Forex trading signals are generated the same way that stock trading signals are created. It's a matter of building a trading systems and testing it over a variety of markets to determine its worthiness.
The biggest difference between stock trading and Forex trading is fundamental data. The most successful Forex traders don't use only technical indicators to enter, place stops, and exit trade. They also know the fundamental data extremely well.
Successful currency traders understand monetary ebb and flow. They understand the relationship between GDP (gross domestic product), the flow of money, the effect of interest rates, and the pressures caused by inflation. In reality, the best currency traders are pretty good economists.
A commonality between successful stock and Forex traders is this - they both maintain a narrow focus. The best stock and Forex traders don't trade anything and everything. They learn a few stocks or currency pairs and become proficient at trading these entities. They train themselves to become experts at the trading signals of a currency pair or a particular stock.
The attraction to Forex is understandable - with greater leverage a Forex trader can control bigger positions with a smaller capital commitment. The cost of doing business is less as there is no middleman to charge broker or exchange fees.
The unspoken secret about Forex or stock trading is this --there is no "secret", nor Forex "robot", or new "discovery" that will creates a successful trader. There is no short cut to hard study and lots of practice.
Trading is hard work. It takes time to gain proficiency. Yet success is attainable - don't give up. Keep learning and practicing and success will be yours.
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