Forex: Don't Stare At It Forever

One disadvantage of forex trading is that you practically have to invest so much time to monitor the forex market for profitable entry and exit points.

Good for you if you can afford to sit in front of the computer for hours on end to monitor the forex market. If you can't, you can go for automated orders like stop loss order. Yes, you can walk away from the computer comforted by the knowledge your losses are kept at a minimum, but you may lose out on great profits because your limit order kicked in too soon.

If you don't have the time to watch forex market movements on your computer screen but still want to realize as much profit, you might want to sign up for a forex signal service. A forex signal service monitors and analyzes the forex market for you and send its findings directly to you - through email, desktop, cell phone or HDPA.

Take note, though, a forex signal service does not come for free and you have pay fees upon signing up, although some forex brokers might offer this service as an add-on, integrating this service into their trading software

Usually, forex signals can only do service for a limited number of currency pairs. Almost all offer signal services on EUR/USD, USD/JPY, GBP/USD, and USD/CHF, although specialized signals may offer other forex pairs.

Forex signals are primarily based on a technical analysis of forex market conditions. Most forex signal providers combine indicators to identify main trend and identify entry and exit points. The result is then sent to subscribers who can either act on them or pass up on the opportunity. Still, other service providers will execute the trade on your behalf.

There are different types of signals that can be derived from the different charts.

The Simple Moving Average (SMA) shows "buy" signals when a currency price rises above the average line. The SMA indicates a "sell" signal when the price falls below the moving average line.

The Moving Average Convergence Divergence (MACD) has a signal line that tells a forex trader to buy if the price is above the line, or sell if the price is below the line.

Volume Indicators, meanwhile, indicate the interest of forex traders in the market. A high volume trade may indicate the start of a new trend while low volume indicates low investor confidence.

But you don't have to analyze these indicators at every turn, you can subscribe to forex signals service.