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Trading Alerts Or Signals.

Started by admin, Oct 19, 2019, 08:12 pm

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Trading Alerts Or Signals.
Forex alerts or signals are delivered in an assortment of ways. User generated alerts can be created to 'pop up' via simple broker trading platform tools, or more complex 3rd party signal providers can send traders alerts via SMS, email or direct messages. Whatever the mechanism the aim is the same, to trigger trades as soon as certain criteria are met.
These criterion usually rely on chart patterns and/or candlestick formations. Our charting and patterns pages will cover these themes in more detail and are a great starting point. Paying for signal services, without understanding the technical analysis driving them, is high risk. It is impossible to judge a service, if you do not understand it.
Traders who understand indicators such as Bollinger bands or MACD will be more than capable of setting up their own alerts. But for the time poor, a paid service might prove fruitful. You would of course, need enough time to actually place the trades, and you need to be confident in the supplier. It is unlikely that someone with a profitable signal strategy is willing to share it cheaply (or at all). Beware of any promises that seem too good to be true.
50 Pips A Day.
If you download a pdf with Forex trading strategies, this will probably be one of the first you see. Beginners can also benefit from this simple yet robust technique since it's by no means an advanced trading strategy. However, before venturing into any exotic pairs, it's worth putting it through its paces with the major pairs.
So, when the 07:00 (GMT) candlestick closes, you need to place two contrasting pending orders. Firstly, place a buy stop order 2 pips above the high. Then place a sell stop order 2 pips below the low of the candlestick. As soon as price activates one of the orders, cancel the one that hasn't been activated.
In addition, make sure you place a stop-loss order anywhere between 5-10 pips above the 07:00 high/low. This will help you keep a handle on your trading risk. Now set your profit target at 50 pips. At this point, you can kick back and relax whilst the market gets to work.
If the trade reaches or exceeds the profit target by the end of the day then all has gone to plan and you can repeat the next day. However, if the trade has a floating loss, wait until the end of the day before exiting the trade.
But for more detailed examples, see our strategies page on intraday trading techniques.

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Get access to an IQ Options demo account here.
Forex Trading Software.
There is a massive choice of software for Forex traders. Costs and benefits will be the main considerations, and we do look at a few software platforms in detail on this website:
These platforms cater for Mac or Windows users, and there is even specific applications for Linux.
Social trading (or 'Copy trading') platforms are another variety of software associated with Forex trading. The leading pioneers of that kind of service are:
We expand on the choices for software trading platforms on our Software page.

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Education.
If you want to increase that Forex day trading salary, you will also need to utilise a range of educational resources:
Books - You can get profitable strategies books, books on scalping, regulations, price action, technical indicators, and more. In addition, there are plenty of niche books. So, you can find the best books on strategies for beginners or two-step trend analysis, for example. Chat rooms & forums - Day trading Forex live forums are a fantastic way to learn from experienced traders. Some will even share their best free trading systems. Just beware the quality of advice. Blogs - If you want to hear success stories from Forex millionaires, then day trading Forex blogs might be the place to go. Again, tread carefully with any advice offered. Forex websites - There are a number of specific Forex websites. Some offer free signals, techniques for spotting trend lines and setting up your platform. PDFs - Online you will find a number of Forex trading system PDFs. Unlike live chat rooms, charts will often be provided to support written evidence.

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Money Management.
The most profitable Forex strategy will require an effective money management system. One technique that many suggest is never trading more than 1-2% of your account on a single trade. So, if you have $10,000 in your account, you wouldn't risk more than $100 to $200 on an individual trade. As a result, a temporary string of bad results won't blow all your capital.
Then once you have developed a consistent strategy, you can increase your risk parameters. The Kelly Criterion is a specific staking plan worth researching.
Automation.
Automated Forex trades could enhance your returns if you have developed a consistently effective strategy. This is because instead of manually entering a trade, an algorithm or bot will automatically enter and exit positions once pre-determined criteria have been met. In addition, there is often no minimum account balance required to set up an automated system.
However, those looking at how to start trading from home should probably wait until they have honed an effective strategy first.
For further guidance, see our automated trading page.
Taxes.
When you read a blog about Forex traders, such as 'a day in the life', they often leave out the impact of tax. In fact, it is vital you check the rules and regulations where you are trading. Failure to do so could lead to legal issues.
See our taxes page for details.

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Webinars & Training Videos.
They are the perfect place to go for help from experienced traders. This is because Forex webinars can walk you through setups, price action analysis, plus the best signals and charts for your strategy. In fact, in many ways, webinars are the best place to go for a direct guide on currency day trading basics.
3 Mistakes To Avoid.
1. Averaging Down.
While you may not initially intend on doing so, many traders end up falling into this trap at some point. The biggest problem is that you are holding a losing position, sacrificing both money and time. Whilst it may come off a few times, eventually, it will lead to a margin call, as a trend can sustain itself longer than you can stay liquid.
This is particularly a problem for the day trader because the limited time frame means you must capitalise on opportunities when they come up and exit bad trades swiftly.
2. Trading Too Soon After the News.
Big news comes in and then the market starts to spike or plummets rapidly. At this point it may be tempting to jump on the easy-money train, however, doing so without a disciplined trading plan behind you can be just as damaging as gambling before the news comes out. This is because illiquidity and sharp price movements mean a trade can quickly translate into significant losses as large swings take place or 'whipsaw'.
The solution - wait for the volatility to subside and you can verify the trend.
3. Days of Interest.
It's great having an effective once a day trading method and system. However, even a consistent strategy can go wrong when confronted with the unusual volume and volatility seen on specific days. For example, public holidays such as Christmas and New Year, or days with significant breaking news events, can open you up to unpredictable price fluctuations.
Countries.
The country or region you trade Forex in may present certain issues. For example, Forex traders in the USA and Canada will need to read up on pattern trading rules (Canadian traders have it slightly easier).
Trading in South Africa might be safest with an FSA regulated (or registered) brand. The regions classed as 'unregulated' by European brokers see way less 'default' protection. So a local regulator can give additional confidence. This is similar in Singapore, the Philippines or Hong Kong. The choice of 'best Forex broker' will therefore differ region by region.
Trading Forex in less well regulated nations, such as Nigeria and Pakistan, means leaning towards the more established European or Australian regulated brands.
Forex Trading; Is It Profitable?
Many people question what a trader's salary is. However, the truth is it varies hugely. The majority of people will struggle to turn a profit and eventually give up. On the other hand, a small minority prove not only that it is possible to turn a profit, but that you can also make huge returns. So it is possible to make money trading Forex, but there are no guarantees. 75-80% of retail traders lose money.
Bottom Line.
Currency is a larger and more liquid market than both the U.S stock and bond markets combined. In fact, a surplus of opportunities and financial leverage make it attractive for anyone looking to make a living day trading Forex.
Unfortunately, there is no universal best strategy for trading Forex. However, trade at the right time and keep volatility and liquidity at the forefront of your decision-making process. Follow these general rules for FX day trading and you'll be on the right path.