(Almost) Everything You Need to Know About Forex Signals

If you are serious about making money in the foreign exchange (Forex) marketplaces you absolutely MUST learn to read, recognize, and quickly analyze different Forex signals.

One of the most exciting, fast-moving, and always interesting investment vehicles under the sun right now, Forex definitely takes a special set of skills to master – but everyone can develop those skills over time (most faster than they expect) when you know the ins and outs of Forex signals.

Below we dig a little bit deeper into what you absolutely need to know about Forex signals before getting started, how to use the signals to start trading more effectively, and how to avoid signal trouble that can sink your investments faster than you thought possible.

Let’s dive right in!

What Are Forex Signals?

To put it simply, Forex signals are basically trends that can be charted that frequently show up time and time again when a Forex investment opportunity as a behavioral change.

Some Forex signals let you know that a major spike in value is just around the corner, others let you know that the market for a specific Forex investment is going to fall apart, and others help you spot great investment opportunities before the rest of the market sees them – basically giving you “x-ray vision” compared to traders that aren’t quite as plugged in.

At the same time, Forex signals are not a guaranteed blueprint for success in the markets.

These signals can only tell you about the historical trends and how things have shaken out in the past, they cannot (perfectly) predict the future. All the same, you have to be at least a little bit crazy not to use Forex signals when analyzing the markets before you make a move.

Chart Your Own or Pay a Service?

The beautiful thing about Forex signals is that they are so universal across different currency options on the market, and as long as you have a market platform that lets you read the data as it comes in – data that updates in real time – you can spot the signals as they form.

At the same time, you can also skip all the heavy lifting required to chart signals as they manifest during the day-to-day operation of the Forex market and instead pay a signal service to do the legwork for you.

Some people love diving deeper into the data, checking out the market themselves and spotting trends instantly as soon as they start to form. Other folks like to take a more hands-off approach to mastering the Forex market, getting signals sent to them from trusted providers with a track record of helping Forex investors it big.

At the end of the day, it’s really up to you and the kind of investing you want to do.

Important Forex Signals to Watch Out For

There are all different kinds of signals that you contract when training Forex, but the most important ones you’ll want to really zero in on include:

  • Action signals, letting you know if it’s time to buy or sell a Forex statement
  • Stop Loss signals, representing exit points so that you know when to get out of different positions
  • Take Profit signals, the opposite of a Stop Lost signal
  • Current Market Price signals, giving you a better baseline feel for what your Forex positions are worth at any one particular point in time – especially up against a currency pair

Keep these things in mind when you start to trade Forex and you’ll be much more profitable right out of the gate!

Mastering the Basics of Forex Trading

There aren’t too many modern investment vehicles as exciting as the world of Forex.

Constantly changing, ever evolving, and open 24/7 every single day of the year, Forex trading is a roller coaster ride that can be incredibly profitable – so long as you have the basics and fundamentals down before you jump right in.

Throughout the rest of this quick Forex trading guide we shine a light on all the things you need to know before you get started.

Master these core details and you’ll find Forex profitability a lot less elusive than most beginners, cranking out smart trades and making intelligent moves in the Forex market that help you build real wealth.

Shall we get started?

Let’s get to it!

Better Navigating the Forex Market

The first thing you need to do is fully familiarize yourself with the basics of the Forex market itself.

You’ll want to better understand how different currencies around the world are treated against one another, how you can take advantage of shortselling and Forex spreads to boost your profitability, and how to spot the right kind of signals that tell you different types of trades are most likely to succeed in real time.

Understanding the lay of the land, so to speak, is the most important piece of the puzzle behind Forex trading success.

If you don’t understand the composition of the market, how these trades are handled, or how basic moves are made your never going to be able to master the more involved strategies and tactics in Forex that can really start to add mounds of money to your bank account.

Getting Comfortable with Forex Fundamental Analysis

The next thing you’re going to want to do when learning the fundamentals of Forex trading is get comfortable with fundamental analysis.

This means learning how to read Forex economic calendars so you can more accurately track news and upcoming events, how to understand the impact GDP has on Forex currencies all over the world, the CPI (Consumer Price Index) and its impact, using PPI and ISM data to help make smarter moves, and so much more.

All of this goes well beyond learning a handful of signals, being able to read candle charts, and fooling around in the market with paper money accounts.

Not only do you to be able to find this information (most of it available from high quality trading platforms), but you also have to know how to make the most of that information as well. Fundamental analysis – and, later, technical analysis – are big pieces of the success puzzle as well.

Trading with Discipline

The last thing you need to master when you’re getting serious about Forex trading mastering yourself, your emotions, and your decision-making process.

Year after year the most successful Forex traders are always the ones that are able to trade with extreme discipline.

This means understanding your own psychology, recognizing when the fear of missing out is pushing you to make moves you wouldn’t have made otherwise, any how to take control of your decisions in a way that forces you to use logic and reason rather than just cave on emotional swings or “gut feelings”.

Work on all of these elements and you’ll be able to get down the basics of Forex trading a lot faster than most of your competition.

Trading Stocks Vs. Trading Currency

Trading stocks and currency are very different. Some people prefer to trade on the stock market, and others prefer to trade on the Forex Market. Which one is better? Well, consider these following points, and then make the decision for yourself:

Leverage


The amount of leverage allowed on the two markets is quite different. When trading on the stock market, you can trade with leverage, but it will be very small, such as 2:1, and you have to qualify for it. When trading on the Forex Market, all you need to trade with leverage is to be able to open an account. If you can open a bank account, you can open a Forex account, so it is much easier. Also, you can leverage much higher in the Forex Market. In the US, you can’t leverage higher than 50:1, but in other places throughout the world, you can leverage 100:1 or more.

What You Need To Consider

Doing stock market analysis is important, and requires a lot of research about the companies you wish to invest in, but once you make a decision, you only need to worry about whether the company is going to continue along the path they are on, and hope they become more valuable. Forex analysis is also important, and can be more complicated. When trading currency, you have to consider the GDP and the economy of the country whose currency you are considering. You have to see what the political climate is, and if there are other circumstances on the horizon that might affect the currency. The Forex market can change much faster than the stock market.


Amount of Freedom

There are Forex brokers and stock brokers. You can consult a Stock EA and a Forex EA. You can use different stock programs and Forex programs, such as Stock Trade Copier and Forex Trade Copier. You can look at stock market trends and Forex signals. Even with all of this knowledge, you are still not guaranteed a win or a loss. Both of these trading options leave the trades up to the trader, but this is where the freedom aspects change. The stock market is not open as often as the Forex Markets. There is a lot more regulation in the stock market than in the Forex Market. The Forex Market is more volatile, but the stock market has more rules. Ultimately, the choice is yours.