F.A.Q.  
       
    What is FOREX?  
    The Foreign exchange market is known as the Forex or FX market. It is an international foreign exchange market, where money is sold and bought freely. Currencies are always traded in pairs. It is the biggest liquid financial market. Money masses in the market constitute from 1 to 2 trillion US dollars a day. Transactions are conducted all over the world via telecommunications 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday.  
       
    How high are the risks in FOREX trading?  
    The risks can be high but also controllable. Forex traders around the world are competing against other forex traders, banks, and institutional traders who are seeking the same potential rewards from their own trading activities. Money management, discipline, talent, and a lack of emotion are traits you will want to develop in FOREX trading. But remember, FOREX Trading is speculative and any capital used should be risk capital. In fact, we recommend that you trade on a demo account until you have shown profit for at least three consecutive months before trading real money.  
       
    What is a Pip?  
    A "pip" is one tick or movement in the exchange rate. For example, the EURUSD currency pair is trading at 1.4550 which means that for every Euro it takes $1.4550 US dollars. One pip up would move the price to 1.4551. If we were long on the Euro we would have made a one pip profit which means on a $10,000 investment trading one lot/contract (100k of currency) we would have made $10. Please note that we trade on fractions of cents and use leverage (10:1) to extrapulate the movement.  
       
    How much a pip worth?  
    If you trade the full contract (100k of currency) the EUR/USD and GBP/USD are worth approximate $10. In other words if you have a trade with 50 pips in profit, it means the gain is $500. ($10 per pip x50 pips). If you trade a mini account is 1/10th of the size, 50 pips will worth $50  
       
    What does it mean have a 'long' or 'short' position?  
    A long position is one in which you buy a currency at one price, with the expectation of selling it later on at a higher price. Obviously, you anticipate that the market will rise. A short position is one in which you sell a currency with the expectation of buying it back at a lower price. Here, you expect the market to fall. Every FX position you take automatically entails going long in one currency, and short the other. If you buy one, by default you are shorting the other.  
       
    What amount of money do I need in my trading account?  
       
    This is very important for any trader regardless of you deciding to go with our service or not. Please read this carefully. It took us a long time to perfect the risk management and this is one of the backbones of our system (and i guess of all profitable systems) that many signal providers don’t go into in detail so as not to frighten potential customers.  
    Leveraged forex is a highly rewarding method of trading at a cost of high risk. You can lose a lot of money and should never trade with money that you can not afford to lose.  
    Rule of thumb in the market is do not risk more than 1% of your money in any one trade, we recomment strongly to reduce this limit further to 1% till you have a profit built up and feel comfortable enough to trade on a higher risk. The reason is you will get in to 3-5 trades at the same time and most of them will be linked to USD, therefore you can not treat them as totally separate trades.  
   

This will give you enough money in your account to get into 10 more positions after 20 consecutive losses. This is an extreme case but it can happen and when it happens you don’t want to waste years of cumulative earnings.

If you open a mini account with $500, after 6 consecutive losses of 70 pips, you will be bust. How likely is that to happen? VERY likely, there is no system that can guarantee that it will not happen, in fact nearly all good systems in the market goes through consequent losses of 10-15 times at least once a year. This is not extreme, just not advertised, no one wants to frighten a potential customer.

Of course you can start with a 500$ account and be lucky to grow it quickly to a substantial amount of money but be aware that until you build up an acceptable amount in your account, you are taking a very high risk of going bust.

 
   

 

 
    What about drawdowns?  
   

Drawdowns may occur and it may be painful for some . But we try to reduce and minimise the duration of DD periods , its all about using right moneymanagment . FYI our worst month/month DD was -680 pips

If you are new to the service we advise you to paper/demo trade our signals until you feel comfortable enough to trade with your own capital.

 
       
    What do we trade & what is the maximum number of opened positions at a time?  
   

We trade mainly the 6 major currency pairs EUR/USD, USD/JPY, USD/CHF, GBP/USD, AUD/USD, USD/CAD but occasionally, we trade crosses of currencies like EUR/CHF, AUD/JPY, EUR/GBP, EUR/JPY, GBP/JPY

Usually 2 -3 positions are opened at the same time but because of our risk management we have a limit on how many trades we can place at a particular market.

 
       
    Results and targets  
   

We aim for 60-80 pips per week. This is equivalent to 240-320 pips per month. These profits may come all at once in one trade, or may come in smaller packages, depending on the market conditions. We will often enter the market with one currency pair only, phasing others in after the market has moved one way or the other.

When we have met or exceeded our weekly target, signals are sometimes stopped until the following week, even if this should occur early in the week. This enables us traders to rest and enjoy a break and play Golf, go Skiing or spend some time with the family and also protects our profits and business capital, considering the cyclical nature of the trading model.

Actual results for this service can be viewed at Performance and please read our disclosures on risk at Disclaimer
 
       
    How do I manage risk?  
    The most common risk management tools in FX trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor's position. The liquidity of the Forex market ensures that limit order and stop loss orders can be easily executed.  
       
    Should I use a specific broker?  
   

We are not affiliated with any broker, nor receive commissions for referring people or executing trades. We suggest to open accounts at major brokers registered with the NFA. Beware of offshore brokers offering high leverage accounts with low minimums. A list of brokers can be viewed here.

We personaly use Oanda, CMC and Dukasopy as our brokers and get in/out of the market based on prices which might be slightly different than other brokers but this should be insignificant as long as you don’t miss a trade or get in to a trade that we did not by a pip or two. This happened on few rare occasions in the past.

 
       
    Our trading system  
    We use pretty much the same criteria and parameters to generate signals for our long term, medium and short term trades and there is no fundamental criteria involved in the process. There are some minor differences in some timeframes and also in different markets. You will have access to all needed informations.  
       
    Can I enter the orders at different time?  
    On trades with a longterm outlook you may enter the trade at different times and levels but adjust your position size according to your initial risk and money management. On short term setups we would recommend not to chase prices too far as the risk might outweigh the reward but many customers prefer to do their own timing and get better fills.  
       
    Why there is a difference sometimes in the prices you give and the market?  
    There are few reasons for prices discrepancies. One is because of the fast changing and volatile Forex market. Another is because everyone is using different platform, and we can not always match the exact price of the currency pairs at the time of sending signal. Therefore sometimes there are one or few pips, which could be in your advantage or disadvantage, which we know sometimes make the whole difference between profit and loss.  
       
    Does Financesignals.com offer any guarantees on signals or recommendations published?  
    Financesignals.com offers no guarantees on the growth, loss or trading of your account. The potential of losing all your investment and more is there. Please read the risk disclaimer for more details.  
       
    When & how do you deliver your emails?  
   

We send out our signals before the European or after the US trading session. We deliver by e-mail only. At this stage we don't offer instant messaging signals or text messaging but will certainly consider it in the future if required. Our posting are uploaded normaly only once a day therefore we have no real use for instant messaging so e-mail is quick enough.

But because you will be familiar with all our enrty rules, you are independend from us and are able to trade in your own time in your own chosen timeframe.

 
       
    How often do you trade?  
    It depends on the market condition and on the timeframe you desire. There are always entry signals, especially on the shorter times ( 5 min - 30 min) but for the longterm trades we might have to wait a few days to get a valid signal.  
       
    Do you use automatic trading?  
    No, at this stage we execute our trades only manual.  
       
    I still have more questions. How do I contact you?  
    Please feel free to contact me on admin@financesignals.com