Every Forex Trader should seriously consider forex signs, even if you are not trading, have limited expertise, or simply do not have much time to dedicate to your forex trading.
From the simple one email a day variety to the forex mentor who sits with you all day as you trade holding your hand, a portfolio of forex trade alarms can be basically free and can transform you into a profitable dealer instantly.
Questions like “have I entered this trade too late ?” and “am I trading in the appropriate path (long when I should be short)” will definitely have entered your mind.
How many times have you wished you had an expert trader with decades of expertise keeping you out of dangerous trades, directing your trades, and pointing you towards trades with a higher chance of success?
We were definitely in that position many times in the early days, but always pictured the price of having an expert on hand would far outweigh any extra profits we might make. It turns out we were quite incorrect.
There are numerous services available, known variously as forex signals, forex alerts, or forex hints.
Trading signals come in a variety of formats, suited to how much of your day you’ll be able to commit to trading. And yes beware, there are plenty of scams out there also, but we’ll show you the best way to avoid them, and we’ll direct you towards the better ones.
The main features of forex trading signs to be aware of are as follows;
Price: Free OR monthly subscription
Intricacy: Straightforward “one email a day” OR Full-Service
Control: You keep full control OR the signal supplier trades your a/c for you
Trading fashion: e.g. regular scalper OR low volume swing trader
A free forex signal may at first look like a fabulous idea, but as we will disclose here, you might very well would rather pay for a free subscription service (yes, we understand that doesn’t make sense – but read on)
A few of these are purely computer generated, some are computer generated and then audited by a human expert, and some are entirely studied and generated solely by a human expert trader who may add some market commentary to their forex forecast.
Some forex trading signals are high volume scalpers, calling many trades in a day aiming to profit a handful of pips on each. Others only call a couple of trades a day, planning to gain 20 – 80 pips on each single trade.
At the more full service end of the marketplace is the sort of forex signal service which provides you with an almost 24 hour a day live online broadcast calling forex trading suggestions as they occur, explaining the logic of the planned trade and backing it up with an email or even a video clip.
Some forex trading signals will trade their signs in your own account for you, leaving you to just sit back and see.
This is not dissimilar to what a robot does by using forex signal applications, but with the additional reassurance that an experienced human that is intelligent dealer as opposed to a dumb machine following an algorithm ‘s doing it’s.
Think of full service forex trading signals like a forex TV station, which you’ve running in the background on your pc or web connected laptop throughout your day.
You may be surprised, as we were, to detect that the costs charged by full-service suppliers are usually very similar to those charged by the one email a day providers.
This kind of service generally additionally comprises an interactive facility, enabling you to send a message to your forex mentor if you have a question.
Many forex signal services have quite true memberships, and some even restrict how many members they will accept.
Free forex signals (almost)
On the basis that time is money, in our opinion the amount of time we can now give to other activities by not slaving over our graphs for hours hunting for an ideal trade set up, as well as the improvement in our trading results, has more than paid for the very modest price of the forex signal subscriptions.
Subscription based services can efficiently be free when you take into account the advancement in your trading gains, and the freeing of your time for other lucrative activities really if you use this logic.
If you think about it, a subscription based forex signal service has a built-in incentive to call profitable forex trading suggestions, as its subscriber base would soon evaporate if it neglected to supply profitable currency trading suggestions. “Free” non subscription signals don’t have this incentive.
Handle your danger
The finest most experienced provider of forex signs will consistently have losing trades. Yet taken with all of their winning money trade signals the overall result still ought to be lucrative, but not all systems work all of the time. Some forex alarms may have a completely losing week or month.
Nonetheless, we have found through our own experience that the best means of making consistent profits with forex signs would be to subscribe to a number of different money trading signs and trade all of their signs. If one of them is having a particularly bad week, the others should compensate and still net you a week that is lucrative, or break even.
Always do your due diligence before trading a supplier’s forex alarms. Some will even show you details of the real trades they took. Expect to see losses in addition to winners – that’s just the nature of trading. Really, if the results show only victor, or the supplier is unwilling to provide contact details of some of their clients willing to give a reference be on your guard, or to reveal you any results.
Most will offer some form of free trial or discounted special offer to you. Make sure that you clearly understand the terms of this offer and know the deadline by which you have to give notice to terminate if you’re not happy with the service supplied.
If you compare the last 6 month’s results of all the forex sign service providers you intend to use, you should find that taken as a whole they delivered a profit.
Past performance is no guarantee of future results, but we’ve found that if you’ve a good mix of trading styles in your trading signs portfolio you are in with a fighting chance of gains that are consistent whatever the market conditions.
Again, think about the cashflow logic of what you will be doing here – the subscription prices of each forex signals service are very small, and by combining them you are raising your odds of consistent profits. They all can not get it wrong all of the time, and remember they’re all incentivised by their membership to get it as often as possible.
In spite of experienced traders calling your trades, it’s wise risk management to never ever risk more than 3% of your initial capital on any one trade, rather only 1%. Thus, if for example your initial capital, (or to put it another way, the maximum you are able to afford to lose) is let us say 5,000, the spot size you take on each commerce should be such that if the commerce strike your stop loss, your maximum loss would be no more than 1% x 5,000 = 50.
Using forex signals as trade ideas
You can benefit from their commerce idea if you prefer not to follow forex hints to the letter.
For instance, if you receive a forex tip trading the GBP/USD long with a 40 pip stop loss, but on analysing the graphs (following your attendance on a forex training course) you feel more comfortable putting the stop loss let us say 63 pips below entry, giving the stop protection below a visible area of recent and prior support, which happens also to be below the weekly pivot point, and in doing so are happy to have a longer range target – then go right ahead and do so.
We were surprised to discover that when we did just this with one of our forex signals’ points our trades really performed better than theirs did. Two heads better than one possibly.
The point is that without the forex market predict drawing our attention to that specific chart at that particular time we would never have seen that trade notion.
This also makes the point that while it may at first seem temping to let if you’ve the time, your account is traded by a signal supplier for you you may really would rather control it yourself.
If you have been through a good forex training class and understand the notions of support, resistance, pivot points, trends etc you must always use this knowledge to perform your own due diligence on forex alerts. You may well discover as we did that you can enrich the overall functionality of your portfolio of forex trade recommendations.
Free forex signs
This section would not be complete without reference of forex signals suppliers who don’t bill any subscription fee.
As we mentioned above subscription charging services should be effectively free by virtue of telephoning enough lucrative trades to more than cover the subscription price to you.
In addition we prefer to use subscription established forex signs as they have an incentive to call profitable trades, in that their subscribers will not remain with them for very long if they don’t.