FOREX Trading Signals - Are They Worth It?
by Yusoff Allian
Someone new to FOREX trading may be tempted by the promise of easy profits made by companies that offer FOREX trading signals as a paid service. Indeed there are signal providers out there that do consistently provide decent profits over the long term, but the vast majority of FOREX signal providers are unable to live up to their promises. A new FOREX trader is much better served by learning how to identify entry and exit points themselves, but if they do choose to employ the services of a FOREX trading signal provider there are a few points they should be aware of before handing over their hard earned money.
Keep in mind that FOREX signal providers can charge anywhere from $50 per month to $500 per month, so you'll want to be sure that you get your money's worth. The mere fact that providers are charging money for their signals is usually enough for most professional traders to avoid their services - the thinking being that if their signals were any good they'd be keeping them to themselves and making a bundle from trading alone.
Still, as mentioned above, there are some good signal providers out there so you want to be able to determine the honest providers from the less reputable ones. An easy way to shorten your list of candidates is to focus only on the FOREX signal providers that offer you a free trial. Any provider worth their salt will allow you to try their signals out for a month without any financial obligation. While you're trying out their free service take a look at their past results - have they been consistently profitable over the long term? Any legitimate FOREX signal provider will not hesitate to show you their past results.
Let's assume at this point that you've found a FOREX signal provider that has given you a free month trial, shown positive results in the past, and offers their services at a reasonable monthly rate. Take advantage of their demo account (any broker you use should offer free demo accounts that let you use real data with fake money) and apply their signals to your fake trades. How is it performing? Are the entry and exit signals yielding generally positive results? No signal will ever be 100% accurate, so what you're looking for is a positive result over the long term. Try the signals out for the month and if you're consistently seeing profits then you've likely found yourself a winner.
It's important to realize that although you can pay others to send you FOREX trading signals you'll be much more profitable in the long run if you understand the concepts yourself. Take the time during your free month trial to fine tune your trading strategy and focus on building up your trading discipline.
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Showing posts with label Forex Traders Guide. Show all posts
Showing posts with label Forex Traders Guide. Show all posts
FOREX Trading Signals - Are They Worth It?
Tuesday, March 24, 2009 Forex Traders, Forex Traders Guide, forex trading market, Forex Trading Signals
The 3 Most Profitable FOREX Charts
Thursday, March 19, 2009 Currency Trading Course, FOReign EXchange, FOREX Charts, forex online trading, Forex Traders Guide
The 3 Most Profitable FOREX Charts
by Yusoff Allian
A basic understanding of technical analysis can propel the novice FOREX trader from a micro account to the big leagues in record time, and it really isn't that difficult to master once you comprehend the basics. At first glance all these charts and acronyms can seem daunting and can quickly scare the average novice trader away, but it's really not as complicated as it looks. Let's take a look at the three most popular FOREX charts out there right now.
The Line Chart.
This is the kind of chart that even non-traders are familiar with. It plots closing prices from one day to the next and connects the two points with a line, forming a jagged line with peaks and valleys from left to right. The general trend of a currency pair is very easy to identify as the price will either trend up, down, or remain relatively stagnant.
The Bar Chart.
The bar chart is a glorified line chart that not only shows the closing price, but also shows the opening price that day and also the high and low that the currency pair reached that day. Picture a vertical line, with the top point of the line representing the high price traded that day, and the bottom of the line indicating the low price traded that day. Each vertical line also has a horizontal line on the left side that indicates the opening price that day, and a horizontal line on the right side that represents the closing price that day. This FOREX chart is particularly useful as it's easy to identify the long term trend of a currency pair while also seeing what kind of daily variation it typically experiences.
You'll often see bar charts referred to as "OHLC" charts - Open, High, Low, and Close, for the reasons explained above.
The Candlestick Chart.
Candlestick charts are probably the most popular type of FOREX chart used by professional FOREX traders. It combines the best elements of the line chart and bar chart and adds its own unique twist. A candlestick has a vertical line, just like the bar chart, but instead of having horizontal lines on either side that represent the open and close prices it has a rectangular box in the middle of the vertical line. The inside of this box is typically white if the price closed higher than it opened, and black if the price closed lower than it opened, although you'll see various color schemes used from site to site.
Candlestick charts don't contain any extra information than a bar chart, but visually they're much easier to understand at a quick glance. You'll find that you'll be able to identify trends much quicker and recognize market reversals much easier than if you were using a bar chart.
As candlestick charts tend to be the most popular of the FOREX charts you'll find that there tends to be a lot more information available online about them, including information on candlestick patterns. These patterns have been tweaked many times over and are very handy in identifying emerging trends in a currency or stock, and it's highly recommended that you familiarize yourself with some of the more well known candlestick patterns if you want to realize some serious profits in FOREX trading.
by Yusoff Allian
A basic understanding of technical analysis can propel the novice FOREX trader from a micro account to the big leagues in record time, and it really isn't that difficult to master once you comprehend the basics. At first glance all these charts and acronyms can seem daunting and can quickly scare the average novice trader away, but it's really not as complicated as it looks. Let's take a look at the three most popular FOREX charts out there right now.
The Line Chart.
This is the kind of chart that even non-traders are familiar with. It plots closing prices from one day to the next and connects the two points with a line, forming a jagged line with peaks and valleys from left to right. The general trend of a currency pair is very easy to identify as the price will either trend up, down, or remain relatively stagnant.
The Bar Chart.
The bar chart is a glorified line chart that not only shows the closing price, but also shows the opening price that day and also the high and low that the currency pair reached that day. Picture a vertical line, with the top point of the line representing the high price traded that day, and the bottom of the line indicating the low price traded that day. Each vertical line also has a horizontal line on the left side that indicates the opening price that day, and a horizontal line on the right side that represents the closing price that day. This FOREX chart is particularly useful as it's easy to identify the long term trend of a currency pair while also seeing what kind of daily variation it typically experiences.
You'll often see bar charts referred to as "OHLC" charts - Open, High, Low, and Close, for the reasons explained above.
The Candlestick Chart.
Candlestick charts are probably the most popular type of FOREX chart used by professional FOREX traders. It combines the best elements of the line chart and bar chart and adds its own unique twist. A candlestick has a vertical line, just like the bar chart, but instead of having horizontal lines on either side that represent the open and close prices it has a rectangular box in the middle of the vertical line. The inside of this box is typically white if the price closed higher than it opened, and black if the price closed lower than it opened, although you'll see various color schemes used from site to site.
Candlestick charts don't contain any extra information than a bar chart, but visually they're much easier to understand at a quick glance. You'll find that you'll be able to identify trends much quicker and recognize market reversals much easier than if you were using a bar chart.
As candlestick charts tend to be the most popular of the FOREX charts you'll find that there tends to be a lot more information available online about them, including information on candlestick patterns. These patterns have been tweaked many times over and are very handy in identifying emerging trends in a currency or stock, and it's highly recommended that you familiarize yourself with some of the more well known candlestick patterns if you want to realize some serious profits in FOREX trading.
A Novice Forex Traders Guide To Fundamental Analysis
Monday, February 23, 2009 Forex Traders Guide, Fundamental Analysis, Novice, technical analysis
A Novice Forex Traders Guide To Fundamental Analysis
by Monica Hendrix
If you are new to forex trading you have access to a lot of fundamental analysis as the click of a mouse from banks brokers and news wires you can look at and trade upon it - let's look at forex fundamental analysis and how to use it.
A forex trader, who makes trades based upon fundamental analysis, will look at the supply and demand situation in relation to the currency studied, and try and predict the impact of the various factors on its movement and they include:
* Economic growth and economic policy
* Interest rate outlook
* Balance of payments
* Employment
* Trade deficit
* Political Factors
To name but a few but there is a problem when trying to use fundamental analysis:
The facts are there for all to see but price is ultimately decided by millions of different opinions such as you and me and we all draw our own conclusions from the facts and numbers. Furthermore all the news is available in seconds anywhere and this means it is discounted.
With human nature involved and the fact that fundamental analysis is quickly discounted it is almost impossible for the novice trader to execute trading signals on.
If you want a graphic example of how forex fundamental analysis won't help you make money consider this fact:
The ratio of winners to losers is the same today as it was 50 years ago and this is despite better news more of it and faster communications. So if you are thinking of trading it think again.
A far easier way is to study charts and use technical analysis.
A technical approach takes into account both the supply and demand situation, as well as investor psychology. We can see the impact of both at once and reflected in the price.
Many traders don't believe that technical analysis works, as it can't take into account the fundamentals but this is not correct:
Technical analysis assumes that all known fundamentals are going to show up instantly in price action. Technical analysis therefore is simply a short cut way of taking into account the fundamentals and more importantly takes into account human psychology.
The equation for market movement is:
Supply and demand factors + Human perception (investor psychology) = Price action
So if you are thinking of trading using forex fundamental analysis, you can save yourself a lot of time and increase your chances of success, by taking a technical approach - that reflects ALL the factors that influence price and increase your odds of success.
With technical analysis you act on the reality of price - not opinions and therefore trade the truth and not what you or anyone else thinks it might be.
by Monica Hendrix
If you are new to forex trading you have access to a lot of fundamental analysis as the click of a mouse from banks brokers and news wires you can look at and trade upon it - let's look at forex fundamental analysis and how to use it.
A forex trader, who makes trades based upon fundamental analysis, will look at the supply and demand situation in relation to the currency studied, and try and predict the impact of the various factors on its movement and they include:
* Economic growth and economic policy
* Interest rate outlook
* Balance of payments
* Employment
* Trade deficit
* Political Factors
To name but a few but there is a problem when trying to use fundamental analysis:
The facts are there for all to see but price is ultimately decided by millions of different opinions such as you and me and we all draw our own conclusions from the facts and numbers. Furthermore all the news is available in seconds anywhere and this means it is discounted.
With human nature involved and the fact that fundamental analysis is quickly discounted it is almost impossible for the novice trader to execute trading signals on.
If you want a graphic example of how forex fundamental analysis won't help you make money consider this fact:
The ratio of winners to losers is the same today as it was 50 years ago and this is despite better news more of it and faster communications. So if you are thinking of trading it think again.
A far easier way is to study charts and use technical analysis.
A technical approach takes into account both the supply and demand situation, as well as investor psychology. We can see the impact of both at once and reflected in the price.
Many traders don't believe that technical analysis works, as it can't take into account the fundamentals but this is not correct:
Technical analysis assumes that all known fundamentals are going to show up instantly in price action. Technical analysis therefore is simply a short cut way of taking into account the fundamentals and more importantly takes into account human psychology.
The equation for market movement is:
Supply and demand factors + Human perception (investor psychology) = Price action
So if you are thinking of trading using forex fundamental analysis, you can save yourself a lot of time and increase your chances of success, by taking a technical approach - that reflects ALL the factors that influence price and increase your odds of success.
With technical analysis you act on the reality of price - not opinions and therefore trade the truth and not what you or anyone else thinks it might be.
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