 | Hello again!
Welcome back on our pages and warm greetings to those who are here for the first time. Over last week we had an interesting e-mail exchange with a person interested in Forex trading. The topic was who and why should use services of a trading signals provider, such as ourselves. This is brought up often enough in e-mails to us, as well as on pages of various exchange boards and other places. Here is what we think about it.
First of all using this kind of services is not for everybody. It should be a goal of every trader to eventually trade on his/her own. If somebody should decide to subscribe to a service provider, those trades ought to done in separate accounts so as not to create confusion and avoid conflicting trades. To really get the benefits , or faults, of any service, one should give it some time, like 3-6 months. Just because a signal provider is showing good results, it doesn't mean it's suitable for everybody. One has to view it's own commitments and time availability. It makes no sense to follow signals that are issued around the clock if a person can't sit in front of computer all day. On the other hand, very active traders probably don't get much value out of provider who sends signals once a day, like us. Our website explains that we try to cater to traders who have other daily commitments and don't have time sit in front of computer all day.
There is one thing missing in aspect all the discussions about signal providers. Being "forced" to sit and wait for a signal to arrive can help in development of two critical aspects of trading- PATIENCE and DISCIPLINE. And if the service makes you some money, that's great!
Who are services not for? That's really simple. If somebody doesn't wish to learn to become a trader but only is interested in making money (nothing wrong with that), then why bother? It's better to have somebody else manage money for you. Less time commitment and relation is more professional.
We had a decent week, our services were positive for time period, except for "Daily Pound" which lost 33 pips. "Rainbow" was very active, with 8 trades. We carry one new trade over the weekend, long position in EUR-AUD. There will likely be less trades this coming week, but who knows for sure? |
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Here are the results we achieved last week:
- Rainbow made us 325 pips in closed trades;
- Daily Pound lost 33 pips;
- Daily Euro gained 21 pips for the week;
Follow the link on the right to view details |
Last week's results.
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Our latest "Trade of the week". We went long GBP-CHF. Expectation was a rather quick resolution to this trade. Well, that didn't happen. At the end of the week we decided to take profit here, even though we didn't reach our target. We exited at 2.4230 or 39 pips profit. Subscribers were notified, as always. |
Let's take a look here at our loosing trade in USD-CAD, and why we closed it when we did. That's a trade from previous week, it was filled at 1.1151. After our entry was reached, prices continued against as for the rest of Friday. Prices gapped lower on Sunday. Very often direction of the gap indicates direction of the move. CAD was also stronger against all other currencies. Gaps tend to be closed, and reversed, rather quickly, within 1-2 days, and are good places to enter/exit a trade. As this one closed at around the time of our daily updates, that's how we managed to get out of this trade with a small loss and also pass it on to our subscribers in a timely manners.
CAUTION! Gaps in Forex are different from other markets. Since every broker/quote provider has different source of price data, there are some platforms that always have gaps when markets open. Others hardly ever have gaps. Besides, gaps might not be closed for weeks or even months. If anything they shouldn't be used as a stand alone trading strategy, but as a supplement to more complete trading methods. |
| Very curious situation happened on Friday. We called for a trade in EUR-JPY. Within few hours, trade took place, our target was hit in a very quick order and then prices reversed just as fast. We certainly didn't envision this scenario, but are very glad that we were on the right side here. That's also when our AUD-JPY trade reached it's target. |
We are looking at a chart of CHF-JPY. We don't trade this pair very often, but it looks like there is something here. We placed an order to SELL at 98.30 with a target of 97.80. Lately this pair hasn't been moving a lot so we don't think it will be a fast trade.
Have a great trading week! |  |
Once again we must stress that the trades highlighted here are only a small sample of our trades. If you have any comments or would like to obtain more information please contact us at info@spectrumforex.com . |
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