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STEP BY STEP GUIDE ON HOW TO TRADE WITH A SIGNAL.

For new traders, FOREX SIGNALS are beneficial, as traders can make money while still learning
about the markets and how to trade profitably.

Forex signals also save trading time. Many retail traders have other obligations that significantly
limit their trading time. This means that they are exposed to limited trading opportunities. Forex
signals can help traders to better utilise their trading time. A typical forex signal will provide
comprehensive trading suggestions (entry, stop, and take profit price levels), and will require the
trader to only perform the execution of the trade. In this way, traders are able to manage their
trading times so as to take advantage of the best opportunities in the market.

By Definition A forex signal is a suggestion given by a Professional Market Analyst for entering a
trade On When to BUY AND SELL A currency pair or a financial instrument (e.g Synthetic Indices)
at a specific time and price. It is important to note that, in a fast and dynamic market such as
Forex And Synthetic Indices, trading signal is only as useful as it is timely. This is because a
signal can become untenable if a trader receives it too late.

If you’re provided with a signal it means, that specified Pair or asset has already been analyzed
by a professional and only requires a small effort to Execute the trade. Simply open your MT4 Or
MT5 GO TO “Quotes” look for the Pair or the financial market you’re asked to place BUY or SELL
on then go ahead to execute the trade with your desired lot-size (According to your risk
management) After executing the trade GO TO “Trade” On your MetaTrader (4 or 5) there you
will see the trades you have executed. To add your SL and TP that comes with the signal tap on
any of the running trades an Option That says “MODIFY POSITION” will come up under the
trade, tap on it and you will see your SL and TP Box, copy your SL and TP from the Signal
channel to modify your trades immediately you receive the signal (Immediately because it is
Timely) so all of this requires quick action.

A Signal will always Come in this format

BUY GBPUSD @ 1.2050

SL: 1.2000- $4
TP1: 1.3000 + $4
TP2: 1.4000 + $8
TP3: 1.6000 + $20

And it is made up of THREE comprehensive trading suggestions listed Below:

ENTRY VALUE ORDER

1
SL (STOP LOSS) ORDER
TP (TAKE PROFIT) ORDER

. ENTRY VALUE/ORDER: The first Collection of number tagged with the signal is The ENTRY
VALUE and you can use your Crosshair Or a Horizontal trend line tool on your chart to
trace out this number in order to identify where you’re asked to buy or sell the signal from.
In the Example Above, the Entry Value is 1.2050

IMPORTANCE OF ENTRY VALUE/ORDER

It can help you trace the signal entry in case you came across the signal late and you want
to know if it is late or not to enter the signal.

When you’re asked to Breakeven or secure position when the Signal is in Good Profits the
ENTRY VALUE can serve as your new SL, that way your account will be protected no
matter what happens in the market. E.G

Above is A Secured Position.

Pick any value above your entry point (on a buy trade) or Below (for A Sell Trade) to secure
position
 . STOP LOSS ORDER: The Second Collection of numbers tagged with the SL (STOP LOSS)
is your SL Order. A Stop Loss Order is a type of trading order designed to limit a trader's
potential losses on a position. It automatically closes a position when the market price
reaches a specified level, allowing traders to manage their risk exposure and protect their
investments from significant losses.

Example of an SL ORDER that comes with a signal will always be in this format (SL: 1.2000- $4)
the dollar amount tagged with the signal means that specified pair SL has already been
calculated IN DOLLARS using the lowest lotsize (0.01 in the case for currency pairs) if the SL
order of that signal gets activated while on that trade you will lose exactly -$4. This helps you to
calculate your Risk on a single position in order to take only calculated risks that you can afford.

IMPORTANCE OF STOP LOSS ORDER

One key advantage of using a stop-loss order is you don't need to monitor your holdings
daily. This convenience is especially handy when you are on vacation or in a situation that
prevents you from watching your trades for an extended period.

. TAKE PROFIT ORDER the third collection of number tagged with the signal are the TPs. A
TP (Take Profit) is a type of Order that is placed to close a profitable position once the
market reaches a specific price.

AN Example of A TAKE PROFIT ORDER Tagged with a signal will always be in this format
(TP:1.3000+ $10) the dollar amount tagged with the TP sets (in the case of TP1 and TP2) means
that specified pair TAKE PROFIT has already been calculated IN DOLLARS using the lowest
lotsize (0.01 in the case for currency pairs) if the TP order of that signal gets activated while on
that trade you will gain exactly +$10.

In The case where there’s a TP1, TP2 and TP3 There are two ways to take advantage of different
TPs. The first one is If For example your risk management were to allow you to open a trade with
a lotsize of 0.03 you can open 0.01 in three different places (three positions) and set the three
different TPs for each of the trade Signal and the order will get activated on each as price
approaches this TP orders one after another.

The second one is TRAILING STOP. A trailing stop is a type of stop order set at a number of pips
from the current market price. They automatically follow your position as the market moves in
your favor, but close out if the market moves against you. For example as price approaches TP2
after getting to TP1 and you’re still on the trade, and you want to Trail Stop You can use your TP1
order as your new SL (on a buy trade signal) the trade will stop you out either at TP2 if it makes
more bullish move upwards or at TP1 if there were to be a reversal downwards either way
you will be stop out In profits. Example
SIGNAL TERMINOLOGIES AND MEANING.

SL = STOP LOSS

TP = TAKE PROFITS

SNIPED = Executed with zero loss incurred

SECURE POSITION = TRAIL SL

SECURE PROFITS = TRAIL TPs/Move SL To Entry

BE = Break Even

Let’s look at our next Topic Today: UNDERSTANDING LOT SIZE.

LOT SIZE is simply defined as the amount/quantity of a Currency Pair that you bought or Sold.

In Forex, Currencies are not Bought and Sold in singles, but in Packs called Lotsizes.

THERE ARE MAJORLY 3 TYPES OF LOTSIZES:

 . STANDARD LOT
. MINI LOT
. MICRO LOT

A STANDARD LOT CONTAINS 100,000 UNITS AND IS WRITTEN AS 1.0 ON YOUR MT4.

A MINI LOT CONTAINS 10,000 UNITS AND IS WRITTEN AS 0.1 ON YOUR MT4.

A MICRO LOT CONTAINS 1,000 UNITS AND IS WRITTEN AS 0.01 ON YOUR MT4.

As always, i am going to explain lot size with everyday practical example.

Imagine We have 3 Traders John, Bassey and Charles that deals on Rice in bags.

For them to make Profit , they can't just buy a single bag of rice from the Wholesaler. They need
to Buy these Rice in Bags for the profit made to be appreciable. Those Bags of Rice are What we
Call LOTSIZES in Forex.

Now, Assuming John buys 100,000 Bags of Rice, And Bassey buys 10,000 Bags of Rice, While
Charles buys just 1,000 Bags or Rice, You would agree with me that John would make more
money than Bassey, who will in turn make more money than Charles.

What determines how many Bags of Rice they bought is the Capital they Invested in the
Business. That is a Typical illustration of Lotsizes.

In the analogy above, John bought a Standard Lotsize, Bassey bought a Mini Lotsize, While
Charles bought a Micro Lotsize.

Let's consider the Pip Equivalent of each lotsize in dollars.

STANDARD LOT SIZE

1 PIP = $10

MINI LOT-SIZE
1 PIP = $1

MICRO LOT-SIZE
1 PIP = $0.1 (10 cent)

For Standard lotsize 1 PIP move

1:00 = $10

For mini lotsize 1 PIP move

0.10 = $1

And for Micro lotsize 1 PIP move

0.01= $0.10

10 pips with 0.01 lotsize = $1

100 pips with 0.10 lotsize = $100

So 10 Pips using 0.01 lotsize as your SL will be $1

CURRENCY PAIRS RISK MANAGEMENT

CAPITAL. MAX LOT (One Position)

$50. 0.01
$100. 0.02
$200. 0.04
$300. 0.05
$500. 0.10
$1000. 0.20
$2500. 0.30

SYNTHETIC INDICES LOTSIZE

Unlike Currency Pairs That has A Fixed Minimum Lotsize Of 0.01, Synthetic Indices Minimum
Lotsize Varies from One Instrument To another and it is very important that you understand the
differences first before going live.

Open a Demo account, practice all the lotsizes and understand how volatile these synthetic
indices are before going on a live trade.

SYNTHETIC INDICES RISK MANAGEMENT AND MINIMUM LOTSIZES