What is Forex Trading

What is Forex Trading:

Forex Trading is trading currencies from different countries against each other . Forex is an interbank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating ones . It is a set of transactions among forex market agents involving exchange of specified sums of money in a currency unit of any given nation for currency of another country at a rate agreed to specified . date In exchange , the exchange rate of one currency to another currency is determined simply by supply and demand - exchange to which both parties agree .

In fact, the Forex is the financial game between the Bulls and Bears .

The major currency pairs are:

EUR / USD

GBP / USD

USD / JPY

USD / CHF

USD / CAD

AUD / USD

And these are the 6 best forex markets.

What are Forex Signals ?

Forex signals are indicators that let you know when it's the right time to buy or sell a currency pair . They offer a glimpse of what is happening in the Forex market without having to follow the Forex trends throughout the day. If you are self-employed or employed by another company , Forex trading is probably a part- time for you. You will not have time to sit at the computer and monitor the forex market all day. Forex signals can be delivered to you throughout the day by professional traders to give you a heads-up on what's happening in the market . You can receive the signals , and then place the signals of purchase or sale.

Forex signals are basically "suggested" buy and sell points with price targets and stop-loss levels offered by suppliers FX signals for traders. They can be delivered by e- mail, instant messaging systems, currency trading live mobile phone or directly to your MetaTrader Forex signal on your desktop.

Forex trading is a risky business , and it takes some time to master the art of Forex trading signals . There are a number of fx signal providers but before you choose, you must ensure that you have done your homework . Always ask for the free offer signals for 3 to 5 days and test these signals in your demo account.

The main features of Forex trading signals to know are ;

Cost: monthly

Complexity: Simple " one email per day " or full service

Control: You retain full control or signal provider trades your a / c to

Most Forex trade signals charge a very modest subscription, typically in the region of USD $ 80 - $ 400 per month .

If you are new to forex trading , you probably realize how important it is to take the right trading decisions . A fake commercial movement can significantly hurt your wallet quite a good movement can make huge profits. This is why trading signals are so important. Once you 've tried a Forex demo account for practice and created a strategy that works for you , you can add services trading signals as a useful tool in your Forex trading.

With online Forex , finding a trading signal service is easier than ever.

In their simplest form a Forex trading signal will send you a Forex alert once a day commercials set ups for the next 24 hours.

Some forex signal providers offer a free trial service , allowing currency traders to sample the signals to assess their value. This is a useful step because it allows the operator to examine the quality and reliability of the signals before paying money. This is a crucial element in the research process, and weeds on providers who want money upfront because they are not confident in their ability to call profitable trades. This is a good service that you can try it free for 3 to 5 days.

Various fx signal providers offer some free services with the headlights themselves . Look for a fx signal company that offers email support , phone support and even mentoring to their clients. This is a great value , especially for new traders.

They attribute their time helping traders taking buy / sell decisions positions. Traders rely and trust the recommendations of the professional suppliers of signals , while the decision to invest in the Forex market

Forex signals are not intended to be a magic solution to all your problems of Forex . They are designed to inform you about the market.

The business calendar Forex is extremely crucial , a trader can gain or lose millions or even more depending on his actions in a timely or untimely . Moreover, being the largest market in the face of the earth - it generates activity nearly 3 billion USD, it operates around the clock, around the world , which makes it impossible for a trader to remain vigilant while time on market fluctuations and likely changes therein. Therefore, a trader must alarms and indicators to obtain knowledge about the potential opportunities and points of probable height . Hence the need for signal or Forex alerts . Basically Forex alert signal or communication or reveal the operator indicating it is time to buy / sell and the price appropriate to pay / ask . Most of the time , these signals and alerts are provided by trained professionals , either individual or corporate .

When choosing a Forex signal service , or that the company offers the type of alert signals you need . Each person is different . Some require computer alerts or email, while others are not accurate Forex signals are made to professional traders and that the new operators. The best Forex trading system signals will cover several situations in the Forex market. For example, the best Forex trade signals will cover all major currencies like GBP, USD , EUR and at any time the market is open , not only to the specific situation . Just get the full value of your forex trading, you must know what is happening with regard to all major currencies . The Forex system should also be able to give you at least 1-3 Forex trading signals alerts per day .

Some Forex trading signals are high volume scalpers , calling many trades in a day to take advantage of a handful of pips on each . Others call only a few transactions per day , to take 20-80 pips on every single transaction.

Providers Forex trading signals help you minimize the risks and losses in trade.

Forex signals are usually given on a daily updated and all are subject to the market analysis of the facts and the flow behavior and not on mere hearsay and other crops .

The signals are calculated and generated by the use of different indicators such as trends, moving average, Elliott waves, Bollinger Bands, Fibonacci series , etc. In spite of this , some using strategies such as :

Pip Maximizer 1 Method

Pip Maximizer Method 2

Pip inversion method

Pip Divergence method

Instant method Pip

Pip retracement method

Quantum Pip strategy

... to provide efficient and accurate signals .

The next question I would raise is the abundant choice of Forex signals from which we can choose . Due to the variety of service providers, they offer different services , we must be aware . The first type of Forex signals provider will just send commercial e-mail alerts , often daily , sometimes at several intervals throughout the day. Thus , you need a laptop device receiving mail ready at any time to gain the most Forex trading signals .

The guy next to consider are EA / Expert Advisors. These types of signals are not good at all because they are oriented computer programs that can ruin your money in a few trades. Fortunately , this is not a big problem today because most traders reading devices e -mail . The most crucial aspect regarding the format you receive the signals , is to ensure that you receive immediately , and have the ability to act on them immediately - so you have immediate access your forex brokerage account and place the trade as soon as humanly possible .

A unique advantage of Forex trading signals is that it provides guidance and discipline in a Forex trader . Service providers signals Forex Profits displays alerts when the conditions are met for trade. They use a technology that constantly monitor all major currency pairs for generating technical indicators.

Forex signal generators produce Forex signals which are indicators of ideal trading opportunities . These are some algorithmic patterns that have been observed on currency transactions with success throughout the years. These Forex signals are then fed to the program or automated Forex EA Expert Advisors. The program will then either make Forex trading decisions for the individual while he / she is away from the computer or individual advice on what to do . Forex EAs act like wizards which monitor currency ratings through online Forex Trading Platforms . We can look at Forex signals as triggers of commands that allow the automated system to operate.

Forex signals can add immeasurably to the benefits of a Forex trader.

How to get Forex signals :

Forex signals services are available to provide signals to you around the clock . These services usually have professional traders who monitor the market / 24 7 and provide you with updated information . These services often charge a monthly or annual subscription fee for their services. The methods used to provide Forex signals you can vary from one service to another. The signals can be sent by e -mail alerts on your phone or laptop , page by page, or even a pop-up software system that will show on your computer screen each time a signal is sent. The services also vary in how they present information to you . Some provide real-time graphics to give you a better idea of ​​what is also happening in the market .

Schedule for which the Forex trading signals are generated is equally important . Few trading signals can be valid only for a few minutes or an hour , others may have recommendations that are valid for a day or more . If providers Forex trading signals generate signals for shorter time , you must monitor the market frequently.

Some providers of Forex signals offer additional services like email or mobile alerts . The service provider must have the technical support end- to - end for customers.

Even experienced traders calling your trades , it's prudent risk management to never risk more than 3% of your initial capital on any one trade , preferably only 1%. So for example, if your initial capital (or to put it differently , the maximum you can afford to lose) is say 5000, the size of the position you take on each transaction must be such that, if the trade hit your stop loss , your maximum loss would be no more than 1 % x 50 = 5000 .

Forex signals providers Forex make business a little easier for traders , especially those who are relatively new in the business. Forex signal generation and delivery can be manual or automated and provides input / output points of the series of exchanges for large or already chosen currency pairs. In the system of signal generation of a manual signal simple exchange is provided by a single provider . In the system of automatic signal generation , the Forex system not only intimate and trade alerts to enter or exit a trade, but sometimes is the case by running in sync with the bank or broker the trader.

Initially Forex alerts and usually come in the form of telephone calls and faxes signals. Now that we have entered the era of the information revolution that gave rise to the incredibly advanced digital technology, Forex and alert generation and disposal system signals also increased and become much more sophisticated and fast . However, these alerts in the form of emails , SMS (Short Message Service allows you to send text messages to mobile devices ) , or desktop software . However, with signals of Forex trading, there is no opportunity to negotiate on your behalf. It is quite possible to learn the mental aspects of trading , following a set of rules and not to deviate from these rules.

Many Forex trading signals provide you with a complete set of instructions to take the trade . Fair signal has multiple outputs , which allow an operator to make money on the table in small steps . Therefore , allowing the currency trader to enter all these prices in its trading platform when it receives signals , then turn off the computer .

As with any purchase , it is essential that the trader is first research in the service of more effective Forex signal trading him or her. This involves a lot of painstaking research and reading various reviews and testimonials of service. Before leaving, finally, the trader is strongly advised to practice using Forex trading signals on a demo account first, so that the trader can fully test the profitability of the signals. This has an added benefit for a new suit, because it will allow the operator to become familiar with currency trading platform , and reduce the possibility of errors .

Whenever possible , opt for a free demo account and then try your forex signals for a few days before becoming a paid member . Forex trading involves some planning and a strategy to prepare for a steep learning curve before trading with real money !

I'll start by telling you some cool facts on the forex market.

As you probably already know , the Forex stands for " foreign exchange market . " This market is concerned with the buying and selling of currencies of almost all countries of the world. This market is GREAT! So great , in fact , it is difficult to wrap your mind around the size of it .

Listen . The average daily volume FOREX is :

Nearly $ 5 billion per day !

I 'll try to make that house for you : The New York Stock Exchange has a daily volume of about 50 billion dollars. This means that the FOREX is 100 times larger than the NYSE

In fact, the daily volume FOREX is three times the size of all other investment markets combined !

Despite its size, the Forex does not have a physical location or central office. It operates through an electronic network of individuals, banks and companies that specialize in trading of one currency against another .

Almost all currency transactions are executed on the Internet by someone sitting at a computer with a high speed connection . So if you do not like working with a computer, you might as well stop reading ... because ... you will be left out.

Still with me ? Good.

Only 24 hours of financial

Market worldwide

Because FOREX does not have a physical location or central , it is able to operate on a 24 hour basis leapfrog from one time zone to another in the major financial centers of the world .

The Forex market actually follows the sun around the world ... because ... as a country moves closer to the day , another just opened . This market is open 24 hours a day , six days a week from 5:00 PM Sunday (East Coast Time) to 16:00 Friday ( East Coast time ) . This 24-hour access combined with its huge volume of transactions makes this ...

Most liquid

Market on earth !

With the exception of Saturdays, you can enter or exit the forex market at any time day or night . This market has virtually no gaps whatsoever and your stop- loss orders is almost guaranteed.

Can you imagine that? The multi -billion dollar liquidity , combined with access to trading 24 hours guarantee your stop-loss orders will be executed without slippage virtually.

Just try to get that kind of guarantee from your broker !

Stocks, futures and options can not offer this guarantee because the limited opening hours create frequent gap opens . Almost all Forex brokers to ensure that their hours coincide with the hours of operation of the global foreign exchange market .

Let's see, what else?

Oh, yeah, we can corner the market . The foreign exchange market is so huge and has so many participants in the world that no individual or entity ... not even a central bank ... can control the market for a significant period of time .

more ,

There is no insider trading !

Due to the large size of the global foreign exchange market and its non- centralized nature , there is no chance for interruptions caused by insider trading. There is less risk of fraud in the FOREX than in any other investment market . Best of all forex can never be zero, but stocks may become zero and the majority of options expire worthless .

There are no commissions . Yeah, you read that right . Not fee charges closing exchange , no administration fees , no brokerage fees. All this adds up to a cost of sales transaction very low . If you select your broker properly, your trip transaction costs could be as low as 0.07 percent .

And knowledge, a very desirable by-product of high liquidity is almost instantaneous transactions executed at lightning speed . You can leverage your trades by a factor of 50 to 1 100 to 1 400 to 1 and even .

Not only that, you can trade with a very low margin of safety relative to the disastrous potential of margin trading in other financial markets. In addition, it is income tax free if the country in which you live is no tax on the capital gain.

And finally, if you really have a lot of currency exchange , your potential financial reward is so large that it can make your head swim!

As an experienced researcher , my idea is to learn and share what I can with my readers. Stay tuned for more ideas for business, travel and career that I love to write about it and more ...

I have the love and passion for the business that force me to spend countless hours to learn , experiment and perfect the art and science of negotiation. My ultimate goal is to help you live the life you deserve. I know how it is , most people work hard for a living , yet it feels like an endless treadmill . After paying the bills , it does not seem to be enough left over to enjoy what life has to offer. I know exactly how it feels , because I was there once . I did my research and I found out how the world's richest people had made ​​their fortunes . I modeled my efforts on their example, and invested time , money and energy to learn everything I could about the negotiation