As I grow in my maturity as a disciplined trader, I continue to come across more tools and material that I had never considered before. Just when I have felt that I've obtained enough knowledge to execute orders with at least some rationale, I learn something new and what becomes an important asset in my course of learning. Something so simple as my new discovery can go a long way in protecting your margin and making you more profitable.
Rate alerts are text messaging signals that you can have scheduled to be sent to your cell phone or email. If you are with a pretty good broker you should have this feature. Basically, you choose the price of a currency pair at which you should receive an alert. The way I use this tool is, instead of placing real time orders to open a new position, I set rate alerts at technically significant levels. In other words, once you've done your homework using technical analysis (pivot points, stochastics, MACD, RSI divergences, candlestick formations, fib. zones, all of that good stuff) and realized the levels which will prove to be good support or resistance, then you place your rate alerts. The good thing about this is you can do an analysis on as many currency pairs you wish and place alerts on all of them you'd like without risking exposure to your margin. Once you receive the alert, you can then pull up a chart on the currency pair and do a further analysis to confirm.
Always remember the trend is your friend- Long time frame for direction, small time frame for entry/exit.
Best Wishes.
1 comment:
While trading you must have comfort and security of funds. Do not trade through a broker in FX unless they have a bank realtionship for liquidity. But why take your chances? Trade through a bank.
Forex Bank at
http://www.VarengoldBankFX.com
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