FOREX Trading Signals - Are They Worth It?

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.

Currency Trading Strategy

Currency Trading Strategy

by Paul Bryan

Developing your own strategy for a successful online currency trading is as important as your investment decisions. Online currency trading without a strategy is to rely entirely on chances for your success or failure. Making the right trading decisions and developing a sound and effective trading strategy is therefore the most important foundation of forex trading.

For developing an online forex trading strategy, you should have a working knowledge of forex, how the market works, different methods of technical analysis, and knowledge of some of the popular technical studies. A successful trading involves strict guidelines for return on investment as well as an optimized risk management. With the rise of the internet, forex trading is almost instantly. Your online currency trading strategy therefore should be full proof to handle instantaneous decisions.

It is advisable to form the online trading strategy based on some technical analysis, such as, Simple Moving Average (SMA). With huge online and conventional resources, with some research you can understand the theory of many such technical analyses. For example, you can formulate a set of discipline like: if the price of the currency crosses above a 12-period SMA, you will treat it as a signal to buy at the market; when the currency price crosses below the 12-period SMA, you will 'stop and reverse'. So you will always have either a long or short position after the first signal.

Many seasoned traders combine more than one strategy for their online forex trading. For example, they use SMA and apply other indicators to support their assumptions. These indicators work as a filter for them. You may formulate your online forex trading strategy based on technical analysis to find out support and resistance levels of the market. The market tends to trade above the support levels and below the resistance levels. If you find that a support or resistance level is broken, the market will then follow through in that direction. Therefore, if your online forex trading strategy helps you in finding out these breaks you can invest in the direction of the market.

The best way to be a successful forex trader is to study and get experience. There are many web sites with free articles, seminars, forums, which can help you in developing your own forex trading strategy. Simple logic and rational thought process will strengthen your strategy and earn huge profit from the trading. Few tips for preparing your strategy will be:

· Always trade with the trend. · Never risk all your trading capital in a single trade. · Follow strict discipline to limit your loss. · Whenever you are in doubt, get out of the trade.

In this highly volatile and liquidated forex trading market, a strong strategy, which is free from any emotions, will ensure high profits for you.