FOREX Trading
• What Is
FOREX?
• FOREX
Or Futures?
• FOREX
Or Stocks?
•
FOREX Trading for
Beginners
• FOREX
Terms To Know
•
Preparing for FOREX
Trading
• Is
FOREX Trading Risky?
•
The Philosophy of FOREX
Trading
•
FOREX and Fundamental
Analysis
•
Tools for FOREX Trading
•
Trading Strategies for
FOREX
• Trading Systems
for FOREX
•
Reading and Understanding
FOREX Quotes
•
FOREX Profits and Losses
•
FOREX Technical Analysis
Part 1
•
FOREX Technical Analysis
Part 2
•
FOREX Trading Brokers
• The
FOREX Margin
•
What Are Currency Options?
•
What Are FOREX Signals?
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Online FOREX Trading
What Are FOREX Signals?
While day traders in the stock market often sit in front of their computers
watching the markets the entire time the markets are open (approximately
seven hours a day, five days a week), this is hard for FOREX traders, because
the market is open twenty-four hours a day, five days a week. But in order
to be successful, one must watch the markets so that they can see when to
enter and exit the market.
Obviously, you don't want to sit in front of your computer twenty-four hours
per day, five days a week. For this reason, you should automate your trades
by using stop orders and limit orders. This keeps losses to a minimum. But
on the other hand, it may prevent you from earning as much profit as you
might have when your limit order goes into effect.
You can also sign up with a FOREX signal service. Such as service will watch
the market for you, and analyze it, and then send the results to your email,
to your cell phone, your SMS, to your pager, or directly to your desktop.
FOREX signal services must be paid for either monthly or yearly, and some
brokers offer this service as well.
FOREX signals are usually limited to specific currency pairs, with the most
common being USD/CHF, USD/JPY, GBP/USD, and EUR/USD. You may be able to add
additional currency pairs to your service as well. Signals come from the
technical analysis of the market, and a combination of indicators. The
information is analyzed to identify optimal exit and entry points, and that
information is then sent to you. You may even have the option of having the
service place the trade order on your behalf as well.
With a FOREX signal service, you will receive buy signals and sell signals.
A sell signal may be sent when the prices falls below average, and you may
receive a buy signal when the price rises above average. The Moving Average
Convergence Divergence (MACD) is also used, signifying a buy should be made
when the signal is above the line, and a sell made when the signal is below
the line.
Services also use volume indicators to find new trends or uncertainty in
the market. Bollinger bands are used to find potential changes. Other indicators
such as momentum and volatility are also measured, so that singals that are
derived from other sources can be reinforced.
Just because signals can be sent to you that tell you when you should buy
or sell, this does not negate the risk. Nothing is a sure thing. Signals
can only give you 'advice,' but the signal is not guaranteed to be accurate.
A FOREX signal service can cost as little as $50 per month, and as high as
$200 per month. Even with the use of a signal service, you still need to
be informed and educated where the FOREX market is concerned. Advice is just
that - advice. You must have the ability to knowledgably analyze that advice
before acting on it.
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