how to find entry and exit signals in forex ?

Sunday, November 17, 2013 , Posted by Ryanita at 12:00 AM

forex 4 hour trading strategy
 on Forex Eight Hour Chart Challenge
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semesic


i have been trade the demo account for a two month and i have learn a lot the only thing that i am haveing problem with i cant get it consitant. i dont know how to look for entry and exit singles can some one please help me out


Answer
Hello. Good question and not easily answered since there are literally hundreds, make that thousands of ways to theoretically determine and entry and exit point. Try to be careful and avoid all of those "plugin" strategies that are sold and guarantee you big returns on auto-trade. Typically ends up just costing you money.

What you do need it sounds like is a very steady, consistent strategy where you have specific rules of where to get in, where to get out, and how to put the odds in your favor on every trade. You have to realize you will lose, and lose on a regular basis. The key to good trading is to have a higher average win than loss, and have a high a win percentage as possible - clearly being above 50%. I like to aim for "2/3rds to 1/3rd" meaning win 2 out of 3 times, and average gain higher than average loss. Also, with forex, avoid trading the dead times -- usually there's only about 4-6 hours total in the 24 hours worth trading forex. The rest of the time your odds go way down.

Some more forex tips
http://www.netpicks.com/7secrets

Broker for trading on FOREX?




Igor


I am planning to open an account to trade on FOREX. Since I am new to trading on FOREX I am interested in opening an account where I can trade micro lots of 1,000 with margin no more then 1%. What would you recomend?
Thanks.



Answer
The RIGHT Forex broker for you depends on a couple of factors. It seems a lot of new Forex traders end up with Gain Capital(forex dot com), FXCM, or GFT. HOWEVER, the reason is is that these companies spend a ton of money advertising. Don't get fooled by the advertising. Now, I'm not saying that one of those may not be right for you... but spend some time researching the different types of Forex brokers and the advantages of each. Read through a couple Forex Broker review sites, taking everything you read with a grain of salt because they all have a horse in the race (ie bias). Then consider the following:

1) Choose a broker that has a combination of strong liquidity sources and financial stability.

2) Understanding your trading strategy and how the different Brokers will affect it's performance.

3) 3) What currency pair(s) do you expect to trade? Depending on a Broker's liquidity source(s) the broker may have better or worse spreads on different pairs.

4) ECN, STP, or Market Maker? Is the broker trading against you or simply passing your orders onto the real market? Research the types of brokers and choose the one that fits your trading style best.

5) Fixed spread or Variable spread? This choice can be extremely important depending on the strategy you trade and the position sizes you take. If you mainly stick to high-volume market times for your trading than you will probably want a variable spread which often translates into lower overall spread costs. If you get signals around the clock, many times during off peak hours a fixed spread Broker may be better because fixed spreads tend to be cheaper than variable spreads during off market times.

6) What trading platform do you want to use? This is EXTREMELY important. Open demo accounts at a variety of brokers and find a platform you are comfortable trading.

7) Do you want to trade with an on-shore or off-shore Broker? The location of your Broker may have important tax and legal consequences.

Don't get caught up in the hype of Forex broker advertising. Do your research. The Broker you choose becomes your partner in the Forex market. This partnership is crucial. The Broker will always benefit from this relationship. Whether or not you benefit depends on Broker you choose.




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