Forex Trading Signals

You read time and time again that 95% of private Forex traders lose money through their currency trading. This aspect is rather gleefully exploited by the brokers, and in particular by those who are selling the hundreds of different trading strategies, many of whom receive a kickback from the brokers. Usually the poor private trader (literally by now !) achieves the odd winning trade from time to time to be kept on the Forex hook.

Eventually the trader accepts that a lot on money has been lost to losing trades, notwithstanding the additional losses of staggering from the purchase of one trading strategy to another, continually searching for the Holy Grail of currency trading.

This optimism of landing on winning trades is not shared by Murphy's Law - which states that as soon as you open up a trade the market price will disappear in the opposite direction required for your trade.

Eventually traders will be severely out of pocket, very frustrated, and deciding that currency trading is not for them, and best left to the professionals after all.

This state of mind is a great shame - because it is not necessary.

There is a type of trading called Hedge Trading. Not the usual type of Hedge trade where the wheels just go around and the trade goes nowhere! This is a very special type of Hedge trade I have come across. Using a good trading platform, with as little as US$250 capital, it is a "set & forget" stress free trade - no requirement to constantly monitor the computer screen. You could not care less which way the market price moves, up or down, provided it does move (which knocks Murphy`s Law right on the head). Indeed, strange as it may seem, you will actually enjoy seeing initially a losing trade !

It is not a get-rich-quick trade. A usual trade will take on average 2 - 5 days to go into profit, and produces regular profits, depending upon the state of the market. You will need patience, sometimes a lot of patience, before the trade goes into profit. If you try to be too greedy as to profits, you could come unstuck should there be a dramatic turndown in the currencies you are trading. But by trading conservatively I cannot see how any trader can hit a losing trade. Certainly I could give no guarantee in this respect - but sufficient to say I have never had a losing trade.

For more details visit http://www.myeasyforexsignals.com

6 Forex Trading Terms - Forget Them and You Are Out of The Game!

These are the forex trading terms which every trader needs to know before he or she even starts the first trade. Quite simply, if you do not know them, then the forex trading game may not be suitable for you. Why? Because they are the essentials!

1. Currency Pairs

Every transaction involves a pair of currencies since a trade is basically the selling of one currency and buying of the other.

2. Major and Minor Currencies

There are 7 major currencies traded online. They are USD, EUR, JPY, GBP, CHF, CAD and AUD. The rest are all minor currencies. Amongst these, some of the more frequently traded ones are the South African Rand (ZAR), the Singapore Dollar (SGD) and New Zealand Dollar (NZD).

3. Base Currency

The base currency is the first currency in the pair as a measure of its value against the second currency. For example, a GBP/USD = 1.7100 means that 1 GBP is worth 1.7100 USD.

4. Quote Currency

The quote currency is the second currency in the pair. Any profit or loss is a measure of this currency.

5. Cross Currency

A cross currency is a pair which neither of them is the USD. These pairs often experience intricate price movements because each trade actually involves the buying and selling of 2 different currency pairs. For instance, when buying a EUR/GBP, you are actually buying a EUR/USD pair and at the same time selling a GBP/USD pair. The transaction costs are often higher for such trades.

6. Pips

What is a pip? 1 pip is the smallest unit of price for any foreign currency. Most currency pairs consist of 5 digits and the pip represents the smallest change in the fourth decimal place, ie 0.0001.

These are the core forex trading terms that all professional forex traders should get familiar with. Since each trade cannot depart from them, it does make sense to find out more.

Learn everything about forex trading from Davion's wildly popular Forex Trading Made Easy blog - from mastering the basics of foreign exchange trading to discovery of new trading tips, strategies, tools and more.