You should consider forex signals if you're not yet trading profitably, have limited experience, or simply do not have much time to dedicate to your forex trading.
From the simple one email each day variety towards the forex mentor who sits with you all day long holding you as you trade, a portfolio of forex trade alerts could be virtually free and may transform you right into a profitable trader instantly.
If like us you've ever analysed a chart and placed your personal trades, you will almost certainly also have sat before your screen wondering should you be doing what's right.
Questions like "have I entered this trade past too far ?" and "am I trading in the right direction (long after i ought to be short)" will definitely have entered your mind.
How many times have you wished you'd an expert trader with decades of experience guiding your trades, keeping you out of dangerous trades, and pointing you towards trades with a higher possibility of success ?
I was certainly in that position many times in the early days, but always imagined the price of through an expert on hand would far outweigh any extra profits we may make. It turns out we were quite wrong.
There are many services available, known variously as forex signals, forex alerts, or forex tips.
Trading signals come in a number of formats, suited to how much of your day you can dedicate to trading. Company beware, there are plenty of scams available too, but we'll demonstrate how to prevent them, and we'll direct you towards the better ones.
Forex Trading Signals - many varieties
The main characteristics of forex trading signals to understand are listed below;
* Cost: Free OR monthly subscription * Complexity: Simple "one email a day" OR Full-Service * Control: You retain full control OR the signal provider trades your a/c for you * Trading style: e.g. frequent scalper OR low volume swing trader
A free forex signal may at first seem like a fabulous idea, but as we will reveal here, you might very well would rather purchase a free subscription service (yes, we know that does not make sense - but continue reading)
Most forex trade signals charge a really modest subscription fee, usually around USD $80 - $400 per month (although happily the majority are at the lower end of this range), while there are also websites which offer forex signals for no charge.
In their simplest form a forex currency trading signal will send a forex alert email once a day listing trade set ups for the next 24 hours.
Some of these are purely computer generated, some are computer generated after which audited by a human expert, and some are completely researched and generated exclusively with a human expert trader who will add some market commentary to their forex forecast.
Some forex trading signals are high volume scalpers, calling many trades per day planning to profit a number of pips on each. Others only call a few trades a day, aiming to profit 20 - 80 pips on each single trade.
At the more full-service end of the market is the type of forex signal service which provides you by having an almost 24 hour a day live online broadcast calling forex trading tips as they occur, explaining the logic of the proposed trade and backing it up by having an email or even an online video.
Some forex currency trading signals will even trade their signals in your own take into account you, leaving you to just sit back watching.This is similar to what a robot does by using forex signal software, however with the additional reassurance it's being carried out by a skilled intelligent human trader rather than a dumb machine following a formula.
Think of full-service forex currency trading signals like a forex TV station, which you have running in the background on your pc or internet connected laptop throughout your day. The broadcast remains quiet if you find absolutely nothing to do, freeing your time and effort for that other priorities inside your day, then calls for your attention when there is a trade to place or manage.
You might be surprised, once we were, to find out that the prices charged by full-service providers are usually much like those charged through the one email each day providers.
This kind of service usually also includes an interactive facility, enabling you to send a message for your forex mentor for those who have an issue.
Many forex signal services have very loyal memberships, plus some even limit the amount of members they will accept.
Free forex signals (virtually)
On the basis that time is money, within our opinion the amount of time we can now devote to alternative activities by not slaving over our charts all night searching for an ideal trade set up, not to mention the advance within our trading results, has more than taken care of the modest cost of the forex signal subscriptions.
Indeed should you apply this logic, subscription based services can effectively be free whenever you look at the improvement inside your trading profits, and the freeing of your time for other profitable activities.
If you feel about it, a subscription based forex signal service includes a built-in incentive to call profitable forex trading tips, since it's subscriber base would soon evaporate if it failed to provide profitable forex trading tips. "Free" non subscription signals don't have this incentive.
Manage your risk
In an aspect of forex currency trading your main goal is to manage your risk. Choosing, and trading a forex trading alert should be no different.
Even the best most experienced provider of forex signals will regularly have losing trades. However taken with all of their winning currency trade signals the overall result should still be profitable, although not all systems work all of the time. Some forex alerts may even have a completely losing week or month.
However, we have found through our own experience the best way of creating consistent profits with forex signals is to subscribe to several different currency trading signals and trade all their signals. If a person of these has an especially bad week, others should compensate but still net a profitable week, or break even at worst.
Always do your due diligence before trading a provider's forex alerts. Good forex signal services will publish their last 6 - 12 months results on their website. Many will even demonstrate information on the particular trades they took. Expect to see losses in addition to winners - that's just the nature of trading. Indeed, if the results show only winners, or even the provider is unwilling to inform you any results, in order to provide contact information of some of their clients willing to provide a reference be alert.
Most will give you some sort of free trial offer or discounted special offer. Make sure that you clearly comprehend the relation to this offer and be aware of deadline through which you have to give notice to terminate if you're not pleased with the service provided.
Should you compare the final 6 month's results of all the forex signal service providers you want to use, you should find that taken as a whole they delivered a profit.
Past performance isn't any guarantee of future results, but we now have found that if you have a good mixture of trading styles inside your trading signals portfolio you are in with a fighting possibility of consistent profits whatever the market conditions.
Again, think about the cashflow logic of the items you will be doing here - the subscription costs of every forex signals service are already very modest, and by combining them you are increasing your possibility of consistent profits. They cannot all fail all the time, and don't forget they all are incentivised by their membership to get it right as often as possible.
Even with experienced traders calling your trades, it's prudent risk management never to ever take more chances than 3% of the initial capital on any one trade, preferably only 1%. So, if for example your initial capital, (or to put it another way, the maximum you can afford to lose) is let's imagine 5,000, the position size you are taking on each trade ought to be such that if the trade hit your stop-loss, your maximum loss would be a maximum of 1% x 5,000 = 50.
Using forex signals as trade ideas
Even if you prefer to not follow forex ideas to the letter, you can still make money from their trade idea.
For example, if you receive a forex tip trading the GBP/USD long with a 40 pip stop-loss, but on analysing the charts (following your attendance on a forex training program) you feel much more comfortable placing the stop loss let's say 63 pips below entry, giving the stop protection below a visible area of recent and prior support, which happens and to be below the weekly pivot point, and in doing so are pleased to possess a longer range target - then go right ahead and do so.
I was surprised to locate that after we did exactly this with one of our forex signals' tips our trades actually performed better than theirs did. Two heads better than one maybe.
The point is though, that without the forex market forecast drawing our attention to that particular chart at this particular time we would never have seen that trade idea.
This also makes the point that while it may in the beginning seem temping to let an indication provider trade your bank account for you, if you have the time you might actually prefer to control it yourself.
If you have been via a good forex training course and understand the concepts of support, resistance, pivot points, trends etc you should always use this knowledge to do your personal research on forex alerts. You might well find once we did that you can boost the overall performance of the portfolio of forex trade recommendations.
Free forex signals
This section would not be complete without mention of forex signals providers who don't charge any subscription fee.
Once we mentioned previously even subscription charging services ought to be effectively liberated to you due to calling enough profitable trades to more than cover the subscription cost.
In addition we prefer to use subscription based forex signals because they come with an incentive to consistently call profitable trades, for the reason that their subscribers won't stay with them for very long when they don't.
Free signals in comparison don't have any such incentive, so quote and trade them at your own risk.
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