Forex Signal Service

Forex Signal Service – What Forex Trading Is About

Forex Advisory Service. Forex signal alerts for the self-directed trader who wants to trade alongside our professional forex trader. Receive regular consistant detailed forex trading advice.

Well, first and foremast , forex signal service, like other speculation forms , has a goal that is more important than anything else ; bring in money! If this premise is what we start with , that making money is our goal , then in a massive global market market, how do we do this ?

The first thing you need to decide is whether you’re a fundamental or technical trader, or perhapse both . Later we’ll have more articles on this topic , but we’ll assume for now that you keep track of current events and world affairs and the fundamental side of this game is the one you’re more attracted to. Then you must ask yourself , what are the single most important fundamental factors that drive currency movements ?

If the fundamentals is what you’re focusing on , there is one thing above all else that will drive your forex trading decisions ; interest rate differentials between countries . What exactly is an interest rate differential ? Good question ! Imagine that the Australian Dollar has a 4% short term interest rate. This means that if you live in Australia and you’re in debt this base rate helps to determine what you pay on your home mortgage, your credit cards, etc . This also means that if you are a creditor you can use this 4% short term interest rate as your base rate that decides how much your investments make; such as CDs from your local bank . Then suppose that the short term interest rate of the US Dollar, set by the Federal Reserve , at 1% . How are currency movements affected by all this ?

If the Australian Dollar short term rate is at 4% and the US Dollar short term rate is at 1% it’s all as simple as this : investors want their investments to have a higher yield and since there is more interest in Australia then they take funds and move them to Australia. This shift in the investments going to Australia from the US weakens the US Dollar because supply is larger than demand and the Australian Dollar becomes stronger because the demand suddenly becomes greater than supply . Economic fundamentals are working here ; value rises when there is higher demand .

When you think about your own forex signal service and the next position to put on , you should ask, ” what country has the most liklihood of having higher rates moving forward and what country probably will have the lower rates moving forward?” Then buy currency that is the favorite for higher interest rates and sell the currency that you favor for weaker interest rates and increase profits as investors go towards stronger currency and leave the weaker one . This is the essence of forex signal service.