How to Use a Forex Trading Signal
by Ryan Lee
Forex trading signals are triggered when technical conditions signal a good trading opportunity. Email and SMS (text message) are popular delivery methods for forex trading signal alerts, but Web-based option can often be best if you're at your PC when the signal emerges.
For example, some forex trading signal services have automatic pop-up software to indicate the perfect entry (or exit) point of a trade. These will often include candlestick currency charts that may flash or blink so long as the entry (or exit) point remains valid. If you trust the service provider and you don't have any conflicting information telling you the trade is bad, right then is the perfect time to execute the trade.
But other forex trading services specialize in catering to traders who have medium- or long-term strategies, rather than short-term. A medium- or long-term trade may have a forex trading signal that remains valid for an entire day (or longer), so for traders specializing in longer-duration trades, these forex trading signals services can be delivered via email or SMS at no detriment.
Another way to use signals is to pair them with a service that automatically executes your trades. This can be a risky prospect for traders who prefer to use forex trading signals as mere recommendations and like to do their own homework before making their trades, and such services are better for short-term traders who don't have time to do their own analysis before pulling the trigger on a trade, anyway. The good news is that, thanks to modern technology, forex traders have the option to choose which style of trading -- and which style of corresponding forex trading signals -- works best for them.
Some forex trading signal services allow you to sign up for a free trial; usually consisting of ten or fourteen days. Take advantage of these free trials to make sure your style of trading is compatible with their forex trading signals. If you are new to the forex market, then you can sign up for a free trial and use the signals with a free "practice" account in which you trade "demo money". This way you can learn how to use signals without undue risk.
But ultimately, if you want to make money in the forex market, you're going to have to risk money in a real account, and unless you are incredibly good (or lucky), you're probably also going to have to spend money on a good forex trading signal service. The forex market is not for passive investors -- it is for active traders who wish to rely solely on their wits... And a little help from forex trading signals, of course!
แสดงบทความที่มีป้ายกำกับ FOREX trading account แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ FOREX trading account แสดงบทความทั้งหมด
วันศุกร์ที่ 11 มกราคม พ.ศ. 2551
วันอาทิตย์ที่ 6 มกราคม พ.ศ. 2551
Create Your Own FOREX Trading System In 5 Easy Steps
Create Your Own FOREX Trading System In 5 Easy Steps
by Yusoff Allian
A quick search on your favorite internet search engine for the phrase "FOREX trading system" will yield thousands of results, all of which will try to convince you that theirs is the only sure-fire profit making system available. The truth of the matter is that yes, some or most can make you money, but you don't need to pay someone else to teach you something that's really pretty simple to create for yourself. At its core your FOREX trading system needs to be able to spot trends early and also be able to avoid sharp rises or falls due to a particularly volatile market. At first glance this may seem like a difficult thing to accomplish and to be honest no FOREX trading system will perform both functions flawlessly 100% of the time. However, what we can do is design a trading system that works for the vast majority of the time - this is what we'll focus on when designing our own FOREX trading system. So, what elements do we need to consider for our custom system? The most important criteria are as follows:
1. What kind of trader are you? Do you like to follow long trends, or are you glued to your charts for 8 hours straight per day? If you're new to FOREX trading it's suggested that you stick to long term trading as it's far easier to spot trends and cut your losses when compared to day trading.
2. Find an indicator you're comfortable with. Knowing when to buy is key to generating big profits, so it's important to understand some of the key indicators and how they can identify trends. Moving averages are probably the easiest indicators to work with and can be very useful in recognizing emerging trends. A common tactic is to use two moving averages, one slow and one fast, and wait for the fast average to pass above or below the slow average. This is commonly known as the moving average crossover technique. As with everything else in our FOREX trading system it's simple, easy to understand, and effective.
3. Risk Management. Successful FOREX traders understand that you *will* lose money at some point or another, no matter how effective your FOREX trading system is. You will always want to use a stop-loss on all your trades, but the amount risked will vary from person to person based on their experience and available capital. Knowing where to set your stop loss can be tricky - you want to limit how much you could possibly lose so you'd be tempted to set a very small range, but at the same time you want to allow for short term rises and falls so that you don't exit your position too early.
4. Know when to get out. Knowing when to exit a trade can be just as tricky as knowing when to enter, but for your custom FOREX trading system you want to pick one way that you're comfortable with and just stick with it. One simple technique is called the 'trailing stop' technique, and all this entails is updating your stop loss as your position increases in value. Another popular method used in many FOREX trading systems is to set a target and get out when that target is reached. This can be based on support or resistance, or simply based on a certain number of pips. Find a method you're comfortable with and stick with it.
5. Test your FOREX trading system. So you now have a trading system that tells you when to enter and exit a trade, so see how it performs using real data. Find historical data for a currency you've thought about trading, and analyze the charts. Apply your FOREX trading system to the data you see in the charts and write down the results. Was the system effective? Would you have turned a profit or a loss? Try your trading system on several different charts and record the results. If you've got a winning system then it's time to move onto live data via a demo account. Practice makes perfect and you don't want to risk real money until you're confident your FOREX trading system can provide you with decent profits over time.
by Yusoff Allian
A quick search on your favorite internet search engine for the phrase "FOREX trading system" will yield thousands of results, all of which will try to convince you that theirs is the only sure-fire profit making system available. The truth of the matter is that yes, some or most can make you money, but you don't need to pay someone else to teach you something that's really pretty simple to create for yourself. At its core your FOREX trading system needs to be able to spot trends early and also be able to avoid sharp rises or falls due to a particularly volatile market. At first glance this may seem like a difficult thing to accomplish and to be honest no FOREX trading system will perform both functions flawlessly 100% of the time. However, what we can do is design a trading system that works for the vast majority of the time - this is what we'll focus on when designing our own FOREX trading system. So, what elements do we need to consider for our custom system? The most important criteria are as follows:
1. What kind of trader are you? Do you like to follow long trends, or are you glued to your charts for 8 hours straight per day? If you're new to FOREX trading it's suggested that you stick to long term trading as it's far easier to spot trends and cut your losses when compared to day trading.
2. Find an indicator you're comfortable with. Knowing when to buy is key to generating big profits, so it's important to understand some of the key indicators and how they can identify trends. Moving averages are probably the easiest indicators to work with and can be very useful in recognizing emerging trends. A common tactic is to use two moving averages, one slow and one fast, and wait for the fast average to pass above or below the slow average. This is commonly known as the moving average crossover technique. As with everything else in our FOREX trading system it's simple, easy to understand, and effective.
3. Risk Management. Successful FOREX traders understand that you *will* lose money at some point or another, no matter how effective your FOREX trading system is. You will always want to use a stop-loss on all your trades, but the amount risked will vary from person to person based on their experience and available capital. Knowing where to set your stop loss can be tricky - you want to limit how much you could possibly lose so you'd be tempted to set a very small range, but at the same time you want to allow for short term rises and falls so that you don't exit your position too early.
4. Know when to get out. Knowing when to exit a trade can be just as tricky as knowing when to enter, but for your custom FOREX trading system you want to pick one way that you're comfortable with and just stick with it. One simple technique is called the 'trailing stop' technique, and all this entails is updating your stop loss as your position increases in value. Another popular method used in many FOREX trading systems is to set a target and get out when that target is reached. This can be based on support or resistance, or simply based on a certain number of pips. Find a method you're comfortable with and stick with it.
5. Test your FOREX trading system. So you now have a trading system that tells you when to enter and exit a trade, so see how it performs using real data. Find historical data for a currency you've thought about trading, and analyze the charts. Apply your FOREX trading system to the data you see in the charts and write down the results. Was the system effective? Would you have turned a profit or a loss? Try your trading system on several different charts and record the results. If you've got a winning system then it's time to move onto live data via a demo account. Practice makes perfect and you don't want to risk real money until you're confident your FOREX trading system can provide you with decent profits over time.
วันเสาร์ที่ 29 ธันวาคม พ.ศ. 2550
Mini FOREX trading
Mini FOREX trading
by Han Ming
Open an online FOREX trading account first before considering of betting big if you're a beginner. FOREX trading is risky if you don't have enough experience. If your intention is to get some experience and not interested in making big investment yet, you can start by investing $50 - $100 first and see how it goes. Starting to trade with such small amounts is the best way to get familiar with FOREX marketplace. It is much better than operating 'DEMO' accounts, where you're not really risking your money and there are no return at all using 'DEMO' accounts.
You can start an online FOREX trading account and some website let you start from as little as $50. Do not laugh - mini accounts are a good ways to get your feet wet without taking a bath. Also, mini FOREX trading does not suffer the illiquidity of many futures mini-contracts, as everyone feeds from the same currency "pool". Not only that, you can start trading in less than 5 minutes. You can immediately register, deposit the margins of the deal and start running.
Mini accounts are a great way to get started and test your basic trading expertise. Trading with small amounts is much more telling than paper trading. Remember to choose a FOREX trading platform with competitive spreads. This way will save your FOREX trading costs. It can be as low as 5 pips, depending on how much money you want to trade.
I would want to give a few tips before you start an online FOREX trading account. By nature everyone is emotionally attached to their money. Since you're trading with funds, you must cultivate an attitude of emotional detachment from your FOREX trading account. Otherwise, each sour trade will infest you with stress, worry and fear. Just be calm when you trade and you can do much better.
by Han Ming
Open an online FOREX trading account first before considering of betting big if you're a beginner. FOREX trading is risky if you don't have enough experience. If your intention is to get some experience and not interested in making big investment yet, you can start by investing $50 - $100 first and see how it goes. Starting to trade with such small amounts is the best way to get familiar with FOREX marketplace. It is much better than operating 'DEMO' accounts, where you're not really risking your money and there are no return at all using 'DEMO' accounts.
You can start an online FOREX trading account and some website let you start from as little as $50. Do not laugh - mini accounts are a good ways to get your feet wet without taking a bath. Also, mini FOREX trading does not suffer the illiquidity of many futures mini-contracts, as everyone feeds from the same currency "pool". Not only that, you can start trading in less than 5 minutes. You can immediately register, deposit the margins of the deal and start running.
Mini accounts are a great way to get started and test your basic trading expertise. Trading with small amounts is much more telling than paper trading. Remember to choose a FOREX trading platform with competitive spreads. This way will save your FOREX trading costs. It can be as low as 5 pips, depending on how much money you want to trade.
I would want to give a few tips before you start an online FOREX trading account. By nature everyone is emotionally attached to their money. Since you're trading with funds, you must cultivate an attitude of emotional detachment from your FOREX trading account. Otherwise, each sour trade will infest you with stress, worry and fear. Just be calm when you trade and you can do much better.
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