Forex signals can be defined as in-detail suggestions and ideas relating to trade. The best forex signals come from the most experienced traders. Many online brands bring free and paid forex trading signals.
As the forex signals, in short, comprise text-based information; thus, people can transmit them through different channels. The forex signal providers give customers access to their “products” via live messages, video calls on Skype, email, etc. There are many forex signal Telegram channels online.
Signal-based trading has numerous features that make the environment more accessible and convenient for traders. Moreover, the signal providers monitor their activities using interactive charts, live streaming, etc.
Many people dream of achieving profitable trading, and to most traders, forex signals are the right path to make it.
Forex Signals – Introduction
The secret of profitable traders’ success is forex signal systems. Traders with no, little or advanced experience in trading are adopting the forex signal trading solutions.
Not just this, there is a whole industry entirely based on forex signal trading and recommendations. However, remember that when considering forex signals, quality should be preferred over quantity.
Forex signals of quality are very beneficial for profitable trading experiences. They tell a trader when to jump into trades, in which trading direction, and how to prevent losses and maximize profits.
So, if you want to ensure the quality of the trading signals, then it’s better to create a Demo account option. It helps you access a real account with virtual money that will keep you away from all the risks if the turns out subpar.
Time Interval
When considering the nature of trading signals, they don’t work for techniques like scalping. The scalping chance passes by until you get the notification of receiving the call. Surprisingly, some scalpers are still using signal service.
Hence, watching out for the time interval is a must.
The personal methods and preferences of the signal provider are evident through their FX signal system. Hence, every FX signal system is unique.
However, all these systems can fit under two categories:
- Technical analysis-based (TA)
- Fundamental analysis-focused (FA)
Forex signal systems based on technical analysis derive the trade opportunities by reviewing past price movements and other mathematical tricks.
In FA-based FX signal systems, the providers analyze the current happenings and then get trade ideas depending upon the event’s effect on the asset prices.
Looking For the Best Forex Signals
The profitability of your trading depends upon the quality of your forex trading signals. However, applying these signals does not require much skill but only the selection of the forex signal service.
Before making any move in choosing the forex signal service, look at this short checklist:
- Time Zone: The initial step before beginning to trade is taking note of the signal provider’s time zone. Your main motive is to receive signals when you are awake because, other than that, they bring no benefit as such. You can even register for a free account if there is no other way to get time zone information.
- Free Trial Period: You can register for a free trial period. In this, you will get a clear idea of the quality of the service in a demo version. Also, you will not need to pay the tuition for the losses on the wrong signals.
- Comparison: Look for FX signal services and choose the best, depending on your trading style. Do not rush!
- Track Records: The track records give all the setup information performance-wise. Hence, take a look at the track records of the forex signal providers. Ensure that the track records have verification from third parties like MyFxBook.com.
- Complete Analysis: Select the FX signal provider that provides a total package. It should give you comprehensive knowledge of why your signals will work. Therefore, the provider must provide access to interactive charts and other market analysis tools to know this. Note that choosing providers that only give you the entry price and SL/TP is never profitable.
- Based On Your Style: Considering the two basic categories of Forex signals, various other trading styles include short- and long-term signals, signals focused on intraday breakouts, etc. Hence, set profitability as your primary goal and pick the style that suits your trading needs. Using signals fitting your needs will result in dull and happy trading.
- Additional Services: How about getting an FX signal provider with quality trading signals and extra services? It will be a plus! Therefore, check if the signal provider offers educational or social trading services.
Looking for MT4 forex signals is an entirely new thing. You will find a Signals tab in the Terminal window. This section of the site shows the points of the FX signal providers and analytical graphs of their trading performance.
Comparing Forex Signal Providers
Choosing the right signal provider is directly proportional to the profit one will earn. Thus, you will have to compare all the signal providers keenly.
So, begin looking for the provider on the forex signal ranking. The site has ranked all the forex signal providers based on their signal services. Shortlist the ones that interest you and take a closer look at them.
Go to the given comparison sites and look more in-depth at the Forex signal reviews.
Next, register to the signals providers” trial account and crosscheck the site using the checklist above. Also, look at the communication channels the signal providers use. Are they offering their “product” via email, Skype, Telegram, or SMS?
Are they using specialized platforms for trading?
Choose the one that triggers you and fits all the points given in the checklist.
- Forexsignals.com: It offers live streaming along with promotions like cash giveaways, etc. Forexsignals.com gives signals and education on the site.
How To Put The Signals In Use
To open a position based on a forex trading signal is extremely simple. The moment you learn how to “read” these signals,” putting them into use will be no big deal.
- Your first step will sign in to the signal provider’s channel. The providers have a webpage, telegram, Skype chats, etc.
- Next is to get the data offered by the FX signal provider and copy this into your account.
- Now, wait for the closing of the trade and pick up the proceeds.
What Do Best Signals Consist Of?
To be precise, a signal should give information about the following things:
- The currency pair or instrument you will trade is BTC/USD, EUR/USD, gold, silver, etc.
- About the direction of your trade. The BUY or SELL action is shown next to the actual asset price on the channel.
- Know the status of your signal. These signals can be Active, Get Ready, and Closed.
- You can use the active signal immediately as they are. The Get Ready signals will get activated soon but are currently not active. These changes might even disappear. Hence, keep a keen eye on them but don’t hinder these signals until they are Active.
- Closed signals are those that are expired.
- The Entry Price is straightforward. The entry price is the price at which the signal provider suggests you step into trading.
- The trading process will be closed immediately when the market goes against your trading. Stop Loss helps in limiting damage to the trader. The feature is best for earning long-term profits. Note that you need to set the limit on the recommendation of your FX signal.
- The trading process will automatically close if the market goes in your favor. It is termed as the Take Profit. It is an important phenomenon mainly to gain profits at the right time.
- Depending upon the trade setup, there should be comments, interactive charts, and information.
Keep in mind that you can close trades in three different ways. You are aware of closure triggered by the SL/TP in two ways. Another way is to close the trade manually.
The provider will suggest you close the trade whenever the combination seems appropriate. So, to clarify things, the signal providers explain and close prices in the comment section.
Given these circumstances, to increase the profit margin, there are chances that the signal provider will suggest you extend the TP.
How to Benefit from Different Trading Signals
Surprisingly, there are times when you will have to disobey the trading signals to increase the trading potential. In fact, at times, you will have to change a few variables that make these signals up.
A guaranteed way to maximize your profit potential is moving the take profit. Many forex signal services use a fixed pip amount to set the take profit and stop Loss level. They have fewer chances to try tweaking the variables while the trades unfold.
The “Take Profit” and the “Stop Loss” Mechanisms
Whenever you view the trading potential as more than the profit level allowance, please do not wait to move it for some traders obliterating the take profit works. You must not blame the signal service in case your bold goes wrong.
However, when it is about moving the stop loss, it can save your trade and can even doom it. Like in the case of taking profit, the stop is set to a fixed pip number. Moreover, it also goes below the moving average or resistance levels. If this is the case, you are advised to raise the stop loss above the critical level.
The entry price is not fixed, as well. Like the cases above, the signal service prefers to remain safer here. With the evolution of prices, new and better entry prices may be developed.
Whenever the signal services face a change in asset price due to calamities, closing the trade manually is the best option. As no one can predict these events, the bets are off in such cases.
Size of Trade
Messing around with different sizes is another signal-optimization avenue. Some FX signals will be higher in probability than others.
With increasing experience in the field, you will know which trades are which. Expanding the trade size is the best option for trading on high-probability signals. Similarly, you must decrease your traded lot size for trading on low-probability signals.
Correlation Factor
Watching out the correlated FX pairs is essential. For instance, the same signals can often be applied to two pairs, e.g., NZD/USD and AUD/USD. The latter trade will prove to be more profitable than the one suggested by the signal.
Often traders make a huge mistake by not considering the spread while setting the take profits and stop losses. Hence, put the automatic closing points keeping in view the spreads. Also, remember that the spreads vary in different FX pairs.
Costless Forex Signals
Most of the FX signal service providers offer promotions like free forex signals. By this, they enhance their visibility among traders to sell a service/product to them.
Although for promotional purposes yet the quality of the free forex signal shouldn’t be inferior, which is what transpires often.
Premium Signals
The premium forex signals attract the traders and are the source of income for the service provider’s offer. Therefore, the premium signal service needs to deliver from the very beginning and must be of outstanding quality.
Let’s not forget that signal providers will neither guarantee just winners nor put out only winners.
Live and Daily Trading Signals
The high-frequency signals, often known as run-of-the-mill forex signals, are called Live/Daily trading signals. These types of signals are best for intra-day trading.
Social Trading and Copy Trades
When traders use the signals given by experienced traders, it is known as social trading or copy trading.
For example, MT4 offers a section displaying the trades and statistics of those traders who agreed to share their trading information with the community.
The platform gives such traders some fees paid by their subscribers as a reward for providing signals.
On the Signals page, you will see the most successful forex signal providers and the least successful on the bottom. Hence, the system assists the users in signal service selection.
There are some more copy trading services like eToro out on the internet.
Forex Signals for Technical Analysis-Based Traders
Technical analysis-based traders must use forex signals for better and complete trading experience. Also, many proper forex signals take into account the fundamental factors too. TA traders will also expose their trading to the fundamentals when they use such signals.
Technical analysis is best for short-term trading, supply/demand inefficiency-induced price swings. However, fundamentals are best for longer-term, longer-time-frame trades.
Price Patterns
Most of the best recommendations and ideas of the forex signal providers depend upon the price values. The value of prices comprises support and resistance levels. Along with these, technical indicators and price structures/patterns can also be considered.
It is the best way to define TA-based forex signal generation.
Scalping FX Signals
Most longer-term trading signals aim to get tens of thousands of pips in profits. Surprisingly, some FX signal providers also settle for fewer pips simultaneously. They deliver short-term forex trading signals that are best for scalping.
What are the few primary applications for signal-based scalping?
At times when long-term trading signals do not give profits, they offer an alternative to counter that. Choosing the scalp is the best way whenever a trader cannot identify the market and its processes.
If you want to make these signals, you must invest much time.
There are large-range forex markets with long periods of consolidation. These markets do not generally move fast. Thereupon, all the traders who are not patient can choose forex signal-based scalping, which is quick and cashes on minute intra-day price swings.
Likewise, markets with high volatility are not a good option for long-term trading. In this case, too, scalping is the correct option.
Scalping is short-termed; however, its signals do not base entirely on technical analysis. This method includes a fair share of fundamentals as well. The scalping signals combine all indicators like support and resistance levels, stochastic oscillators with economic news, data releases and announcements, and trend lines.
Scamming
- The forex signals industry is open to scamming as the pseudo-science behind it is not a perfect one.
- There is a lot of space for crooked operators to move in this field. Although we have already removed scam-suspicious activities, you should still be able to spot a forex signal scam yourself.
- Therefore, watch out for scams in FX signals like:
- Most FX signal services with extraordinary features and track records are scams.
- The signal services that offer trading with your money and in your stead are a scam, as such setups are no longer signal-based trading.
- The service can be suspicious if the promotional methods are too pushy.
- If you find anything absurd about your signal provider, leave it and go for the next one.
Bottom Line
The article above has given complete information on choosing and using a forex trading signal.
Note that there is a direct link between your signal service and profitability. Hence it should be of exceptional quality.
FAQ:
Are Forex signals legal?
Few corrupt and deceitful services are not trustworthy and are less reliable. Forex signals from the exemplary forex signal service are consistent and accurate. If you need dependable and valid forex signals, research for a better and more convenient service.
What does the forex signal mean?
A Forex signal is a plan or an idea that helps to enter the trade on currency pair at a specific time and price. It is created by a computerized forex robot or human expert and provided to the forex signal service subscriber.
How can I earn money from forex signals?
In this process, the forex signal provider makes calls (regarding buying and selling) for the user to profit from the market. Whether you can make money or not, the monthly fee is charged. That is the reason, which attracts the user, and they consider it.
Who is the wealthiest day trader?
Paul Tudor Jones is the wealthiest day trader. He was responsible for the market crash, shorted in October 1987. As of 2018, his net worth is $4.5 billion, and he is considered one of the alive, wealthiest day traders today.
How can I become the wealthiest day trader?
According to the research report published by some university professors, only 13% of the profit was generated by day traders in a year. Not only this, only 1% of them continuously make money. However, some traders also make money, but sometimes it is might not in your favor.
