If you don’t know a darn thing about forex trading – especially if you are an idiot freelance writer looking for information on forex trading and you’re past deadline – just give up reading this article now. Go to a beginner’s forex trading web site and take a crash course in the basics before trying to comprehend what a forex entry signal is.
Specifics Before You Can Play
You can’t just jump into any aspect of forex trading, especially if you haven’t a clue as to what a forex entry signal is, let alone learning the fine art of when to touch a forex entry signal to make a bid on a trade. You might as well stick a neon sign on your forehead saying “SUCKER.” You need to download forex simulation software and use it faithfully for AT LEAST two months before you put an actual penny (or whatever currency you’re using) into the real forex game.
You also need at least one thousand dollars to devote to forex investing, which pretty much eliminates any freelance writer out there thinking of going into this. There are such things as “micro accounts” of a few hundred dollars, but they tend to label you as a beginner right away.
You also need to know what a “pip” is (and a back up singer to Gladys Knight does NOT count as the right answer). A pip is the smallest known unit of any currency. Since you are dealing with a variety of world currencies, using the world pip for all of them saves a lot of confusion (theoretically.)
When you trade, you tend to do it in “lots”. (And there is a logical explanation for that name.) The average lot is about $100,000. There are also micro-lots for $10,000. There are ways to get around the slight inconvenience of not having $10,000 to spare, but that’s beyond the scope of this article. You never make a bid to buy without also selling, so the actual money being spread about it not a lot.
So, What Is It?
Now I told you all of the above in order to try and somehow explain what a forex entry signal is. It’s just being beamed into my head from Planet Forex now. A forex entry signal is included in your forex software package. It’s basically a “GO” button. It lets whoever you’re trading with that you are ready to commit your money to a trade.