What is Forex Factory
If you’re just starting out in your Forex trading career, or you have a few years under your belt, you might find that you need a place to go to get advice and talk with other trader.
Think of it as a hub for Forex traders.
A place to gather, discuss, and educate one another on the intricacies of Forex trading.
That’s exactly what Forex Factory offers – and then some.
You see, Forex Factory is more of a community than anything else.
This makes total sense in the era of ubiquitous social media that connects us all.
But Forex Factory is also mission driven in that it not only seeks to build a robust and strong community among traders but also it seeks to dispel misinformation about the market.
Misinformation or inaccurate data can lead traders to make rash decisions which will, ultimately cost them a ton of money one day.
Forex Factory helps traders avoid this through education, community, and a robust data stream that keeps you on top of the market.
Because it is an international forum, traders from all around the world gather there to exchange information and make sure that everyone is working from the same playbook as everyone else.
No one is born knowing how to trade foreign currency, and Forex Factory knows this with a dedicated mission to bring new traders into the market with some sense of what they’re doing.
But, if you’re beyond that, Forex Factory has even more advantages for you as a trader. This is because you will get to interact with traders who have a lot more experience than you do and have probably made a whole bunch more money.
If you have been invested in the world of financial trading for anytime since 2004, then you have likely already heard of the company Forex Factory. Forex Factory has been the leading forum available to Forex traders since 2004, and in recent years it has become the central hub for traders who are interested in discussing and exploring the latest trends, news and other pertinent events in the financial world.
But did you know that most people do not completely take advantage of the many benefits that Forex Factory has to offer? Most users head right to the popular Trading Systems thread to hunt out new trading systems and try them out until their latest venture fails then they head right back to that Trading Systems thread and try again. This is an unending cycle that doesn’t provide any significant financial benefits and is, as a whole, a waste of time. But there is something that traders can do on Forex Factory to improve their chances of success–as long as they know where to find it and how to use it.
The “something” in question is a series of trading tools that are available for free–yes, completely free–and can do wonders in improving your understanding of trading as well as your overall success with your trades.
If you want to start taking advantage of these great tools today, read on to find out what free tools are available and how to best use them.
Forex Factory Calendar
The first tool that you should look at is the Forex Factory calendar. This highly useful calendar contains a highlighted list of essential news that is on the horizon. This calendar is beneficial for all types of trades, including technical traders, short term traders and everyone in between. This calendar will let you keep track of news events and help you find better trade entry placements that won’t have you in the negative after a widened spread affects your trade results.
The best way to use this calendar is to first head to the calendar at the Forex Factory website. Then select the “Time” button at the top of the page and pick your time zone. This will ensure that the calendar is correct in terms of the time and date of each event. The next thing you’ll need to do is take advantage of the calendar news filter, which will help you filter out any news that isn’t relevant to you. Simply head to the calendar, select the “Filter” tab at the top right hand side, and you can use the filter to include/exclude factors such as: type of currency by country, algorithm based expected impact on trades, and finally, event type (growth, inflation, housing, etc.).
Forex Factory Settlement Indicator
The second tool you should be taking advantage of is the Forex Factory Sentiment Indicator. This is a visual chart that lets you find trading set-ups with a higher probability rating. The chart gives you a clear, visual representation of the percentage of short and longer traders at any given time; the chart itself is broken down by the currency (USD/CAD, AUD/USD, etc.) to make the information easy to digest.
The Sentiment indicator will help you make an informed decision about when to enter a specific trading market. The best way to use the indicator chart is to consider a contrarian approach–that is, going “long” when the percentage of short-term traders is highest and going “short” when the long-term trader percentage is the highest.
This approach will not work for every trade or event, but it’s something to keep in mind when you want to increase your chances of success. You can also use the Sentiment Indicator to get a better idea of the current market trends as they related to the back-and-forth swing of long-term and short-term trades. Keep an eye out on theses swinging percentages and you will be able to see certain types of trades before they actually happen.
Forex Factory Market Monitoring
Another great tool that you can take advantage of at Forex Factory is the ability to easily monitor your trades in real time, no matter where you happen to be–work, home or even during your commute. It can be frustrating when you need to monitor your trades but you either have to sneak off to the bathroom to check out live market apps or twitter updates, or you have to struggle with tons of mobile device tabs as you attempt to find information about your current trades and the state of the market. This is where the Forex Factory Market Monitoring section comes in; it is simple, has a clean layout, and is easy to digest at a simple glance.
To check out the free Forex Factory marketing monitoring section of the website, simply head to the “Market” section of the Forex site; this section tab is located at the top center of the page. You will immediately see the related Forex charts on your screen; these charts are updated in real time and will give you an immediate status update regarding your trades. This chart even tells you the current market session times, which is especially essential for any traders who need to know the times of international trading sessions.
Forex Factory Find a Broker
Forex Factory even offers its users the ability to find excellent Forex trading brokers. This particular tool is effectively a search engine that contains a data base of brokers; this data base can be filtered down using a variety of characteristics that will help you determine the type of broker you want to deal with.
To use this tool, simply select the “Brokers” tab which is located at the top right of the Forex home page. Once you select this, you will see a database of active brokers on your screen. This chart will let you compare their relevant stats at a glance; you can also filter out results based on factors such as language, minimum deposit, how many countries they are regulated in, their real time spread, and so on.
It should be noted that brokers do pay a fee to be featured on the Forex Factory site. However, this does not mean that the site is inherently biased or that you can’t trust the results. As a general rule, trust your instinct regarding the information presented in the broker charts and make sure you are taking a hard look at the statistical facts of their trades above everything else.
Forex Factory Trading Journal
Anyone who is genuinely serious about trading needs to have a proper trading journal. A trading journal lets you keep track of your trades, your success, and other relevant information that will help you increase your chances of success on the market.
If you’re still not convinced, take a look at these 3 essential reasons why you should be using a trading journal: accountability, learning opportunities, and important information storage. A trade journal will help improve your accountability due to the public nature of the trading journal, which will make you more likely to take responsibility for your decisions. A trade journal can also help you find like-minded traders who are interested in discussing, offering feedback and otherwise networking with you based on your journal. Finally, a trading journal will let you have a cloud-based journal that backs up your pertinent information regarding your trades.
Setting up a trade journal using Forex’s tool is easy. All you need to do is first select the “Forum” tab located at the top of the web page. Then, select the “Trading Journals” tab which is located towards the middle of the page. From there, select the “Start New Thread” option. This thread will be the first entry in your journal.
You can write whatever you’d like in your trading journal, but as a general rule, your first entries should involve making a commitment declaration for 6 months; explaining your trading plan; posting current charts of your trade entry and trade exist history; as well as offering your personal thoughts for the current trading week.
The key to benefiting from a trading journal is doing it on a consistent basis. Commit yourself to updating your trading journal on at least a weekly basis for at least 6 months; if you keep up the trade journal for those 6 months, you are much more likely to see benefits from having this information readily at hand. You are also more likely to continue journaling as you go about your trading business.
Forex Factory is owned by Fair Economy Inc. which prides itself on “democratizing” information in the forex market. What this means is that any person with access to the forum can get the same information as anyone else. There’s nothing proprietary here and, indeed, the idea is cooperation more than it is competition.
Even if you think you know all there is to know about foreign currency markets, Forex Factory will introduce you to new ideas and ways of doing business that you might not have considered. This will not only have marked benefits for your trading acumen but might even end up making you money.
Beyond that, you would be able to contribute to the community in terms of personal knowledge and experience. With everyone acting in a spirit of sharing and communal learning, you can’t help but pick up new knowledge no matter how experienced you think you are.
If you find yourself looking for a place to communicate with others or you just want a central hub for information about forex trading techniques and methods, Forex Factory should be at the top of your list for potential places on the Internet to call home.
You’ll not only brush up on your skills while gaining new ones but you also will make colleagues that could help you over the course of your trading career.
Forex Factory is so much more than a forum; the many free tools offered through Forex Factory can go a long way towards improving your trades, improving your chances for financial success, and helping you better understand the ins-and-outs of the trading world. It is a mistake to simply use one aspect of the Forex Factory site, when there are so many excellent tools just waiting to be utilized by the Forex Factory user base.
To recap, the tools that you should be using are the Forex Factory calendar; the Sentiment Indicator tool; the marketing monitor tool; the find-a-broker charts; and finally the ability to write and host a trading journal. All of these tools are completely free to use; they are also very user-friendly and typically allow you to more easily digest and understand relevant information with just a few glances at an optimized information chart.
If you commit yourself to using these excellent free tools that Forex Factory has been providing customers for years, you are more or less guaranteeing that you will see a marked improvement in your knowledge and skills within the trading industry. These tools can make a serious difference in the overall trajectory of your trades.
If you are ready to start taking advantage of the excellent tools listed here, create a Forex Factory account and start using them today. You—and your finances—won’t regret it!