Forex Trading Tools - Developing Your Skills For Consistent Profits

By Ryan Lee Daniels

There are several Forex Trading Tools available to a trader. Yet with the multitude of such tools, the number of traders that make it to consistent profits are still so few. So the question that begs to be asked is:

If it's not the forex trading tools that make a successful trader, then what does?

Some of the tools required to trade the forex currencies are obvious and basic. At the same time, there are quite a few others that aren't. Yet it is these less obvious tools, while not having a direct impact on your trading results, influence your forex trading success in very subtle and important ways.

One of the reasons why forex traders find it so difficult to find success is not having the ability to see how everything works together in the forex markets. This ability to see the bigger picture is crucial to find success as a trader, because it influences the way you would use your trading tools to pull profits out of the markets.

The difference between novice traders and season traders is this:

Most novice traders only think about the minimum things required to start trading, while the experienced, seasoned traders often strive to utilize the maximum of the tools available to them.

In the game of forex trading, retail traders are usually the least informed and hold the weakest power to determine how the forex currencies. On the other hand, while the banks and large financial institutions have access to sophisticated forex trading tools, it doesn't mean as a retail trader, you require all these tools for forex trading success. But you DO need to have all the trading tools required for forex trading success.

So what do you need to start your forex trading career?

The Basic Forex Trading Tools to Start Trading

These are the basic forex trading tools that you obviously need in order to trade the forex currencies, but these aren't the only tools required for forex trading success:

1. Your Forex Trading Account

2. Your Forex Trading Platform

3. Your Forex Trading System

4. Your Forex Trading Risk Capital

Click here to get the best Forex links

Why You Need A Forex Trading System To Succeed - A Story Of Two Forex Traders Just Starting Out

By Jackson Golde

With whatever field or investment you'd like to take on, there are always tools and resources available to assist you. And this is especially true when it comes to Forex. The currency market can be quite overwhelming, and becoming a successful Forex trader does not come from pure luck. There are simply too many factors that can affect the direction that currency prices will move toward.

Here are two important realities to consider:

1. Most newbies try to take on Forex using no assistance or tools. (Most newbies lose all of their money).
2. Most successful traders use a Forex trading system to help them (Successful traders make VERY good money in Forex).

But even with these realities commonly known, newbies still try to attack Forex blind, basing their buying and selling decisions on limited knowledge and experience. It is not until they have lost all of their trading funds that they consider that it probably would have been smarter to invest in a Forex trading system and software from the beginning. Don't make the same mistake. If you want to be successful with currency trading (ie. making consistent profitable trades) then it is highly recommended that you investigate the many Forex trading systems and software on the market.

Let me illustrate further with a story of about two Forex traders:

Tom and Jim have been reading about Forex a lot recently. Both have been spending hours online trying to understand what currency trading is and how (and if) they can make some quick profits. All of the marketing ads that they read say that you can increase your money very, very quickly. Sure, there's some risk involved, but the potential rewards are just too good to pass up. So they both decide to try out Forex and see if they can make a go of it.

Both guys are highly motivated and want to give Forex their best chance. So each of them is going to invest $1000 of their savings into currency trading. If they lose the $1000, then they will quit Forex and re-evaluate whether or not to try again in the future. By investing a thousand bucks, both have shown that they are fully committed to making Forex work for them.

Starting Out:

Tom takes his entire $1000 and transfers it into a retail online Forex broker. Tom will be making all of his trading decisions on his own. He will be doing his own research and will lurking on Forex forums and blogs to see if he can get some much needed tips.

Jim goes a different route. Although he is just as motivated as Tom, he is also aware of the complexity of the Forex market and realizes that he just doesn't have much experience at this point. So he takes $900 and transfers it to the same retail Forex broker as Tom. He saves the remaining $100 in order to get access to tools and resources (ie. Forex trading systems and software)

Forex Signals - How to Instantly Trade Like You Have Decades of Forex Trading Experience

By Thomas Webster
Seriously consider forex signals if you are not yet trading profitably, have limited experience, or just don't have much time to devote to your forex trading.

From the simple one email a day variety to the forex mentor who sits with you all day holding your hand as you trade, a portfolio of forex trade alerts can be virtually free and can transform you into a profitable trader instantly.

If like us you've ever analysed a chart and placed your own trades, you will almost certainly have also sat in front of your screen wondering if you were doing the right thing.

Questions like "have I entered this trade too late ?" and "am I trading in the right direction (long when I should be short)" will certainly have entered your mind.

How many times have you wished you had an expert trader with decades of experience guiding your trades, keeping you out of dangerous trades, and pointing you towards trades with a higher probability of success ?

We were certainly in that position many times in the early days, but always imagined the cost of having an expert on hand would far outweigh any extra profits we might make. It turns out we were quite wrong.

There are numerous services available, known variously as forex signals, forex alerts, or forex tips.

Trading signals come in a variety of formats, suited to how much of your day you can devote to trading. And yes beware, there are loads of scams out there too, but we'll show you how to avoid them, and we'll direct you towards the better ones.

Forex Trading Signals - many varieties

The main characteristics of forex trading signals to be aware of are as follows;

Cost: Free OR monthly subscription
Complexity: Simple "one email a day" OR Full-Service
Control: You keep full control OR the signal provider trades your a/c for you
Trading style: e.g. frequent scalper OR low volume swing trader
A free forex signal may at first seem like a fabulous idea, but as we will reveal here, you may very well prefer to pay for a free subscription service (yes, we know that doesn't make sense - but read on)

Most forex trade signals charge a very modest subscription fee, usually in the region of USD $80 - $400 per month (although happily most are at the lower end of this range), while there are also websites which provide forex signals for no charge.

In their simplest form a forex trading signal will send you a forex alert email once a day listing trade set ups for the next 24 hours.

Some of these are purely computer generated, some are computer generated and then audited by a human expert, and some are completely researched and generated exclusively by a human expert trader who may add some market commentary to their forex forecast.

Some forex trading signals are high volume scalpers, calling many trades in a day aiming to profit a handful of pips on each. Others only call a few trades a day, aiming to profit 20 - 80 pips on each single trade.