Do you know that more and more homemakers today are trading Forex?
It's no longer a secret and as a matter of fact, the number of
homemakers who later become successful traders is rising fast. Despite the busy
days of managing everything at home, these homemakers still manage to trade
Forex without abandoning their tasks, and not only that but these homemakers
also contribute enough to their family financially. This story is not
exaggerated at all. It's pure reality. The good news is, believe it or not, it
can also be your life story.
Before you can get to their level, you must go through the whole
process. Fortunately, you can choose from one of two paths-the difficult way
and the wise way. The two scenarios below will help you understand the
differences:
Scenario A-the difficult way
Maria is a housewife with two kids. Her husband is the backbone of the
family; financially speaking. He takes home a good sum on his check every month
and provided his wife and their kids all of their needs. Nonetheless, being so
effective and efficient at doing her task, Maria felt that she is having too
much free time around the house. As a result, she began searching for something
that might be worthwhile to do and found Forex to be the suitable one for this
purpose. So, she started buying DVDs, home coaching, and even attended online
seminars hoping that she would be able to make money consistently. Eventually,
she ended up spending $5,000 for the whole thing before she even started
trading Forex with a real account. She diligently practiced everything that she
acquired from the resources that she bought. With great discipline, she finally
had the confidence to trade using a real account. Maria told her husband that
she is ready to trade with a real account. Her husband supported her and gave
her another $6,750 to open a real account. So, she started her Forex trading
journey carefully and conservatively because she did not want to waste her
husband's hard-earned cash. A month later, her account is already up to $500
making a total of $7,250. Her husband and children were very happy about this.
The next month, she lost $75 so her total is now $7,175. The month after that,
she added another $730 to her account so the new total is $7,905. So far, the
money she spent as an investment is $5,000 (in terms of business, this is not
classified as an expense because you hope to bring more money by spending it) and
the amount of money gained for three months is $1,155. All this happened in 6
months-3 months in training and honing her trading skills and 3 months in real
trading. She relied on herself to do the trading and managed to do so and more
importantly her husband and children are proud of her. It is indeed a great
job.
Scenario B-the wise way
Jennifer is a homemaker with two little boys and a daughter. Her husband
works from 9 to 5 and he never missed a chance to take additional tasks in order
to impress his boss. Meanwhile, Jennifer herself is pretty busy with her three
little ones. They are very active around the house and so, Jennifer doesn't
really have that much time to take a break during her hectic time. One day, her
friend introduced her to an online business and told her that she could make money
from the convenience of her home without abandoning her kids. Moreover, her
friend told her that she can do this even without any skill or knowledge. Out
of curiosity, Jennifer asked them how. Her friend told her that there's a
service that can help her achieve this. Not only that, but the service also comes
with a learning opportunity. Jennifer spent some time thinking about it and
convinced herself that she can do this because even though she is busy she
yearned to be able to do something to help build her children's future and take
some burden off her husband's shoulder. So Jennifer talked about it with her
husband and he handed her $6,200 because they don't really have that much cash
for this. Jennifer then set up a real Forex trading account with her $5,500 and
subscribed to a trading signal service just as her friend told her. She paid
$100 for the trading signal service and she get the help of a Forex professional
to do the most difficult part in trading for one month. She wanted to gradually
build her account and don't want to be reckless and greedy so she traded Forex
conservatively. At the end of that month, she managed to bank $520 making her
balance $6,020. It's a good start. And then she paid another $100 for the
next's month's service. During that month she took home $300 and raises her
account balance to $6,320. Not bad. She took another $100 from the $700 that
she set aside to pay for trading signal services. This time around, she added
$683 and ended up with $7,003. Summing up, Jennifer set aside $700 for the
purpose of paying the trading signal service and already spent $300 from it and
the amount of money she added to her trading account so far is $1,503.
Everything happened in a short period of 3 months and Jennifer is now getting
better in her learning and soon she might be able to trade by herself and more
importantly, she can contribute to the family financially. Great job, Jennifer.
The moral of the story is you can do it on your own and spend a lot more
time, effort, and money (she needed $5,000 to prepare herself and another $6,750
to fund her real account) or you can cut the time and only prepare almost a
half less money ($700 for the purpose of paying monthly subscription fees and
$5,500 for the opening of a live Forex trading account). Both of them aim to
become proficient Forex traders and needless to say, both of them have the
same opportunity. The differences between the two paths are clear. You decide
which one to choose. Now, assuming that you choose to go with the wise way, you
only have to follow the 3 simple steps below:
Step 1: Find yourself a trusted Forex trading signal service and pay the
subscription fee. This fee will grant you the ability to use their service for
the next 30 days (one month).
Step 2: for the most part, you will have to wait for the trading alert
to hit your email or cell phone, or trading platform. Whenever a good trading
opportunity emerges, the service will send you a trading signal complete with
entry and exit points and also stop loss level in the form of email or text
message (SMS) or trade alert. This can be twice a week or even more depending
on the market condition. In the meantime, you can browse the website to find
trading tutorials and resources so you can learn how to become a successful
trader yourself.
Step 3: once you get a trading signal you need to enter the orders (open a
buy or sell position and the stop loss or take profit level) exactly as
written. A trading alert will include where to open a buy or sell position and
also where to put a stop loss or take profit level. If the trader(s) from the
service sees some changes in the market after you enter the position, they will
update you with another alert telling what step you need to take. Sometimes the
recommendation is to exit the position or to modify your stop loss or take
profit levels. This will help secure part or whole profit you have from
dropping so you can maximize your profit.
Those are the only things that you need to do. To be bluntly honest,
nothing is even near this level of ease and comfort in the Forex trading world.
The convenience is why many people use a trading signal service. So, if you are
ready to go with this path, there are several tips that can help you maximize
the use of the trading signal service:
Some prerequisites before you continue...
Before you can make money or expect to do any analysis you must first
familiarize yourself with the new environment. Learn as much as you can about
the terms used in the industry and try to understand the basics of how the
market works. You don't have to go too deep just as long as you know how things
work. Much of the information you need can be found simply by using Google and
enter the Forex glossary as the keywords or terms. Also, you need to familiarize
yourself with the trading platform that is widely used in the Forex world. Meta
Trader 4 (often abbreviated as MT4) is no doubt the most popular trading
platform in Forex trading. Meta Trader 5 is already on the market but the basic
function is the same and MT5 is still not widely used compared to MT4. To
familiarize yourself with MT4, you can go to Alpari U.S. (or Alpari UK if you
are not a U.S. resident) to register a demo account and download their MT4
platform. The familiarizing phase will usually take about two to three weeks at
most.
Make sure you use the same price feed or Forex broker.
It is essential that you use the same price feed that the Forex trading signal
service uses. Of course, the reason is that there is no central data center
that feeds Forex brokers with prices. Another trading market such as the futures
market has a central data feed/clearing service like CME (Chicago Mercantile
Exchange) that acts as the sole price feeders to futures brokers on ES (S&P
500 futures). Thus, you will the same price for ES even though you use a different broker. Unfortunately, this is non-existent in the Forex market. You
will definitely see the different prices on the different brokers. The difference might
vary from 1 to 5 pips and this is huge. It might not seem huge the first
time but over time the difference will accumulate to a gigantic amount. If
you are trading using a standard account (100K contract size) 1 pip is equal to
$10 so 5 pips are equal to $50. Now, if you have a big account and trade 5
standard lots the amount that you will lose can be anywhere from $50 to $250 in
a single trade. Suppose that you trade once a week with 5 standard lots the
amount that you will lose over a period of 1 year is anywhere from $2,600
($50x52 weeks) to $13,000 ($250x52 weeks). That's a lot of money. This is why
it's crucial to use the same Forex broker that the service uses.
Stay close to your computer or cell phone.
This is also important. There are three main delivery methods used by Forex
trading signal services: email, text message (SMS), and pop-up alert via your
trading platform. You can imagine what will happen when you are not near your
computer or cell phone, right? Chances are you will miss a good trading
opportunity or two. Also, you need to be mindful if you use a laptop or a
notebook because there is a chance that your laptop will run out of battery so
make sure you plug the cord. A blackout is rare but it is also good if you have
a UPS. Sound is also important so you can hear any incoming email or text
message. Last but not least is to make sure to monitor the battery of your
cell phone or smartphones.
Never doubt a trading alert.
The rule of thumb is to enter a trade when you receive a trade alert. Do not
hesitate. Hesitation can lead to procrastination and procrastination can lead
to missing trade opportunities. This is why the number one rule when you use a
signal service is: never doubt or hesitate to enter a trade recommended to you.
One thing that is clear in Forex trading is you never really know for how long
a trend will last but 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 you feel about it. Riding the trend is only possible when you are in the
market not outside the market.
Don't try to modify a trading alert/signal.
This is the one subject often overlooked. You should never try to modify the
trading signal. The signal comes from the trader's analysis and you might not
understand his method of analysis and therefore, you should not attempt
modifying the signal. When you receive a trading alert that recommends you to
buy EUR/USD as 1.3000 it means you should buy at the exact price. Every pip is
important because there are considerations behind every trading signal such as
trading technique, risk levels, the currency pair's unique behaviour, and
current market condition. Thus, modifying any element in the trading signal
will affect the trade outcome. That is why it is better to enter the trade just
as recommended and leave the trade unless the trader updates you with some
changes due to market conditions. The only time you can modify the entry or exit
order is when you already understand the trader's trading method.
How to measure the trading performance?
A good Forex trading signal service can deliver anywhere from 5% to 30% per month.
Those figures are the average and therefore, the actual result will vary
depending on your risk tolerance. If you are a risk-taker, you might gain more
but there is also a chance to lose more and if you are a conservative trader, you
will obviously gain less with a reduced chance of losing. One thing you need to
avoid is jumping from one trading signal service to another trading signal
service. There is really no guarantee that the other trading signal service
will perform better. High risk always equals high reward. The one thing that
you should seek out in this business is consistency. It is far better to
subscribe to a service that can consistently deliver 10% to 25% than to go with
the one that delivers 50% this month and then -20% the next month. Remember,
consistency is very precious in this business.
Only subscribe to a genuine Forex trading signal service.
The task of finding a genuine and great Forex trading signal service is not
easy. The fact that the internet is filled with hundreds of Forex trading
signal services makes it even more difficult. Every Forex trading signal
service claim that they are the best and it takes time to really find the one
that stood up to the claim. Picking a genuine, great service involves
evaluating several factors such as reputation, result, and proof. Of course, it
is not necessary to subscribe to each one of those services just to find the
genuine one because it will cost money and time to do so. If you choose the
wrong service you will not only end up in disappointment but also you will lose
money not because of the fee but in the form of losing trades. Moreover, you
will lose good trading opportunities and time. This is why you should only deal
with a genuine Forex trading signal. Great service will benefit you in the
long run and there is no substitute for a successful Forex journey. One last
note, don't fall for services that claim they have lower fee because lower fee
does not equal higher profitability. You might save some bucks but you might
lose a lot in unprofitable trades.
Trading Forex is not easy and it is even more difficult if you don't
know where to start. Acquiring good information is always the first important
step and you already have it. The simple steps and guidelines provided above will
help you greatly in your Forex journey as they did to other homemakers around
the world.
The next thing to do is of course to take the first step in your Forex
trading journey because obviously, knowledge and information means nothing if
you don't implement them. Find out about the best Forex trading signal service
in the market today by visiting this website
[http://www.forextradingsignalserviceforhomemaker.info]
Article Source: Linda Wilkinson
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