Four Things to Expect From Free Forex Signal Providers

Everyone who knows how this intricate world of numbers and profits moves will agree that Forex trading is quite literally a minefield - one wrong step and all your future endeavours of making it big will be blown to bits. Trading in currency is not for the faint hearted, nor is it for people who don't fully understand complexities involved in it. Free Forex signal providers however, serve as a guiding light, helping you navigate this minefield, avoid the fallacies and make a killing in currency trade. There are many things you can expect from these service providers - various ways in which they can help you achieve your profit goals. Here is a list of four things that a free Forex signal provider is expected to provide you with:

Reliable trade signals
Until you are ready and prepared to take command of the ship, it would be better to test the turbulent waters of Forex trading under the guidance of a free Forex signal provider. Reliable, accurate, consistent and timely signals offered by these service providers can help you take the right decisions and make a profit in currency trading. The expertise and market understanding of professional trading signal providers can always be relied upon to help you make the right calls.

Variant currency pairs
Different traders select different currency pairs to increase their trade spread and cash-in on market movements. For example, the USD/JPY trade will operate very differently as compared to the EUR/USD. A Forex signal provider that deals in a wide range of currency pairs will be the best choice for you, at least till the time you understand the market better and are able to select the options that you like working with.

Consistent support
Forex trading is a highly technical world for which you will need time and patience to understand. The Forex signal provider must be your guide, available to support you, clear your doubts about the platform, its technical aspects and trade logics, 24*7. For such a company - your profitability and satisfaction hold the highest degree of priority.

High volume trades
One of the best ways to ensure consistent profits in Forex trading is making multiples trades during the day in different currencies and segments. Forex signal providers understand this fact and make sure that you get a large volume of tips and trade signals to ensure you get a fair chance of making money in currency trade.

The right Forex signal provider can make or break your stint on the currency market. Make the most of your money!

Forex System Reviews - Is Forex Morning Trade Worth The Investment?

As you can imagine, I was very skeptical when I came across the Forex Morning Trade System for the first time, not in the least because there are hundreds of Forex systems out there with big claims they can't deliver on. As I read through the website though, I was sufficiently impressed that the Forex Morning Trade System is really quite different from many of the systems out there.

I read through a number of Forex system reviews, which were all positive, another good sign. I don't put my trust in Forex system reviews alone though, so I decided to take matters into my own hands and test Forex Morning Trade out for myself. By the end of this Forex system review, you'll know if the it is a worthwhile investment.

If your experiences with automatic Forex trading systems has mostly been bad, then you can understandably be cautious when considering the Forex Morning Trade System. What caught my attention with Forex Morning Trade was that it only traded once a day, and aimed for 30-40 pips in profit with a 1:1 risk to reward ratio. Most other automatic Forex trading systems trade all day long, collect 5-10 pips in profit when they win, and blow 100-200 pips when they lose. That means that with the Forex Morning Trade System, I wouldn't lose a week or even a month of profit in just a couple of losing trades like most other systems would.

Also, while most automatic Forex trading systems don't show losses in their account statement, Forex Morning Trade does. We all know that systems will have losing trades, so it was a very good sign for me that the Forex Morning Trade System showed that it could have good monthly profits while still having quite a few losing trades in the mix. That was the feedback that I got from reading most Forex system reviews as well. The fact that it was available as an automatic Metatrader 4 expert advisor was an added bonus that makes trading it a lot more convenient for me, given that I'm in a different time zone from the UK.

I decided to buy the Forex Morning Trade system on a Sunday evening to give myself a full first week of trading, and I was really impressed with how easy it was to understand the basic principles behind the system and to install the Metatrader 4 expert advisor. All the instructions were laid out in a clear, step by step format which really helped, and I could see that the system had been updated with a few minor improvements to enhance its profitability, which showed me that there was a good ongoing support system in place. I personally have not contacted support for any reason, but based on the Forex system reviews I've read they are very responsive when called upon.

Well, as luck would have it, my first trade was a losing trade, but I managed to end the week on a positive note with a profit of +30 pips with a total of 2 winners, 1 loser and 2 no trades. I've traded the Forex Morning Trade System for just over 6 months now, and it has made me 300 pips on average each month, which is a result that has far exceeded my expectations. Overall, I'm happy with the initial performance of Forex Morning Trade and am quietly optimistic about putting my money into it moving forward.

I highly recommend Forex Morning Trade for its consistent and reliable returns, little to no time commitment on my part, and the great results that I've been seeing from it. Everything that I've experienced has been mostly in line with the Forex system reviews put out by others, so I know that I'm not the only 'lucky' one. Thank you for reading my review, and I hope that Forex Morning Trade will be just as successful for you as it has been for me.

Thad B. is a Professional Trading Systems Developer who has developed and managed dozens of profitable trading systems over the years for a private hedge fund. Forex trading systems are his passion and expertise, and he has a wealth of helpful resources available for any serious Forex systems trader.

No Loss Forex Robot - Does One Actually Exist?

Is there such a thing as a no loss Forex robot? Many Forex robot sellers would have you believe that their automatic Forex trading system can look into the future and avoid all losing trades, but the truth is that it's impossible to build a system that will never lose. In fact, you don't need a no loss Forex robot to make money in Forex trading. Believe it or not, there are many profitable Forex trading systems that suffer losses up to 50% and even 90% of the time! By the end of this article, you'll know why you don't need a no loss Forex robot to be wildly profitable in the Forex markets.

The Myth Of A No Loss Forex Robot

The myth of a no loss Forex robot has been conveniently propagated by Forex robot sellers for years to sell more systems. It's such a big selling point because let's be honest, we don't like to lose! Forex robot sellers know that, and so they try to design their automatic Forex trading systems in such a way that they appear to be the real deal... until it's too late.

If you're thinking, "But Thad, I've seen their live trading account records and it's had no losses in the last 3 months!" You're right, they haven't had a loss yet, but if you look at their profits per trade, chances are that they're only bringing in 3-5 pips in profit, and at the same time risking a 200-500 pip loss because the system uses a wide stop. These automatic Forex trading systems can go for weeks and even months without a loss, but when it comes, you'll lose all your profits and may even blow up your account!

Do You Really Need A No Loss Forex Robot?

When the whole world seems like it's going crazy, then it's often time to change your assumptions. In this mad world of automatic Forex trading systems, most people don't want to lose... and lose big as a result. But do you really need to have a no loss Forex robot to make lots of money trading Forex? Well, no, of course not! In fact, you can have a system that makes losing trades 50% of the time and still make money. Wait, let me take that one step further. You can have a system that makes losing trades 90% of the time and still make money.

How does that work? In the world of automatic Forex trading systems, the percentage of winners and losers aren't the only thing that affects the profitability of the system. For example, let's say your system has 10 winners and 10 losers. Is it a profitable system? Well, it really depends on the average size of your winners, and the average size of your losers. If your average winning trade is twice as big as your average losing trade, then you have a profitable system!

A Profitable Forex Trading System With 90% Losers?

What about the system that has 9 losers and 1 winner, the 90% loss system. Well, if you only lost $100 on each losing trade, but made $2,000 with the winning trade, then you would be $1,100 to the good and have a very profitable Forex trading system. As you can see, you don't need a no loss Forex robot to make lots of money, because the winning percentage of the system is not the only factor that determines whether you have a profitable Forex trading system or not.

Another key factor that most Forex robot sellers don't want you to know about is the relative size of the winning trades to the losing trades, known in professional trading circles as the win to loss ratio. If you have a good enough win to loss ratio, then the winning percentage doesn't matter. So, when you're searching for a profitable Forex trading system, forget about getting a no loss Forex robot. Make sure you have a great win to loss ratio to go along with your winning percentage, and you'll be laughing your way to the bank!

Thad B. is a Professional Trading Systems Developer who has developed and managed dozens of profitable trading systems over the years for a private hedge fund. Forex trading systems are his passion and expertise, and he has a wealth of helpful resources available for any serious Forex systems trader.

Why is it Important Use Forex Indicators?

Forex indicators are a series of data points applied to predict movement of currencies. It is a technical indicator containing following components.

♦ Stochastic Oscillator
♦ Relative Strength Index (RSI)
♦ Elliott wave theory
♦ Moving Average Convergence Divergence (MACD)
♦ Number Theory
♦ Gaps
♦ Chart formations
♦ Trends

Stochastic Oscillator:

It indicates the oversold and overbought conditions on scale of 0-100%. In uptrend, the closing prices concentrate on period range's higher part. While in downtrend, the closing prices are near extreme low level on period's range.

Relative Strength Index (RSI):

It is most popular in Forex indicators. The RSI is displayed in range between 0-100 and calculated by measuring the ratio of upward moves to downward moves. The instrument is considered overbought if RSI is 70 or greater, while a RSI of 30 or less, it indicates instrument oversold.

Elliott wave theory:

The theory is a way to analyze market, which depends on Fibonacci number sequence and repetitive wave patterns.

Moving Average Convergence Divergence (MACD):

This indicator requires plotting two momentum lines. The MACD line refers to difference between two exponential changing averages and trigger or signal line, which refers to exponential moving average difference.

Number Theory:

Fibonacci numbers is a sequence (1, 1, 2, 3, 5, 8, 13, 21, 34.....) achieved by adding first two numbers to achieve the third number in the sequence. The ratio between the smaller number and the next larger number is 62%.

Gann numbers:

The Gann numbers refer to methods developed by W.D. Gann to trade instruments, which are based on relation between time and price movement. These Forex indicators are hard to explain, as it uses angles in charts to ascertain resistance, support areas, and speculate the timing of future trend.

Gaps:

No trading is indicated on bar chart by spaces, which are called Gaps. These Forex indicators indicate the market conditions.

There are different types of indicative gaps in Forex indicators

♦ An up gap is displayed on the graph when lowest price of trading day is comparatively higher than highest high price of the previous day. It is a sign of strong market.
♦ A down gap is displayed on the graph when highest price of the trading day is comparatively lower than lowest price of previous day. It is sign of weak market.

Chart formations: There are different chart formations such as rectangle, head, shoulders, and triangle chart, which display different information related to Forex indicators.

Trends: They are Forex indicators that denote direction of prices. Rising peaks and troughs signify uptrend and falling peaks and troughs signify downtrend.

Risk Management

The Forex market is highly lucrative battle ground where traders fight for money and when money is made, money is lost too. However what makes trading currencies different than gambling at a casino is the ability for hardworking individuals who spend their time tracking the news, analyzing and managing their risks in trades to take full control of their investments and have stable large returns. In this article I will give you a few tips to help you manage your risk when trading on the Forex market.

- Stop loss and Take profit orders:

Most Forex brokers offer a stop loss and take profit orders which can be used to manage the Risk reward ratio. Set your stop loss according to how much are you willing to risk on every trade I personally never risk more than 0.85% of my funds in one trade hence my stop loss orders are always set accordingly. Don't set stop loss orders too low otherwise your position might close with the usual small ups and downs in the currency pair price. Always set your take profit orders with reasonable profits or you might end up passing the awaited up/down movement in the position and start making losses. Monitor volatility in the market at all times and make sure to adjust both orders accordingly.

- Trading similar instruments:

Avoid holding positions on currencies that tend to move together in the same direction for example the pairs EUR/USD and GBP/USD tend to move together in the same direction hence I avoid having positions opened on both unless I have a urging fundamental or technical indication to act otherwise.

- Don't chase your losses:

All traders including yours truly have had losses at some point or another but smart traders only chase profit and once have had a bad experience with a certain instrument, it remains neutral to him and he moves on chasing profit unlike many traders who take the casino approach and pump more money into a losing trade trying to compensate for their losses. When it is time to move on it is time to move on. Never chase your losses.

- Take control of your leverage:

Not all brokers allow you to adjust your leverage however adjusting leverage is a great way of managing your risk to learn more about leverage you can read my article Leverage - A Gift or a Curse.

- Diversify your portfolio:

Always look for new instruments to trade with the more you diversify your trades the less risks you may have face. Use a broker that offers more instruments like futures, stocks, ETFs, options, bonds, CFDs or mutual funds.

- How to do it right?

Set a risk reward ratio, I personally use 1:3 ratio so for example on a trade that I set my take profit to $3000 I set my stop loss to $1000. I personally recommend this ratio as it is a balanced ratio.

Unlike many others Traders who chose to control their risk and rewards are most likely to stand a chance against bad days in the markets by taking control of their trades and make profits on a risky market like Forex.

Broco is a regulated broker offering access to the forex, stocks, futures, ETF and CFD markets along with a revolutionary state of the art tools to control risk reward ratio and an adjustable leverage up to 1:500. Broco offers a personal broker for every client as well as free news from Dow Jones wire, analytics, and trading recommendations.

The Best Instrument to Day Trade With

To be specific, the actual phenomenon of Forex trading is not the fact that there are more and more people turning to it as an investment opportunity, nor is it the fact that it has been growing steadily for the past few years. It isn't even the fact that more and more investors cropping up from all sectors of society.

The phenomenon of the Forex market is the day trade, which was once the exclusive landscape of many large financial firms, banks and investors/speculators, has now stretched to hundreds of thousands of casual traders which do most of their work from the comfort of their own home. This is because of the advent of online trading as well as margin trading, meaning more and more people have access to the investment tools necessary for trading.

Day trading's definition is the buying and selling of financial instruments or commodities in a single day, so that the investor liquidates all his investments and assets before the positions are closed on the day itself. These people are called day traders and they range from large banks, financial institutions to - only recently - a large portion of casual 'at home' internet traders. The basic machinations of the day trade are that an investor will always look for a position that has momentum or tension to move - in price.

This makes for a lot of research and a good eye for financial positions. Day traders make their money through cumulative results, they don't settle for the long view but are content to make a little a day and hopefully at the end of the month, the sums will total to something viable. Day trading is more popular to casual investors because of the fact the risks are lower. Day trading always incurs smaller amounts than long term positions (traditionally) and Forex is one of the best instruments to day trade with because of the fact that the Forex market is liquid.

The ability to pull out whenever you want as well as to make your investment decisions into actions is one of the most important things about day trading. Day trading is reactionary and impulsive, and it requires a market that shares the same properties. Within the Forex market, movements called percentage in points (pips) happen all the time in all areas of trading (spot, forward, future, swap, options, ETF trading) - and they happen within the course of different regional markets in different days.

Forex is the best instrument to day trade with because of its reflexive nature and the amount of resources that has been pumped into it - the interface, training programmes, software, that allows for split decisions to be made and communication to the broker at an almost instant integer. If you have decided to trade in the Forex market, I would advise that you start with the day trade. It is a safer option for the casual investor - then as you gain confidence, you might want to diversify your portfolio. Be the smart investor, and never allow yourself to be driven by an impatience to make a big killing.

Basic Terms and Slang Expressions - Forex For Beginners

This page contains common terms and slang expressions that should know any trader!

Ask
Rate at which bank (dealer) sells a financial instrument. For example, if the quote is EUR / USD = 1.2234/38 at the rate of 1.2238 (ask) the Bank shall sell euros for U.S. dollars.

Bid
Rate at which bank (dealer) buys a financial instrument. For example, if the quote is EUR / USD = 1.2234/38 at the rate of 1.2234 (bid) shall purchase the bank euros for U.S. dollars.

CFD
Transactions in shares of any product without their actual delivery.

Change
The difference between the current price and the closing price the previous trading day.

Change%
% Change is calculated as the ratio of Change and the current price of an instrument (% Change = (Change / Price) * 100)

MetaStock
One of the most popular and powerful programs of technical analysis.

OCO (Order Cancel Order)
This order is a combination of two separate orders for the purchase or sale. Once executed one part of the order (the first that can be executed), the alternative order is automatically canceled.

Omega
One of the most popular and powerful programs of technical analysis.

Active Balance
Cash account

Broker
Professional market participants conduct transactions with a specific set of instruments on behalf of and at the expense of the client or on its behalf and the client's account on the basis of onerous contracts with the client.

Usable Margin
Funds that can be used to open new positions or removed from the account.

Used Margin
Funds involved in the maintenance of all open positions at the time of the data.

Close position
Make a transaction leading to the closure of the open position.

Indicative quotes (Composit)
Quotes coming from several banks. Show the general trend in the Forex market and allow for those. Analysis.

Indicators graphic
Means of technical analysis to help predict the behavior of the market.

Execution warrant
Committing a transaction broker in accordance with the order (warrant) and cancellation of orders.

Leverage
Credit provided by the bank customer to conduct transactions. Shows how many times the required margin is less than the contract price.

Liquidation Balance (Equity)
Calculated as the difference between the active and total balance of Profit / Loss on all open positions.

Market Liquidity
Liquid market - the market in which relatively frequently committed transaction of buying and selling. A liquid market is characterized by opportunity for the seller (buyer) to quickly sell (buy) goods.

Limit
Order to buy or sell currency at a specified price or better. This warrant is usually exposed to capture profits. Can also be used for open positions.

Lock
The opening of two positions for one instrument, one specification and the same size in different directions. For example, the opening position 1 eur buy at the open 1 eur sell - called "zalokirovat position."

Loss
Loss of the transaction (or in the open position)

Lot
Target volume transaction torguemovogo financial instrument. When trading on Forex and CFD markets differentiate minimum and standard lots.

Better price
When selling price is better, if it is higher than is currently available in the market. When purchasing price is better, if it is lower than is currently available in the market.

Market maker
Large banks and financial companies, determining the current level of the exchange rate at the expense of a significant portion of its operations in the total market. Market makers set the current level of the exchange rate through a transaction with each other and with the smaller banks are users of the market.

Market order
Order for immediate purchase / sale of currency at the prevailing price at the moment on the market.

Margin call
The moment when there is a lack of maintenance margin account, you must either update your account or close some open positions.

Margin
Deposit (deposit insurance), which provides cover possible losses that may arise in margin trading.

Mini Lot (Mini)
Trade mini lots.

Illiquid market
Illiquid market - the market, which is relatively rare to contract for the purchase and sale. Illiquid market is characterized by lack of opportunities for the seller (buyer) to quickly sell (buy) goods.

Necessary Margin
The amount required to maintain an open position

Overnight
The fee is charged when passing an open position on the next day.

Order
Order broker to complete the deal under certain conditions.

Refused order
When installing the order agent may refuse to accept it in some cases: If the customer does not have enough funds in the account for the transaction If the warrant specifies incorrect price: worse for the limit, or better to stop.

Open Position
If the transaction has taken place (buying / selling) and has not yet been committed to her opposite transaction (sale / purchase) on the client's balance existing open positions.

Open positions
To make a deal leading to the emergence of Open Position

Cancel Order
Order broker to cancel an active warrant

Pips
The last digit of writing the exchange rate, for example, EURUSD 0.0005 - a five pips.

Scalping
Enter the market at the minimum possible time, sufficient to take profits, as a rule, the entire capital.

Profit
Profit from the transaction (or in the open position)

Item
For Forex is the same as teak.

Session
Intraday time trading tool.

Spread
The difference between the quotations of Bid and Ask.

Standard
Trade standard lots.

Stop
Order to buy or sell currencies in the market reaches a certain price, worse than the current market price. This warrant is usually billed to limit losses if the market moved in the opposite direction expected. Can also be used for open positions

Stop Loss
Stop order, fixing a possible loss for a specific open position.

Take Profit
Limit orders, fixing possible profit for a specific open position.

Technical Analysis
The method of forecasting future price trends through the study of graphs of the dynamics of the market for prior periods.

Teak
The minimum step change in the price

Trading quotes
Quotations particular bank (broker / a dealer firms). These quotes are committed transaction.

Forex (Foreign Exchange Currency Market)
International market exchange

Fundamental Analysis
The method of forecasting future price trends, based on the analysis of economic data.

Futures Contract
The agreement to buy or sell a specified quantity of a certain commodity at a specified time at a specified price.

Worse price
When selling price is considered to be worse if it is lower than is currently available in the market.

When you purchase price is considered to be worse if it is higher than is currently available in the market.