subject: Homemaker's Guide to Using a Forex Trading Signal Service [print this page] Homemaker's Guide to Using a Forex Trading Signal Service
Today, more and more homemakers are attracted to the idea of making money from the comfort of their home. Forex trading is one of the top choices that come to mind when people think about online business and it is widely known that assisted trading is the easiest path to making money from forex trading. Assisted trading, also known as forex trading signal service, has benefited many new comers because the service is obviously designed to help new traders to make money from forex even if they know nothing about trading forex. The service alerts the subscriber whenever a good trading opportunity emerges. The ability to skip the learning process and the convenient of being alerted when there is a good trading opportunity are the main reasons why new comers are attracted to subscribe a forex trading signal service. Even so, subscribing to a trading signal service alone is not enough. Here are several things that can guide you to unlock the full potential of a trading signal service:
Use the same broker with the one that the service uses.
It is important to use the same forex broker that the trading signal service uses. The reason is because forex market is not a centralized market. In a centralized market, the price comes from the same exchange so you will see the exact same price on every broker. In other word, the price for ES (the futures contract for S&P 500) at any time is the same for every broker. The situation for forex is different and that is why, you will see differences in the price feed for every broker. The price differences might be vary from 1 to 5 pips and this is huge. It might appear small in the first time but as you will see it is actually huge. On a standard account (100K contract size), the amount is $10 to $50 per one lot so if you have a big account and trade 5 standard lots you will lose $50 to $250 in just one trade. If we assume that you trade once a week with 5 standard lots you will lose between $2,600 ($50x52 weeks) to $13,000 ($250x52 weeks). This is why it is important to use the same forex broker that the service uses.
Keep your computer or your cell phone on.
This is also crucial. The main delivery methods for trading signals are email and text message (SMS). And what happen when you are not near your computer or cell phone? Of there is a chance that you will miss a good trading opportunity. If you use a laptop or a notebook make sure you have enough battery or just plug the cord so you don't have to worry about the battery. If you use a cell phone don't forget to watch for the battery also. Sound is also important so you can hear any incoming email or text message.
Always enter when the service send you a trading alert.
It important to always enter the trade when the service alerts you a good trading opportunity because you never know how much profit it can bring you. Don't be like those who regret because they don't enter a trade when they see it. One thing about forex trading is you never really know for how long a trend will last. The only thing you know for sure is the amount of risk that you can take. This is why you should treat every trading opportunity the same no matter how unlikely it may seem. There is a saying in the market "you should ride the trend" or "the trend is your friend" but how can you ride the trend if you don't enter the trade?
Never modify the order.
One important subject that many people overlook is order modification. Every trading signal comes with pre-meditated calculation. The trader first need to evaluate the market condition, compares it with similar situations in the past, calculate and anticipate the possible movement and then, after this is all done, he send the recommendation to you. That is why modifying any element in the trading signal might affect the trade outcome. So it is better to enter the trade just as recommended and leave the trade unless the trader update you with some changes due to market condition. You can modify the entry or exit order if you already understand how the trader and his method work. Of course, it will take a while to be able to do this but for starter, don't ever modify the entry or exit order.
Forex trading signal service is a good start if you want to start trading forex but know little or nothing about it. However, just because you use a trading signal service doesn't mean that you will automatically profit. Knowing how to properly use the service will enable you to really benefit from it. You can become successful without sacrificing a lot of time to sit in front of your computer to trade. That being said, forex trading, like any other online business, is not a way to quick riches. Treat forex trading as a business and build your business carefully and you will reap bountifully quicker than you thought.
