Forex (Foreign Exchange, Forex
currency exchange) simply means the buying of one currency and selling another
at the same time. In other words, the currency of one country is exchanged for
those of another. The currencies of the world are on a floating exchange rate,
and are always traded in pairs Euro/Dollar, Dollar/Yen, etc. In excess of 85
percent of all daily transactions involve trading of the major currencies.
Forex trading requires a
constant monitoring. You can win the forex market if you can monitor the forex
market all the time and should be able to analyze it. Trading forex needs a lot
of research. Forex trading needs full time effort. Its not so easy to win the
forex market just by being a part time trader.
Whether it is full time trader
or a part time trader, forex market needs a lot of technical analysis and
fundamental analysis. Doing fundamental analysis is really very easier than
doing the technical analysis.
A technical analysis is founded
on three suppositions:
1. Movement of the market
considers everything;
2. Movement of prices is purposeful;
3. History repeats itself.
2. Movement of prices is purposeful;
3. History repeats itself.
Basically technical analysis
should be viewed as the study of historical prices at the market in order to
forecast or even know with greater probability in what direction the future
prices will move. Technical analysis needs various technical indicators,
different types of charts, graphical methods and analytical methods.
Technical analysis needs a lot
of time, concentration and patience. At the end of technical analysis, you get
an idea when to buy the forex and when to sell the forex in order make the
profits.
As a part time trader, you
cannot keep much time for technical analysis. It's the work of full time
traders. But in that case, how could a part time trader win the forex market?
Forex market is growing faster
and faster than any other market in the world. Many latest tools have also
evolved for the forex market. The solution for the part time traders is to get
the forex trading signals.
Trading signals are time-tested
indicators of trends in the forex market. Breakouts, support levels and
resistance levels, envelope patterns, currency pairs near moving averages,
stochastic lines, oscillators, Fibonacci levels - application of these
indicators enable forex traders to make a profitable entry into the market.
There are about 26 such indicators - reason enough for investors to rely on
seasoned forex brokers.
In other words, Forex Trading
Signals are selling and buying recommendations given by any third party. Such
parties could be brokers, brokerage firms, analysts, traders, forex related
software tools, etc. Different parties offer different signals, tips, and
trends for trading in forex markets. It is best to collect daily Forex signals
from reliable sources. A combination of fundamental and technical analysis
forms the foundation of accurate Forex signals.
In the other way, the part time
traders should either subscribe for signals with any forex expert organization
or they should have some software tool which would do the technical analysis
for them and give the signals.
If you subscribe for forex
signals with any forex expert organization, the forex signals cost anywhere
from $50 to $200 a month. It's up to the individual trader to decide if the
cost is worth it. Don't think that signals can take the place of trader
education: they are advice, and if you don't have the knowledge to analyze the
advice, you should go back to the books before using a signal service.
Now coming to the forex trading
software tools, there are some tools which will be available to you provided by
your forex broker and also some independent tools (automated forex trading
systems) which are independent on any of the brokers. These automated forex trading
systems generate the signals for the day that when to buy the forex and when to
sell the forex and automatically place orders for your broker without your
presence
Coming to the automated forex
trading systems that generate the trading signals, they are more handy.
Generally the tools that are provided by forex brokers, they will be restricted
to only particular currencies, but that would not be the case with the
independent automated forex trading systems. These tools will be available in
the internet market and that too for a low and affordable price. There is no
need for you to pay every month for these tools; it's just a one time purchase.
There tools generally doesn't cost more than $100.
The main advantage of these
automated forex trading systems is that there is no need for you to depend on
any other forex signal providing organizations or on the forex brokers who
serves you. There are many chances that your forex brokers systems may also get
down due to some other reasons. They can even trade for you even while you
sleep!
To catch up with fast growing
forex market and to make good profits in forex trading, I prefer the automated
forex trading systems. These automated forex trading systems will be of more
useful to both part time and full time forex traders.
No comments:
Post a Comment