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Superior FX Signals.ComForex TradingWhat is Forex? Forex stands for foreign exchange. Forex is a market that deals withthe exchanging currencies in real time all over the world. If you are looking for agreat opportunity to trade foreign currencies, Forex can be a great market to trade in.Forex is the largest financial market in the world. The Forex market accounts foralmost 2 trillion dollars in average daily turnover each day. Forex can be a great wayto trade, because with the foreign exchange market, you simultaneously buy and sellcurrencies, exchanging one currency for another. For instance, trading the US dollarfor the Japanese Yen.Today, many investors can easily trade Forex from the privacy of their own home.There are many platforms and software that can allow almost any investor to buy,sell and check charts and information instantly. There is no center market for Forex,Forex runs on a network and continues 24 hours a day, starting from Sydney,Australia.For most investors that are interested in trading Forex, the good news is that youdon’t have to have lots of capital to trade Forex. Most investors can start with arelatively small investment of about $250. A great advantage to Forex trading is thatyou can leverage the initial investment amount up to 200 times your investment incertain situations. So if you are looking for a great way to trade, with a low initialinvestment, research Forex, to see if this type of trading is right for you to invest in.Being a forex or foreign exchange trader no longer means you have to work for abank in one of the worlds financial centers. These days you can trade on your ownbehalf, from anywhere.Since the rise of the internet many people are doing this from their own homes,making money in their spare time or even making a full time income. But what isforex trading and how does it work?
Superior FX Signals.ComA foreign exchange trader deals in currencies. He or she will sell one currency thatseems to be falling in value, to buy another that seems to be rising. There are alwaystwo currencies involved in a trade (a currency pair) because when you want to buydollars you have to have another currency to exchange for them.In the beginning it is best to be involved with just one currency pair. Most peoplestart out trading in the EUR/USD market, that is the euro against the US dollar. Thisis the biggest forex market. There is plenty of information available for this marketand it tends to have lower costs and be relatively stable.Nevertheless forex is a very volatile market. This means that the prices can rise andfall steeply and quickly. The risk is high. It is easy to lose money. In fact, some lossesare inevitable, so you should manage your account so that you never risk too muchon one trade. You can use stop losses so that your broker will automatically sell if theprice goes a certain way against you. The aim is not to have no losses, but to makesure that your profits are higher than your losses so that you end up with a net gain.You will need access to a computer with a high speed internet connection any timethat you want to trade. Unless you use a robot to control your currency trading, youwill also need time where you can concentrate on learning a profitable system andthen on trading itself. You pretty much need to be able to lock yourself away in aroom to do this, at least for a couple hours a day. It is no good trying to trade fromyour desk at your day job with your boss interrupting you, or using a computer in thefamily den with kids climbing on your knees wanting to play games. You must befully concentrated on the movements in the market or you could miss the rightmoment to either open or close a trade.If you are a cautious person who likes a solid investment with predictable lowreturns, you should not become a currency trader. Forex traders are people whoenjoy risk and love the challenge of trying to turn a profit in a fast moving market.It helps if you are strongly focused on your goals and not easily swayed by emotion. Itis important not to let fears of losses or dreams of huge wealth divert you from yourstrategy. You also need to stay aware of financial news, not only in your own countrybut in all of the major world powers, because this will affect the forex markets. Withthese characteristics and a good trading system in place, a foreign exchange tradercan reap substantial gains from his or her investment.
Superior FX Signals.ComThe foreign exchange markets are situated all around the world. Currency trading isa global activity. Every country in the world uses money and needs to change thatmoney into other currencies in order to trade or interact with other nations.Currency exchange happens at every level of society. As an individual, you may havechanged money when traveling on business or on vacaation. Or maybe you have soldsomething on eBay to somebody in another country. Their payment comes in to youraccount in their own currency, and the bank or other payment processor such asPayPal changes it for you. That is currency exchange at the root level.Foreign exchange or forex trading has a different purpose, however. When you aretrading on the foreign exchange markets you are not buying another currencybecause you need it. You are buying it in the hope that it will rise in value, so you canchange it back and end up with more money than you started out with.Of course, it is risky. The price movement could go against you and then you wouldend up with less money instead of more. So you will want to gather plenty ofinformation about currency trading before you start.Forex trading began in the 1970s when the major currencies were deregulated so thattheir values were no longer fixed. The banks and large investors quickly saw thepotential for making money from the changing prices.The main forex marketplaces are the big financial centers of the world. London seesthe highest activity with New York second and Tokyo third. Other major players areSydney, Zurich and Frankfurt.Originally you had to be in one of those places to trade money, or at least have atelephone connection with a broker who was there. It was very difficult for somebodywho was not on the spot to act fast enough to react to the sudden fluctuations in pricethat can happen in the forex markets.
Superior FX Signals.ComBut modern advances in technology have changed all of that. Since the rise of theinternet it has been possible to trade on your own account from anywhere. Thismeans that it has become easier and easier for the little guy to get a piece of theaction.While some people never think about foreign currency from one overseas trip to thenext, others are studying charts and financial information or even using automatedsoftware in the form of forex robots to make money from the rising and falling priceswith the aim of becoming financially free by trading on the foreign exchangemarkets.You can trade Forex from home with relative ease. Trading Forex from home is oneof the most popular ways day traders and small investors are able to reach theirinvestment goals from the privacy and comfort of their own home. If you areinterested in trading Forex from home, here are some tips.Trading Forex from home is incredibly simple. There are plenty of brokers thatenable you to trade in real time with great features. Finding a Forex broker isrelatively simple, however you should put lots of thought into which features youwould like, the information they provide their members and the ease of use of theirtrading software.Trading Forex from home is relatively easy once you have your computer set up and abroker picked out. Before you start to trade Forex with actual money, it is importantto know all the ins and outs of trading Forex as well as how to conduct research anduse your brokers Forex trading software. Many brokers allow you to try simulationtrading. A simulation trading environment is where you can trade in real timeforeign currencies with the actual software and features. The only differencebetween simulation and real trading is that with simulation software you don’t havetrade real money. This can be an excellent tool to learn how to trade Forex fromhome.Finding information from home regarding Forex is also very easy with the help ofForex forums, broker trading resources and Forex charts. Many investors use theForex forums to find out about new tools, spot trends in the market and hearcommentary on new products or forecasts. You can also find loads of information atyour broker’s site. Most brokers usually offer great charts to track currencies and
Superior FX Signals.Complenty of articles that can fill you in on information that can help you trade. Sofollow the above suggestions to trade Forex from home.One of the most basic Forex terminologies is ask price. Ask price is the price acurrency is offered for. When trading Forex, you will usually see both the ask priceand sell price for each currency listed next to each other.Base currency, stands for the currency that all your currencies are converted to onceyou close the trade. The base currency usually is the US Dollar for people doingbusiness in America.Going long and going short are also popular basic Forex terminologies. Going longmeans that you invest in a currency for the long term. Going short means that yousell a currency that is not yet owned by you- the seller. Going short can be a greatway to profit in certain situations, but can involve high risk.Pip is also a popular basic Forex term. Pip stands for the difference between the bidprice and the asking price. The range is also an important term because it offers theseller information on the highest and lowest prices of currencies being offered.So if you are interested in trading Forex, it is important that you read andunderstand the above basic Forex terminology.If you are into trading Forex, then you probably take analyzing Forex data veryseriously. Most Forex investors choose their trades each day by going over lots ofinformation, charts and opinions in order to analyze Forex data. Here are some greattips and resources for analyzing Forex data.Analyzing Forex data can be easy if you have and utilize the right tools. Most Forexbrokerages supply their traders with a wealth of information and many tools in orderto analyze their Forex data and make well educated and prudent trades. Just like anyother investment vehicle, Forex does have risks involved and you can lose yourmoney very easily if you make ill conceived trades, analyze your Forex data the wrongway, or hit a patch of bad luck.
Superior FX Signals.ComA great resource to use when analyzing Forex data are specialized Forex charts, Forexreports, and opinions written about the Forex trading market. Many people also lookto Forex simulation platforms to test out their Forex analysis process. On simulationplatforms, you can trade real time, just like normal, except you don’t have to wagerreal money. This way you can test your systems, strategies and analysis.Not only do Forex brokerages give you great resources, but they try to educate theirtraders on how to use them properly. For instance you can read online tutorials onhow to use certain tools, how to analyze data, and how data can be viewed. There aremany great ways to learn how to analyze Forex data, however, you have to learn howto use it to your advantage.Most Forex brokerages have their own software program to trade Forex. Forexsoftware is an important part of trading Forex, because it dictates how easy andquickly you can interact with your brokerage to buy, sell and trade Forex. If you arelooking for great a great brokerage, here are some tips on choosing a brokerage withgreat Forex software.For most people trading Forex, a minute or two can be an eternity. If you need tomake a trade, your Forex software should be extremely easy to operate and navigatequickly on almost any computer and help you make the right trade according to yourguidelines.Most Forex brokerages have simulation trading environments, where you can learnto trade Forex, use their Forex software to do your trading and wager credits insteadof real money. Most Forex traders when starting out should take advantage of thesesimulation environments to learn how to interact with their Forex software and tradethe foreign currency markets.Almost all Forex brokerages offer many of the same features, however the ease ofusing the software can make a big difference in how you navigate, employ importantfeatures and feel comfortable over all trading Forex. So if you are looking intotrading Forex, check out different brokerages Forex software, it can have a definiteimpact on your Forex trading.
Superior FX Signals.ComAbout The SystemThis system is an Intraday trading system, works best on the 1 hour chart for allcurrency pairs. However, it would give best results with trending pairs ( currencypairs with strong trend, like JPY pairs ) .In this system we are going to use moving averages to identify the trend – visualguidance only – and we are going to use price patterns to enter the market. Our exitstrategy will be based on support and resistance levels.It’s very important to pay attention to news releases and economic announcementsand STOP trading until the market reacts to the news. Usually after 15 to 30 minutes.As an intraday trader, it’s also very important to know what time of the day is best fortrading and NOT to trade anytime of the day, or any day of the week.If you’re not an experienced trader, please do not make any changes to this system.Test it on demo account for at least one month and more than one currency pair.TREND INDICATORSMA ( smooth moving average ) :Period 200Shift 0Apply to : weighted closeBlueSMA :Period 50Shift -10Apply to : weighted closeRedUP Trend = Blue Line Above Red line – Down Trend = Red line above Blue line
Superior FX Signals.ComEntry PatternWe are going to use the Triangle pattern as a trigger or setup to enter the market inthe direction of the main trend.The Triangle pattern is simply Two small trends ( upper trend – lower trend )crossing each other and form a shape that looks like a triangle.
Superior FX Signals.ComPrice usually moves inside that triangle and then we should see a breakout. Thedirection of the main trend is not important at all. We are not following the trend.We are trading breakouts.At the above example, the breakout happened in a down trend movement.But it could also be an Up trend breakout.Your main job now is to practice on recognizing triangle patterns. Once you learnedthis skill, the rest should not be a problem at all.Remember, you only need to see an uptrend crossing a down trend and form atriangle shape.
Superior FX Signals.ComTry to practice on 1 hour time frame or 4 hour time frame. Smaller time frames arenot recommended in the beginning.It doesn’t matter where the shape is formed, in the middle or at the beginning/end ofa trend. The direction that the triangle is pointing at, also doesn’t matter.One thing you should keep in mind, this pattern happens all the time. No matterwhat currency pair you are trading or what time frame you are using. And that’s a bigadvantage!So, feel free to practice on any currency pair you like. 1 hour/4 hour time frames fornow. And when you feel that you are ready to take the next step .. keep reading!
Superior FX Signals.ComSystem RulesThe first thing to do is to know the direction of the trend according to the trendindicator. If it’s a down trend, then we only enter sell trades. If it’s up trend then weonly enter buy trades.The next thing to do is to draw the support/resistance levels. We are going to usethose levels for targets.BUY SIGNAL1 – Up Trend2 – Triangle Pattern (Up Trend Breakout )SELL SIGNAL1 – Down Trend2 – Triangle Pattern ( Down Trend Breakout )Targets and StoplossSupport and resistance. If you don’t know how to work with support and resistancelevels, please take some time to read about it and understand it before you start usingthis system.Support and resistance levels are identified based on the price patterns and priceturning points that took place in the past. Support levels try to stop falling price as itattempts to drop even further. Resistance levels resist to the rising price thatattempts to go even higher.Support or resistance levels that were tested by the price and sustained the pressureby not allowing market to surpass them, are considered as strong levels. If Supportlevel is broken it becomes future resistance level. If resistance level is broken it playsa role of support for future market moves.
Superior FX Signals.ComExamplesEUR/USD – 1 Hour ChartAfter an Up trend was confirmed by Moving averages cross, a triangle pattern wasformed and we waited for a breakout in the direction of the trend.Few hours later, a breakout happened and we opened a BUY order based on thesignal we had.We placed our stop loss at the last support level, and placed our target at theresistance level.You can always use a trailing stop to lock your profits and protect your trade fromsudden reversals.In this example our profits were 100+ pips
Superior FX Signals.ComNext Example ..EUR/USD – 4 Hour chartMy favourite time frame is 4 hour chart. It gives more clear signals and more time tospend with friends and family without having to watch the chart all day long .. and italso gives more pips to collect. In this trade, the major trend was up trend. So I knew that I’m only allowed to openbuy orders.We had a triangle pattern formation, followed by an up trend breakout .. perfect!All we had to do is to set the stop loss at the last support level and set the target at thenext resistance level.This time, profit was 400+ pips
Superior FX Signals.ComReversalsSometimes, price would move in the opposite direction of the current trend for awhile before it reverses back.Usually, it’s not recommended to trade in this case and just wait until price reverse.But .. for experienced traders ONLY there is another option: trading reversals!Example:EUR/USD – 4 hour chartThis kind of trades are risky, and only recommended for experienced traders only.It’s also recommended to follow other strong reversals signs besides the trianglepattern, like double tops/bottoms or heads and shoulders.And with this kind of risky trades, it’s highly recommended to use maximum moneymanagement plan.Example : if you usually trade with 1.0 lot size and 3% risk of your invested capital.Then at this case you should trade with only 0.5 lot size and 1% risk.
Superior FX Signals.ComEasy TargetsI know that sometimes it not easy to spot support and resistance levels or set themcorrectly, especially for new traders.So here is a way to get this done automatically for you, even if you don’t know thedifference between a support a resistance!We are going to use .. Fibonacci levels!This is a very powerful tool .. just look at it! Notice how price – religiously – followsFibonacci levels and moves between them.All you need to do is to place the Fibonacci levels indicator – comes free with almostall trading platform like Metatrader – at the high/low of the last wave before thebreakout.If it’s an up trend breakout, place the 0 level at the low of the wave, and 100 level atthe high. The exact opposite if it’s a down trend breakout. Place the 0 level at the highand the 100 level at the low.
Superior FX Signals.ComHere is another Example ..
Superior FX Signals.ComTrading ExamplesEUR/USd – 1 hour ChartSignal = Sell @ 1.2680Stop loss @ 1.2758Target @ 1.2552Profit = 128 pips
Superior FX Signals.ComEUR/USD – 1 Hour chartSignal = Sell @ 1.2758Stop loss @ 1.2828Target @ 1.2604Profit = 154 Pips
Superior FX Signals.ComMarket HoursThe forex market hours stretch from Monday morning in Sydney, Australia to Fridayafternoon in New York. During that time the market is open somewhere around theglobe at all hours of the day or night.However it is not a 24/7 market because it does shut down on weekends. 24/5 wouldbe more accurate.If you need to know the exact times that the markets open and close, you have to taketime zones into consideration. It is very simple when expressed in UTC. This isUniversal Coordinated Time, formerly known as Greenwich Mean Time. This is thestandard (winter) time in Greenwich, London which is the point of zero longitude onthe globe.So, the normal forex market hours are 22.00 Sunday UTC to 22.00 Friday UTC. Thisis 10 pm in the UK in winter time.New York is 5 hours behind the UK so the global forex market opens and closes at 5pm Sunday/Friday in New York, 2 pm on the US west coast, 11 pm in Germany, 8 amMonday/Saturday in Sydney.Things get a little complicated when you start to try to take summer time daylightsaving into account. This makes one hour difference in countries that observe it. Butdaylight saving operates in a different way in the southern hemisphere countriessuch as Australia which have summer time from September to March instead ofMarch to September.The hours of the different major national markets are as follows:Sydney: 10 pm to 7 am UTCTokyo: 12 midnight to 9 am UTC
Superior FX Signals.ComLondon: 8 am to 5 pm UTCNew York: 1 pm to 10 pm UTCOr we can express that in EST (Eastern US time):Sydney: 5 pm to 2 am ESTTokyo: 7 pm to 4 am ESTLondon: 3 am to 12 noon ESTNew York: 8 am to 5 pm ESTYou can see that these correspond to 24 hour cover.However, this does not necessarily mean that trading will be good at all of thesetimes. Just after a major market opens, the prices can be very volatile andunpredictable. Many traders will stay out of the forex market for up to an hour fourtimes a day when the financial markets are waking up in these major cities.The US dollar is the most traded currency by a long way, involved in 2.5 times asmany trades as its nearest rival the euro. This means that events in the USA have agreater impact on the financial markets than events in other countries. The New Yorkmarket tends to slow down around 3 pm local time (8 pm UTC) and if you areinvolved in a US dollar pair, this can be a good time to stop trading for the day.So theoretically you can trade 24 hours a day from Sunday night to Friday night.Automated software in the form of a forex robot can even make this physicallypossible. However, a cautious trader will choose his times and will not be activeduring all of the forex market hours.
Superior FX Signals.ComMargin TradingForex margin trading is a way of applying leverage to increase the purchasing powerof your money. Leverage simply means using a small sum to control a much largersum. This is possible because it is unlikely that the value of a currency will change bymore than a certain percentage over a short time. So you can place a few hundreddollars in your brokerage account to trade on the margin - the amount that you thinkthe price will fall. Your broker will in effect lend you the balance.Trading on margins is also known in stock and futures trading, but because of thespecial nature of currencies, you can get a lot more leverage in the forex market.Depending on your brokers terms, you may be able to control 50, 100 or even 200times your account balance.This can lead to big profits if you are successful, but it can also mean big losses if not.In general, the more leverage you use, the more risky your trading is.We can understand leverage and margins if we consider an example.Imagine that the current rate on the British pound to US dollar forex market isshown as GBP/USD 1.7100. So to buy one British pound you would need $1.71. If youexpected the value of the dollar to rise against the pound you might decide to sellenough pounds to buy $100,000. If your broker used lots of $10,000 each, thiswould be 10 lots. Then you would sit back and wait for the price to go up.A few days later you might find that the price had moved to GBP/USD 1.6600. Sureenough, the dollar has risen and the pound is now worth only $1.66. If you sell yourdollars now and buy back into pounds, you will have made a profit of 2.9% less thespread. 2.9% of $100,000 is $2,900, so that would be an excellent trade.But most of us do not have $100,000 spare cash that we want to trade on thecurrency exchange market. So here is where the principle of forex margins comesinto play.
Superior FX Signals.ComSince you are buying and selling different currencies at the same time, your ownmoney only has to cover any loss that you might make if the dollar falls instead ofrising. And you would put a stop loss into place to limit that loss, so $1,000 might beall you needed to have in your account to make this $100,000 purchase. Your brokerguarantees the other $99,000.In fact many brokers now operate limited risk amounts where the account willautomatically close out the trade if whatever funds you have in your account are lost.This prevents margin calls which can be disastrous for a trader because they meanthat you can lose more than you have. But with a forex limited risk account that isnot a possibility. The brokers software that you use to control your account will notlet you lose more than your account balance.Using leverage in this way is so common in currency trading that you will soon do itwithout even thinking about it. Still it is important to keep in mind the risks. Lowerleverage is always safer and you may never want to go to the maximum forex marginthat your broker would allow.Always remember that Forex trading like any investment is not a sure thing. Justlike any type of investment or investment vehicle there are risks involved. No matterhow much you research your data or how much thought you put into your trading,you can always lose money.Another important Forex trading tip is that if you are just starting out, learn as muchas possible about foreign exchange trading. There are many theories, strategies andtools to help you trade Forex. Learn which tools are available and how to use themeffectively. You shouldn’t decide to just throw money around into an investment andgo with the flow. Forex trading is not a casino game and you can lose thousands ofdollars of your investment.One of the most important Forex trading tips is to choose your trading brokercarefully. Don’t just enroll with a trading broker because they offer you greatincentives or have a great web site. Shop around; find a Forex trading broker thatcan help you reach your investment goals. There are plenty of Forex trading brokersand many of them might not have the resources to help you with your individualinvestment needs. So if you are looking to trade Forex, follow these Forex tradingtips.
Superior FX Signals.ComMany people choose to invest and trade in the Forex markets because it is very easyto get started. Many Forex brokerages require a small minimum investment, usuallyabout $250. With this small investment, you can leverage your money to invest inthe market by up to 200 times in certain situations.Finding a Forex broker is also important because each broker’s tools and resourcesare different. You might find that a Forex broker has great resources andinformation to analyze and spot trends in currency trading. Finding a Forex brokeris also important because you can pick and choose which software platform to use tomake trades. You might experience that some brokers have awkward softwareplatforms that can be difficult to understand or to execute a trade on. Doingimportant research in the beginning can help you find the right Forex broker tofacilitate your trades and research.Another great tip when finding a Forex broker is to see if the broker offers simulationtrading. Simulation trading is a great way to use the broker’s software and tools inreal time without wagering real money. So if you are interested in investing andtrading in the foreign currency market, look at different Forex brokers for the bestsoftware, information and resources. Doing lots of research on brokers will helpfinding the right Forex broker to fit your needs.Most Forex brokers help you trade by providing you with up to the second, real timeinformation in the form of Forex charts. Most Forex charts are available on anymajor currency, exotic currencies and major market indices that can help you predicttrends and performance. Not only can you check out information fast and easy withcharts, most brokers allow you many features that can help you view charts indifferent ways. For instance you can view a standard bar chart, dot chart, or evenforest chart which can easily show you the up and downs of your specific focus.Many Forex brokerages also include daily commentary and information on how toget the most out of your charts, by teaching you technical analysis and the ways totease information from your Forex chart. If you would like to trade Forex, look intousing powerful tools such as Forex charts in order to make educated investments.
Superior FX Signals.Com DISCLAIMERU.S. Government Required Disclaimer - Commodity Futures Trading Commission Futuresand Options trading has large potential rewards, but also large potential risks. You must beaware of the risks and be willing to accept them in order to invest in the futures and optionsmarkets. Dont trade with money you cant afford to lose. This is neither a solicitation nor anoffer to Buy/Sell futures or options. No representation is being made that any account will oris likely to achieve profits or losses similar to those discussed on this web site/ebook. Thepast performance of any trading system or methodology is not necessarily indicative offuture results.CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVECERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATEDRESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVENOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATEDFOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OFLIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TOTHE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NOREPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TOACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.No representation is being made that any account will or is likely to achieve profits or lossessimilar to those shown. In fact, there are frequently sharp differences between hypotheticalperformance results and the actual results subsequently achieved by any particular tradingprogram. Hypothetical trading does not involve financial risk, and no hypothetical tradingrecord can completely account for the impact of financial risk in actual trading.All information on this website or any e-book purchased from this website is for educationalpurposes only and is not intended to provide financial advise. Any statements about profitsor income, expressed or implied, does not represent a guarantee. Your actual trading mayresult in losses as no trading system is guaranteed. You accept full responsibilities for youractions, trades, profit or loss, and agree to hold the authors/publishers and any authorizeddistributors of this information harmless in any and all ways. The use of this systemconstitutes acceptance of our user agreement.