Market Analysis and Trading Signals - Risk Capital Management

Market Analysis and Trading Signals

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Market Analysis and Trading Signals

Fourteenth session of Forex Training

Welcome back to Forex professional training in financial markets.

In this session we will talk about market analysis and trading signals plus signal details.

Market Analysis

When an amateur starts working in this business they need to compare their analysis with a professional's work.

Usually these analyses are based on a merchandise and foreign currencies.

Analyses are based on fundamental rules and theories, however they are also very simple to use, like using indicators.

There are several different methods of data analysis that we will look at.

Price action is an analysis based upon price behavior and changes; this is one of the best ways to analyse a trade before you make it.

Market Analysis and Trading Signals - Fundamental Rules and Theories- Price Action of Market Trend

You can base your analysis on Elliott waves.

You can also base it on Andrew's Pitchfork.

Or lastly you can base it on Harmonic patterns.

We usually upload our weekly analysis, based on Elliott Waves and using methods such as indicators, onto our website.

You can follow us on Facebook for more information. We also email our analysis out to people, this usually happens between 9 – 11am.

Our suggestion is that you should study price action intensely and do the analysis yourself.

Then to make sure that your work is good enough to compare it to a professional’s analysis, and hopefully you will be on the right track.

Sometimes traders strongly believe in their trades, for example, they may believe that the market is going up and it is hard to change their perspective.

When you compare your work with a professional party, you see another point of view about the market and that will definitely help you make the best trade possible.

This is why we insist that you should always compare your analysis with professional ones.

Market Analysis and Trading Signals - Elliott Waves, Andrew's Pitchfork and Harmonic Patterns

The best time to do your analysis is on Saturdays and Sundays, because the financial markets are closed and you are not looking for a spot to place any trades at that time without more speculation; this will leave you more time to contemplate and a greater focus.

If you would like us to help you with this matter simply send us an email to: [email protected] with your full name and your main email address and ask for the latest analysis and to join our mailing list.

You can also follow us on Facebook at (www.facebook.com/), or keep yourself updated with broker’s deals and offers simply visit our page on Facebook.

Market Analysis and Trading Signals - Market Analysis by professional team - Expert Advisor MetaTrader

Signals

Now it is time to talk about signals, which is an area many traders show interest in.

Basically signal is a trade opportunity provided by a signal provider.

The Entry or Entry price is divided into two groups:

a) Current price – in which parties make their trades based on the market current price index.

b) Pending order – in which parties wait for desired prices for a certain strategy. This type is more popular amongst traders as they have more time to consider their speculations.

Closing price or Exit price, has two particular characters because any trade may be made on either correct or incorrect signal data.

a) Profit limit (take profit)

b) Loss limit (Stop loss)

Remember keeping a trade open and hoping that it will come back to a position where you can make profit is a very risky business in which a trader may receive a margin call.

Market Analysis and Trading Signals - Profit and Loss Limit - Current Price and Pending Orders - Buy Sell Stop

Symbol – It is important to know the symbol in signals, for instance is it Gold or is it a foreign currency.

Direction – This is basically showing whether it is a Buy (Long) or Sell (Short) order.

Risk percentage – In this section a signal provider reveals how successful the signal may be.

Expiry Date – This is usually used for pending orders; a signal provider will set an expiry time for that signal. For instance, you may be able to make your trade within the next two hours but after this time the signal will expire.

Update – This is important because of the market fluctuation. A signal’s data must be up to date, to compensate any wrong speculation, known as Break Even, or it may confirm the previous signals on that certain spot.

Essentials about signals

There are several vital things you must know about signals.

Signal types based on time and duration are divided into 3 categories:

a) Short term signals

b) Standard or premium-term signals

c) Long term signals

Market Analysis and Trading Signals - Long and Short Orders Symbols - Break Even - Risk Management Percentage

Some traders’ methods are based on taking profit from 10-20 pips, others may desire to derive profit from 30-50 pips, while the rest may desire to take profit from more than 100 pips.

Signals based on the number of trades can have different points of entry. So we split them into two categories:

a) Single trades

b) Multi trades

Here is an example that explains these categories. A signal provider figures that market trend direction on Oil, with the price at 104 USD, is downward.

He then offers two signals, one is on 104 and the other on 105. In this way, a trader can close both accounts on 102 and derive profit.

In this specific type, it is better for all orders to be on the same direction, for instance all of them should be buying or selling.

Market Analysis and Trading Signals - Multi and Single Trades - Short, Medium and Long Term Strategy

Signal pricesSignal prices are different; they really depend on the reliability of the signal provider, some are free and some cost as much as 500 dollars.

Signal delivery method

Signals can be distributed in many ways, the main ways are by

a) SMS (text message)

b) E-mail

c) Via the Website

Usually the professional way is using SMS, meaning a trader is able to receive the offer on his cell phone.

Traders may not be able to see offers on emails or websites at the appropriate time, meaning they could lose an offer position.

Profitable or Not

 Many traders ask “can using signals be profitable?”

The answer to this question is simple, it depends entirely on the trader and their investments.

Market Analysis and Trading Signals - Delivery Method by Mobile App, Text and Email - Profit and Loss Ratio

For example, a trader wants to deal with 3 different signals, if they risk all their investments in the first one, they may lose all their bank roll or they could double their bank roll if the signal is credible.

So we cannot establish a certain amount of profit each month and it varies from trader to trader.

We recommend that, alongside risk management, you should not risk more than 1 - 5 percent on each trade.

Minimum Investment

The minimum investment that you can make is important.

Some signals involve high Pip range and Pip rate, so, it is important that the trade and the amount of transaction is set.

For some trades that offer can be 400 to 500 pips in a signal, for which you need at least somewhere around 5,000 to 10,000 dollars investment.

So it is important to have a clear view of a trade and the amount of transaction it offers before you take a signal.

You can also enter our website to find out more about signals and educational materials that you may need, you can also find a suitable signal provider as well.

Before we finish this session you should know one important thing about signals.

Market Analysis and Trading Signals - Money and Capital Management - pip Range - Minimum Deposit and Investment

Due to the fact that a strategy can make multiple amiss signals alongside of several valid signals, it is strongly recommended that you should make all the trades that your desired signal provider generates.

Also you can recognize the efficiency and utility of a signal provider only when you exploit all the signals that it generates.

That concludes this session, until next time and another session take care.

Linkages & Notices

You can also view the video of this session available on the PFOREX Financial Video tutorials.

You can also find the video of this session on PFOREX YouTube Channel.

PFOREX Assist app provides BEST & FREE trading signals and market analysis. PFOREX Assist is available on App Store (iOS version) & Play Store (Android version).

The PDF file of this session is also available.


PFOREX Educational materials in text and video formats are developed by PFOREX Department of Education to enhance and improve investors’ knowledge and trading skills. Due to high risks and volatile fluctuations in financial markets, traders and investors must develop their trading skills and knowledge. It is strongly recommended to apply Risk and Capital Management when trading in financial market.

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