Currency Trading Signal
If you want to trade successfully in forex you need to make sure that you execute a currency trading signal, for correct market timing, to take advantage of the high odds scenarios which will ensure long term currency trading success.
This is obvious - but the way to the signals are generated is an essential part of your forex education. Here we want to take a closer look at 4 different ways of doing so, the merits and the pitfalls of each.
Forex Signal Services
Today there is a growing industry in selling and sending forex trading signals to buy or sell by vendors. They can be delivered online or even to mobile phones.
If you are going to use such a service, you need to know how the currency trading system the vendor uses actually generates the signal. It is very hard to follow a signal, when you don’t know how it’s generated.
The reason for this is of course that to have the confidence to follow a signal, you must understand the logic behind its generation, otherwise as soon as you have a few losses, discipline will go out of the window and you will lose.
If you can’t follow a system with discipline then you really have no system at all.
Forex Software
There are many forex traders who buy forex software from vendors which generate buy and sell signals and the same applies to pure signals outlined above:
You must understand the logic the system is based upon - or again you will fail to have the discipline to follow the system.
The key to making money from currency trading signals, is to find a method and logic you are happy with and execute your trades with discipline.
Trading Signals and News
Today forex news in terms of quantity, quality and speed of delivery is better than ever before and many traders look to use forex news stories such as non farm payroll and many others to generate their forex trades.
Trading news stories is destined to failure, as news is discounted instantly and you’re playing catch up - also and more importantly, the news itself is not as important, as the way the participants perceive the facts.
Humans are emotional and prices are as much influenced by the emotions of greed and fear as they are by the facts. A simple fact will prove this:
50 years ago 95% of forex traders lost money in currency exchange and the ratio still remains the same today. This is despite all the advances in news, trading platforms, software and computers.
The reason they still lose?
Emotions – these still rule the currency markets and if you trade news stories you will end up being influenced by your emotions and being influenced by the emotions of the losing crowd.
Objective Trading Signals
The best way to execute trading signals is to do so in an objective manner with rules that you understand from a vendor or rules you generate yourself.
These rules should be as objective as possible - so use indicators such as RSI stochastic crossovers, ADX divergences etc and stay away from signals that are to subjective such as Elliot wave, cycles etc.
If you are executing a trading signal in forex (or any other financial market) it should be based upon objective rules which you understand, have confidence in and can apply with discipline.
It should be part of a forex trading system that balances the risk / reward in your favour and allows you to run profits and cuts losses.
Logical Objective Criteria - Understanding – Confidence – Discipline
If you want to win with your forex trading strategy your market timing and execution of your forex trading signal is crucial for forex success. You will only achieve success if you understand the logic the signals are based upon and have the confidence and discipline to follow them.
While the above may sound obvious, we are constantly amazed by the amount of forex traders who execute signals they have no understanding of the logic behind or signals that are based on forex myths or false logic.
Your forex signal how you generate it and execute it is crucial to your forex success so spend time to learn how to do it correctly.
If you want to trade successfully in forex you need to make sure that you execute a currency trading signal, for correct market timing, to take advantage of the high odds scenarios which will ensure long term currency trading success.
This is obvious - but the way to the signals are generated is an essential part of your forex education. Here we want to take a closer look at 4 different ways of doing so, the merits and the pitfalls of each.
Forex Signal Services
Today there is a growing industry in selling and sending forex trading signals to buy or sell by vendors. They can be delivered online or even to mobile phones.
If you are going to use such a service, you need to know how the currency trading system the vendor uses actually generates the signal. It is very hard to follow a signal, when you don’t know how it’s generated.
The reason for this is of course that to have the confidence to follow a signal, you must understand the logic behind its generation, otherwise as soon as you have a few losses, discipline will go out of the window and you will lose.
If you can’t follow a system with discipline then you really have no system at all.
Forex Software
There are many forex traders who buy forex software from vendors which generate buy and sell signals and the same applies to pure signals outlined above:
You must understand the logic the system is based upon - or again you will fail to have the discipline to follow the system.
The key to making money from currency trading signals, is to find a method and logic you are happy with and execute your trades with discipline.
Trading Signals and News
Today forex news in terms of quantity, quality and speed of delivery is better than ever before and many traders look to use forex news stories such as non farm payroll and many others to generate their forex trades.
Trading news stories is destined to failure, as news is discounted instantly and you’re playing catch up - also and more importantly, the news itself is not as important, as the way the participants perceive the facts.
Humans are emotional and prices are as much influenced by the emotions of greed and fear as they are by the facts. A simple fact will prove this:
50 years ago 95% of forex traders lost money in currency exchange and the ratio still remains the same today. This is despite all the advances in news, trading platforms, software and computers.
The reason they still lose?
Emotions – these still rule the currency markets and if you trade news stories you will end up being influenced by your emotions and being influenced by the emotions of the losing crowd.
Objective Trading Signals
The best way to execute trading signals is to do so in an objective manner with rules that you understand from a vendor or rules you generate yourself.
These rules should be as objective as possible - so use indicators such as RSI stochastic crossovers, ADX divergences etc and stay away from signals that are to subjective such as Elliot wave, cycles etc.
If you are executing a trading signal in forex (or any other financial market) it should be based upon objective rules which you understand, have confidence in and can apply with discipline.
It should be part of a forex trading system that balances the risk / reward in your favour and allows you to run profits and cuts losses.
Logical Objective Criteria - Understanding – Confidence – Discipline
If you want to win with your forex trading strategy your market timing and execution of your forex trading signal is crucial for forex success. You will only achieve success if you understand the logic the signals are based upon and have the confidence and discipline to follow them.
While the above may sound obvious, we are constantly amazed by the amount of forex traders who execute signals they have no understanding of the logic behind or signals that are based on forex myths or false logic.
Your forex signal how you generate it and execute it is crucial to your forex success so spend time to learn how to do it correctly.
