Anyone can face the lack of idea or experience uncertainty. In this case, there is no expectancy for trader nor amateur. I’ve been frequently asked where my ideas come from? The answer – experience and market knowledge sound way too uncertain. After analyzing my workday routine I came up with 11 tips accompanied with useful links, where every trader can find some inspirations and fresh ideas.
1. Currency Exchange Forecasts from banks and brokerage companies
First place of my personal trading idea chart. In my opinion, big players’ and experts’ forecasts are the best foundations for developing a long-term trading idea. Have a look on the example (attention: this is not real forecast):
As you can see from this forecast – USD will be stronger then EUR and AUD. In percentage ratio AUD compared to USD goes down more rapid then EUR. Here comes some conclusions:
- According to forecast, AUD is the weakest currency
- GBP and USD look very confident in upcoming quarter
- FXstreet.com Experts Forecast Currencies Poll
- DailyFX.com Weekly Currency Trading Forecast
- The Financial Forecast Center
2. Forex analysis
The reliable analytical information enables you to be on top of the freshest market news and professional forecasts of further market movement. All most every trader public technical forecast and analytics for foreign exchange currencies. Below you can find some links of pretty good analytics.
- DUKASCOPY Technical Analysis
- Actionforex.com – Technical Outlook and Candlesticks Intraday Trade Ideas
- MIG Bank Technical Analysis
3. Forex News calendar
To use this source you should be capable of knowing the market. I’m not talking about the classic trading system with limit orders in this case. You should pay attention to importance of the news (impact), to previous value of macroeconomic rate as well as to forecast. Have a look on the example (attention: this is not real forecast):
USD Unemployment Claims
Here we can see that the forecast has much lower rate then the previous value. We know as well that the forecast was announced at least a week before the news, sometimes even earlier – you can see the economic calendars in advance. Summing up, usually a rating value already consists the forecast. So, you can make a stake on small adjustment to the forecast or wait for better news to come and price rate turn because of the forecast initially was too pessimistic compared to the actual one. Knowing technical analysis, including candlestick pattern understanding is a must while using these kind of trading ideas.
4. Trading signals
Perhaps, one of the best tools to earn profit. Actually, it is the easiest one, but also needs extra analysis instead of copy-paste. You better get some notion of what’s going on market, before starting following blindly the signals. There are cases, when the price don’t get to T/P, however the starting direction was right. You could register a plus deal or otherwise adjust S/L by knowing the inaccuracy on diffract terminals could get up to 10 pips. In case the signal contradicts your personal market view, better to ignore it.
5. Social networks and Forums
This idea works equally good both for new positions and exciting ones. Support your trades. A lot of traders use social networks, publish their open deals and signals on twitter, discuss ideas on forums, groups and uses other public sources. Share your opinion, read others, ask, get in touch not only with like-minded people – this will help you to form an objective opinion.
- MyFxBook a social forex community
- BabyPips.com Forex Forum
- OnlineTradersForum.com – Traders and Investors Sharing Ideas
- Trade 2 Win Forex Forum
6. Forex Blogs
The main reason why people should read blogs is that there are plenty of information, lessons, and fun facts to be learned there. In other words, you will be able to enrich your mind whenever you read blogs. Additionally, latest updates of certain topics are very quickly distributed in the blogosphere. So, if you want to be one of the first people to know about something, follow a highly-updated blog!
Here’s a list of my top forex blogs, I think they should be on every forex trader’s feed:
7. Sentiment Index
The Sentiment Index can be a valuable tool for intraday currency trading. The publication of the sentiment index contributes to the overall mission of Forex marketplace’s transparency and independence. The Index is based on transaction flow information and is designed to show long and short ratio in the most popular currencies and currency pairs consolidated by liquidity consumers and providers.
How to use?
The Sentiment Index has the ability to indicate the ebbs and flows of sentiment and keep your fingers on the pulse of the market. The Sentiment Index gauges effective speculative interest in currency pairs and currencies and therefore can be used as a contrarian indicator.
Example: the Sentiment index can become an additional confirmation filter and thus approve or disapprove of trading signals from any intraday strategies like MACD divergence or MA crossovers. If the strategy gives a BUY signal on EUR/USD and the sentiment indicators for EUR/USD and EUR are overbought, the trader should avoid entering into a position. If the strategy gives a SELL signal on GBP/USD and the sentiment indicator for GBP/USD and GBP are overbought or at least neutral, the probability of a successful trade is increased.
8. Forex Copy system
The Forex Copy system is designed to enable Forex traders to online copy orders of successful traders. Every user of the Forex Copy system may follow profitable trading strategies by selecting Traders in the public monitoring list and copying their successful trades. Any Forex Copy user may copy trades of other users and allow any user to copy his trades.
The Forex Copy system has an extended list of the payment options. A Forex Copy Trader receives a commission for allowing one or more Forex Copy Followers to copy his trades. There is also a commission per copied trade, a commission per day and a trade profit share. If a Follower chooses the latter, he pays only for profitable copied trades.
9. investment adviser
If you already are pro or the owner of big capital, you can use some professional consultant help. You can order a particular analytical report, trading targets and recommendations on closing/ending market and much more on any time for your personal use only. This service is quite expensive, so main clients are banks, investing fonds, big brokers, often private traders. Usually, these structures know more about the market than others by having powerful analytical department and sometimes even access to classified information.
10. Money management
Profitable trading is not all about one or two fluke profit trades. Profitability in Forex is the ability to make Forex trading profits over time, with consistency and regularity. Forex money management is what makes the difference between a winning trader, and one who wakes up in the morning afraid to check his trading platform because he doesn’t know what to expect.
PAMM system is One of the most popular money management opportunities in Forex. It gives you the chance to invest in the high-liquidity Forex market without any trading experience. There are some examples of Forex brokerage companies that offer PAMM.
Talking of information sources for trading ideas, you can not miss the news and expert, top managers, bankers, and other important persons interviews on leading news channels. Add television programs on market and new trading ideas to your list. That will broaden your analytical horizon and brings answers to many questions about investment situation. My recommendations:
Last, but not least, I’d like to add, no matter which trading idea you chose, final decision is up to you. If you’re not sure, stand aside, do not force the decision. Remember about the trading psychology (from my previous post) and master your emotions.
I recommend to visit Intomillion Suggestions – where Intomillion offers you a great compilation list of Trading, Investments and Finance information sources that I use in the project for trading, researches and analysis. This list is full of useful information and helpful hints. Hoping, you also find these web sites appropriate and use for personal business.