Posts tagged Forex for beginners

• Choosing a Forex Broker
• The Importance of Strategy
• Applying the Signals

On this Post I’ll Outline How you can use OmniForex Trading Signals to come up with a Forex Trading Strategy that will consistently Make you Profits: If you already have a Forex Trading account with a broker go to step 3.

Choosing a Forex Broker

In order to trade Forex it is necessary to open an account with one of the many available online brokers. I use a and recommend eToro, they are my first brokers and have never seen the reason to change. They are very supportive especially and offer Forex Trading Courses from the beginning moving forward:

Step: 1 Open a free Account with eToro and get a Free Training Course

Step 2. Load a Minimum of $ 50 to start trading.

Step 3. Create a Forex Trading Strategy – Use OMNIFOREX

Click Here to Join OmniForex Signals Membership Site

The Importance of Strategy

In order to make money trading Forex it is necessary to buy/sell the right currency pairs at the right time. What a trader determines to be “the right time” will be shaped by the trader’s strategy. It is wise to adopt a clearly defined trading strategy to systematize the trading process. Otherwise, you will never be able to tell when “the right time” is. Because of the continuous and dynamic nature of the Forex market, whether a currency is expensive of inexpensive will be determined by your positions and your trading strategy.

Trading strategies can be very simple. For example, a trader might decide to purchase a currency every time the price is lower than the 5 previous prices, and sell every time the price is higher than the 5 prices. Traders can define their own strategies from an almost limited array of possibilities. Part of the essence of strategy, whichever a trader adopts, is to follow through on the selected strategy. Traders often change strategies early on because they incur a loss. The nature of the Forex trade is such that sometime you win and sometimes you lose. If you win more often than you lose, your gains will exceed your losses, and you will be a successful Forex trader. Clearly defined strategies should include “stop loss” and “profit” parameters. These will assist if/when you are required to make an exit from a trade to avoid incurring major losses.

It is recommended that you pursue a single strategy – intraday, daily or weekly – depending on the frequency that you would like to trade. It is recommended that, should you choose to pursue more than one strategy, each strategy that you pursue is traded using a separate. Always use multiple brokerage accounts if you are trading multiple strategies.

The reason why it is best to not use multiple strategies is that sometime you will unintentionally close a position when executing trades for different strategies. For example, the Weekly strategy might suggest that you should purchase 5 units of USD/CAN at 8:00. The Intraday separately suggest that you should sell 5 units of USD/CAN at 10:00. In this situation, you would be unintentionally closing the position opened while following the Weekly strategy.

Applying the Signals

Suppose you choose to go with the Weekly strategy and in your Account Settings you request to receive signals at 3:00 PM on Mondays. It is important that you log on to Omni Forex and access the Signals section at about 2:59 PM. When the Signals appear, they will look something like the following, assuming you choose to trade the EUR/USD pair:

EUR/USD – BUY, Stop Loss: 50 pips, Get Profit 100 pips

Assuming at 3:00 PM the value of the EUR/USD pair is 1,290 you should log on to you Forex account (or better still have it open before hand) and place a BUY order at the price 1,290. At the same time, you should set the Stop Loss at 1,240 and Get Profit at 1,390.

These values are calculated using simple addition and subtraction. When placing a BUY order, always subtract the Stop Loss signal amount from the current price (1,290 – 50 = 1,240), and add the Get Profit signal amount to the current price (1,290 + 100 = 1,390).

The signal could alternatively recommend that you sell a particular pair. Consider the following example signal:

EUR/USD – SELL, Stop Loss: 50 pips, Get Profit 100 pips

Assuming at 3:00 PM the value of the EUR/USD pair is 1,290 you should log on to you Forex account and place a SELL order at the price 1,290. At the same time, you should set the Stop Loss at 1,340 and Get Profit at 1,190.

The addition and subtraction is the reverse of when placing a BUY order. When placing a SELL order, always add the Stop Loss signal amount from the current price (1,290 + 50 = 1,340), and subtract the Get Profit signal amount to the current price (1,290 – 100 = 1,190).

Trades will be automatically closed by your broker when either the Stop Loss of Get Profit levels specified by you are reached. Alternatively, you can close the position manually if the next signal is generated and suggest that you trade in the opposite direction. Likewise, the Stop Loss and Get Profit levels can be updated to reflect the price at the time the signals are generated.

As mentioned earlier, it is recommended that you test the signals using a practice account with one of the brokers. Once you are comfortable with the process and feel ready to trade, you can use Omni Forex Signals by simply 1) opening your forex broker account, 2) logging on immediately before the signals are generated, and 3) applying the signals recommendations by placing the relevant BUY or SELL orders with your broker.

The Intraday Strategy provides signals up to 6 times a day generated every 4 hours. The Daily Strategy provides signals one time per days. Finally, the Weekly strategy provides signals once per week. You can select the timing of the signals in Account Settings.

N.B.: Forex markets are closed from 22:00 GMT on Friday (at the end of the US trading session) and open again from 22:00 GMT on Sunday (at the start of the Australian trading session). Signals are generated at all times to avoid confusion; however, you will not be able to trade when the markets are closed.

Click Here to Join OmniForex Signals Membership Site

Cheers, Mike

http://www.superprofitsmedia.com/forextrade/omniforex.php

Forex Trading Strategy with OmniForex Signals