows a demo profit of 100 percent in one month while back testing; it is able to produce anything between 80-100 percent in live trading.

This is exactly the reason why we should think of forex trading software to make passive income stream and make a happy family.

Forex robots have a bright future for itself as well as those who try it out!


Source by Allisson Wood

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Things You Should Know Before Going to Real Trading


There are things you should know before going to real forex trading that are important for success. Professional forex traders are not created by magic; they are made through hard work and perseverance. You do not wake up one morning suddenly knowing how to trade profitably, you have to spend time learning about forex trading and then use the information you have learned to gain experience.

Learning to be a successful trader should be a fairly easy process, but it is not. There is incorrect information available about trading and sometimes, traders that are new mistakenly believe the wrong information; sometimes it is impossible to recover from these misconceptions and therefore, they never fulfill their dream of being a professional trader. Even if you are able to distinguish between the correct and false information, becoming a professional trade can take months, possibly years.

To become a professional in trading, learn the basics first. Knowing everything about trading will help you become successful is your desired career. You will also know more about the advanced topics of trading. Trading basics include information about what trading really is, which markets can be traded, knowing the contract specifications, how to place buying and selling orders, among others.

The basics of trading are factual and can be learned independently from a number of different sources. The day trading website provides all the information to learn the trading basics, and the information is accurate. If you are interested in this area but have no idea where to begin, it is recommended that you begin with knowing what trading actually means and go from there. If you are going into a particular part of trading, then you will want to learn some advanced training after learning the basics.

In conclusion, the things you should know before going to real forex trading are important to be successful. The best method for learning trade that is to learn the trading basics from the day trading website. Then, find an experienced forex trader to help you learn the style and technique. Finally, learn as much of the advanced topics of trading as necessary for your specific type of forex trading.


Source by Jackson Loh

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Making Money With Forex Trading – How It’s Done


The currency market, or more specifically the forex market, derives its name from the generic term foreign exchange market. The forex market is a decentralized global network of trading partners, including banks, public and private institutions, retail dealers, speculators, and central banks involved in the business of buying and selling money.

The forex is a spot market, which means that it trades at the current market price as determined by supply and demand within the marketplace. This differs from currency futures traded on the commodity exchange in the United States,which trades a contract price for delivery in the future. In the spot market you are trading cash for cash at the current market price.

The forex is the largest, fastest-growing financial marketplace in the world. Every trading day the forex market handles a transaction volume of nearly $3.2 trillion, according to a survey done by the Triennial Central Bank in 2007. To put that figure in perspective, the average daily volume on the forex market is nearly 20 times larger than on the New York Stock Exchange.

The need for foreign exchange is driven by travelers, multinational corporations, and governments. Tourists from the United States need euros for their European vacations; corporations such as Microsoft exchange profits made overseas into U.S. dollars. Government hold reserve currencies and manipulate the money supply while they implement their monetary policies. The forex market was created to facilitate the sale of currency to customers who intend to take delivery of the currency; however, the vast majority of trading is done by speculators seeking nothing more than profit.


Source by Hasbul Aqill

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What is Forex RSI? How to Use It


Forex trading offers a lot of opportunity and benefits for the astute and well trained traders. And understanding technical indicators and how to use them can be one advantage any trader will have in his trading strategy. There are many technical indicators in the forex trading platforms of different brokers and they can be grouped into two types of indicator 1. momentum indicator, 2. oscilators indicator. They are so many that one can get confused in making a choice of which to use and how many indicators to plot on your charting software, but remember that you only need simple indicators and a simple strategy to win in the forex market. what indicator then should one use for best result? i would recommend using any oscillator indicator, but my favorite and easiest to use is the relative strength index (rsi). The rsi indicator is an indicator that goes from 0-100 and then goes back to the water mark or center that is 50. it keeps going back and forth just like a pendulum.

How do you use RSI?
When the rsi is below 50 or its water mark this indicates that we are in a down trend, and if it is above 50 we are in an uptrend. But as we all know in forex trading nothing is black and white you should consider checking other indicators like macd or stochastic to determine the genuineness of the trend as indicated by the rsi before taking any trade or entering into any position.

The rsi typically indicate whether a currency is overbought or oversold with readings of 20-30 oversold and 70-100 overbought. The rsi indeed is a leading indicator and it can be used to know and identify the current trend of the market, but you should remember not to use it in isloation look at other indicators to confirm what rsi is saying. Trading treaties online does not involve the need for you to plot many indicator on your platform but it requires you to use simple and less indicators to trade successfully. remember the saying kiss "keep it simple stupid" it applies to the forex.


Source by John Okon

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Homemakers’ Comprehensive Guide to Trading Forex Using the Aid of Forex Trading Signal Service


Do you know that more and more homemakers today are trading Forex?

It’s no longer a secret and as a matter of fact, the number of homemakers who later become successful traders is rising fast. Despite the busy days managing everything at home, these homemakers still manage to trade Forex without abandoning their tasks and not only that, these homemakers also contribute enough to the their family financially. This story is not exaggerated at all. It’s pure reality. The good news is, believe it or not it can also be your life story.

Before you can get to their level, you must go through the whole process. Fortunately, you can choose from one of two paths-the difficult way and the wise way. The two scenarios below will help you understand the differences:

Scenario A-the difficult way

Maria is a housewife with two kids. Her husband is the backbone of the family; financially speaking. He takes home a good sum on his check every month and provided his wife and their kids all of their needs. Nonetheless, being so effective and efficient at doing her task, Maria felt that she is having too much free time around the house. As a result, she began searching for something that might be worthwhile to do and found Forex to be the suitable one for this purpose. So she started buying DVDs, home coaching, and even attended online seminars hoping that she would be able to make money consistently. Eventually she ended up spending $5,000 for the whole thing before she even started trading Forex with real account. She diligently practiced everything that she acquired from the resources that she bought. With great discipline, she finally had the confidence to trade using a real account. Maria told her husband that she is ready to trade with real account. Her husband supported her and gave her another $6,750 to open a real account. So she started her Forex trading journey carefully and conservatively because she did not want to waste her husband’s hard earned cash. A month later, her account is already up $500 making a total of $7,250. Her husband and children were very happy about this. The next month, she lost $75 so her total is now $7,175. The month after that, she added another $730 to her account so the new total is $7,905. So far, the money she spent as an investment is $5,000 (in terms of business, this is not classified as expense because you hope to bring more money by spending it) and the amount of money gained for three months is $1,155. All this happened in 6 months-3 months in training and honing her trading skills and 3 months in real trading. She relied on herself to do the trading and managed to do so and more importantly her husband and children are proud of her. It is indeed a great job.

Scenario B-the wise way

Jennifer is a homemaker with two little boys and a daughter. Her husband work from 9 to 5 and he never missed a chance to take additional tasks in order to impress his boss. Meanwhile, Jennifer herself is pretty busy with her three little ones. They are very active around the house and so, Jennifer doesn’t really have that much time to take a break during her hectic time. One day, her friend introduced her to online business and told her that she could make money from the convenience of her home without abandoning her kids. Moreover, her friend told her that she can do this even without any skill or knowledge. Out of curiosity, Jennifer asked them how. Her friend told her that there’s a service that can help her achieve this. Not only that, the service also comes with a learning opportunity. Jennifer spent some time to think about it and convinced herself that she can do this because even though she is busy she yearned to be able to do something to help build her children’s future and take some burden off her husband’s shoulder. So Jennifer talked about it with her husband and he handed her $6,200 because they don’t really have that much cash for this. Jennifer then setup a real Forex trading account with her $5,500 and subscribed to a trading signal service just as her friend told her. She paid $100 for the trading signal service and she get the help of Forex professional to do the most difficult part in trading for one month. She wanted to gradually build her account and don’t want to be reckless and greedy so she traded Forex conservatively. At the end of that month, she managed to bank $520 making her balance $6,020. It’s a good start. And then she paid another $100 for the next’s month’s service. During that month she took home $300 and raises her account balance to $6,320. Not bad. She took another $100 from the $700 that she set aside to pay for trading signal services. This time around, she added $683 and ended up with $7,003. Summing up, Jennifer set aside $700 for the purpose of paying the trading signal service and already spent $300 from it and the amount of money she added to her trading account so far is $1,503. Everything happened in a short period of 3 months and Jennifer is now getting better in her learning and soon she might be able to trade by herself and more importantly she can contribute to the family financially. Great job, Jennifer.

The moral of the story is you can do it on your own and spend a lot more time, effort and money (she needed $5,000 to prepare herself and another $6,750 to fund her real account) or you can cut the time and only prepare almost a half less money ($700 for the purpose of paying monthly subscription fees and $5,500 for the opening a live Forex trading account). Both of them aim to become a proficient Forex trader and needless to say, both of them have the same opportunity. The differences between the two paths are clear. You decide which one to choose. Now, assuming that you choose to go with the wise way, you only have to follow 3 simple steps below:

Step 1: find yourself a trusted Forex trading signal service and pay the subscription fee. This fee will grant you the ability to use their service for the next 30 days (one month).

Step 2: for the most part, you will have to wait for the trading alert to hit your email or cellphone or trading platform. Whenever good trading opportunity emerges, the service will send you a trading signal complete with entry and exit point and also stop loss level in the form of email or text message (SMS) or trade alert. This can be twice a week or even more depending on the market condition. In the mean time, you can browse the website to find trading tutorials and resources so you can learn how to become a successful trader yourself.

Step 3: once you get trading signal you need to enter the orders (open a buy or sell position and the stop loss or take profit level) exactly as written. A trading alert will include where to open a buy or sell position and also where to put a stop loss or take profit level. If the trader(s) from the service sees some changes in the market after you enter the position they will update you with another alert telling what step you need to take. Sometimes the recommendation is to exit the position or to modify your stop loss or take profit levels. This will help secure part or whole profit you have from dropping so you can maximize your profit.

Those are the only things that you need to do. To be bluntly honest, nothing is even near this level of ease and comfort in the Forex trading world. The convenience is why many people use a trading signal service. So, if you are ready to go with this path, there are several tips that can help you maximize the use of the trading signal service:

Some prerequisites before you continue…

Before you can make money or expect to do any analysis you must first familiarize yourself with the new environment. Learn as much as you can about the terms used in the industry and try to understand the basics of how the market works. You don’t have to go too deep just as long as you know how things work. Much of the information you need can be found simply by using Google and enter Forex glossary as the keywords or term. Also, you need to familiarize yourself with the trading platform that is widely used in the Forex world. Meta Trader 4 (often abbreviated as MT4) is no doubt the most popular trading platform in Forex trading. Meta Trader 5 is already on the market but the basic function is the same and MT5 is still not widely used compared to MT4. To familiarize yourself with MT4, you can go to Alpari U.S. (or Alpari UK if you are not a U.S. resident) to register a demo account and download their MT4 platform. The familiarizing phase will usually take about two to three weeks at most.

Make sure you use the same price feed or Forex broker.

It is essential that you use the same price feed that the Forex trading signal service uses. Of course the reason is because there is no central data center that feeds Forex brokers with prices. Other trading market such as the futures market has central data feed/clearing service like CME (Chicago Mercantile Exchange) that acts as the sole price feeders to futures brokers on ES (S&P 500 futures). Thus, you will the same price for ES even though you use different broker. Unfortunately this is non-existent in the Forex market. You will definitely see different price on different broker. The difference might vary from 1 to 5 pips and this is huge. It might not seem huge in the first time but over the time the difference will accumulate to a gigantic amount. If you are trading using a standard account (100K contract size) 1 pip is equal to $10 so 5 pips is equal to $50. Now, if you have a big account and trade 5 standard lots the amount that you will lose can be anywhere from $50 to $250 in a single trade. Suppose that you trade once a week with 5 standard lots the amount that you will lose over a period of 1 year is anywhere from $2,600 ($50×52 weeks) to $13,000 ($250×52 weeks). That’s a lot of money. This is why it’s crucial to use the same Forex broker that the service uses.

Stay close to your computer or cell phone.

This is also important. There are three main delivery methods used by Forex trading signal services: email, text message (SMS) and pop up alert via your trading platform. You can imagine what will happen when you are not near your computer or cell phone, right? Chances are you will miss a good trading opportunity or two. Also, you need to be mindful if you use a laptop or a notebook because there is a chance that your laptop will run out of battery so make sure you plug the cord. A blackout is rare but it is also good if you have a UPS. Sound is also important so you can hear any incoming email or text message. Last but not the least is to make sure to monitor the battery of your cell phone or smart phone’s.

Never doubt a trading alert.

The rule of thumb is to enter a trade when you receive a trade alert. Do not hesitate. Hesitation can lead to procrastination and procrastination can lead to missing trade opportunity. This is why the number one rule when you use a signal service is: never doubt or hesitate to enter a trade recommended to you. One thing that is clear in Forex trading is you never really know for how long a trend will last but you know for sure is the amount of risk that you can take. This is why you should treat every trading opportunity the same no matter how you feel about it. Riding the trend is only possible when you are in the market not outside the market.

Don’t try to modify a trading alert/signal.

This is the one subject often overlooked. You should never try to modify the trading signal. The signal comes from trader’s analysis and you might not understand his method of analysis and therefore, you should not attempt modifying the signal. When you receive a trading alert that recommends you to buy EUR/USD as 1.3000 it means you should buy at the exact price. Every pip is important because there are considerations behind every trading signal such as trading technique, risk levels, the currency pair’s unique behavior and current market condition. Thus, modifying any element in the trading signal will affect the trade outcome. That is why it is better to enter the trade just as recommended and leave the trade unless the trader update you with some changes due to market condition. The only time you can modify the entry or exit order is when you already understand the trader’s trading method.

How to measure the trading performance?

A good Forex trading signal service can deliver anywhere from 5% to 30% per month. Those figures are the average and therefore, the actual result will vary depending on your risk tolerance. If you are a risk taker, you might gain more but there is also a chance to lose more and if you are conservative trader, you will obviously gain less with reduced chance of losing. One thing you need to avoid is jumping from one trading signal service to another trading signal service. There is really no guarantee that the other trading signal service will perform better. High risk always equals high reward. The one thing that you should seek out in this business is consistency. It is far better to subscribe to a service that can consistently deliver 10% to 25% than to go with the one that deliver 50% this month and then -20% the next month. Remember, consistency is very precious in this business.

Only subscribe to a genuine Forex trading signal service.

The task of finding a genuine and great Forex trading signal service is not easy. The fact that the internet is filled with hundreds of Forex trading signal services makes it even more difficult. Every Forex trading signal service claims that they are the best and it takes time to really find the one that stood up to the claim. Picking a genuine, great service involves evaluating several factors such as reputation, result and proof. Of course it is not necessary to subscribe to each one of those services just to find the genuine one because it will cost money and time to do so. If you choose the wrong service you will not only end up in disappointment but also you will lose money not because of the fee but in the form of losing trades. Moreover, you will lose good trading opportunities and time. This is why you should only deal with a genuine Forex trading signal. A great service will benefit you in the long run and there is no substitute for a successful Forex journey. One last note, don’t fall for services that claim they have lower fee because lower fee does not equal higher profitability. You might save some bucks but you might lose a lot in unprofitable trades.

Trading Forex is not easy and it is even more difficult if you don’t know where to start. Acquiring good information is always the first important step and you already have it. The simple steps and guide provided above will help you greatly in your Forex journey as they did to other homemakers around the world.


Source by Linda Wilkinson