Forex Signals - The way to Instantly Trade As you Have Decades of Foreign currency trading Experience
Seriously consider forex signals if you are not yet trading profitably, have limited experience, or perhaps don't have much time to devote to your forex trading.
From the simple one email each day variety to the forex mentor who sits along with you all day holding a hand as you trade, a portfolio of forex trade alerts can be virtually free which enable it to transform you in to a profitable trader instantly.
If like us you've ever analysed a chart and placed your personal trades, you will almost certainly have also sat facing your screen wondering should you be doing the right thing.
Questions like "have I entered this trade past too far ?" and "am I exchanging the right direction (long while i should be short)" will definitely have entered your head.
How many times have you wished you'd an expert trader with decades of know-how guiding your trades, preventing you out of dangerous trades, and pointing you towards trades using a higher probability of success ?
We were certainly in that position often times in the early days, but always imagined the price tag on having an expert readily available would far outweigh any other profits we might make. As it turns out we were quite wrong.
There are numerous services available, known variously as forex signals, forex alerts, or forex tips.
Trading signals are available in a variety of formats, fitted to how much of your day you are able to devote to trading. Company beware, there are loads of scams around too, but we'll demonstrate how to avoid them, and we'll aid you in the better ones.
Forex currency trading Signals - many varieties
The main characteristics of forex trading signals to be aware of are the following;
Cost: Free OR monthly subscription
Complexity: Simple "one email a day" OR Full-Service
Control: You full control Or signal provider trades your a/c in your case
Trading style: e.g. frequent scalper OR low volume swing trader
A free of charge forex signal may at first seem like a fabulous idea, speculate we will reveal here, you might very well prefer to purchase a free subscription service (yes, we know that doesn't make sense - but continue reading)
Most forex trade signals charge a very modest subscription fee, usually in the region of USD $80 - $400 monthly (although happily the majority are at the lower end with this range), while there's also websites which provide forex signals with no charge.
In their simplest form a currency trading signal will send a forex alert email daily listing trade set ups for the next 24 hours.
Some of these are purely computer generated, many are computer generated after which audited by a human expert, plus some are completely researched and generated exclusively by way of a human expert trader who could add some market commentary on their forex forecast.
Some forex currency trading signals are high volume scalpers, calling many trades everyday aiming to profit a few pips on each. Others only call a couple of trades a day, planning to profit 20 - 80 pips on every single trade.
In the more full-service end in the market is the type of forex signal service which offers you with an almost 24 / 7 a day live online broadcast calling currency trading tips as they occur, explaining the logic with the proposed trade and backing it up with an email or even a video clip.
Some currency trading signals will even trade their signals is likely to account for you, allowing you to just sit back watching.
This is similar to such a robot does by making use of forex signal software, but with the added reassurance that it's being done by an experienced intelligent human trader rather than dumb machine following a formula.
Think of full-service forex trading signals as being a forex TV station, there is running in the background on your laptop or internet connected laptop during your day. The broadcast remains quiet if you find nothing to do, freeing your time for the other priorities with your day, then requires your attention should there be a trade to set or manage.
You might be surprised, as we were, to find out that the prices charged by full-service providers usually are very similar to those charged with the one email each day providers.
This type of service usually also may include an interactive facility, helping you to send a message on your forex mentor when you have a question.
Many forex signal services have very loyal memberships, and a few even limit the volume of members they will accept.
Free forex signals (virtually)
On the basis that time is money, in our opinion the amount of time we are able to now devote to other activities by not slaving over our charts for a long time searching for the perfect trade setup, not to mention the improvement in your trading results, has over paid for the very modest expense of the forex signal subscriptions.
Indeed if you apply this logic, subscription based services can effectively be free if you take into account the improvement with your trading profits, along with the freeing of your time for other profitable activities.
If you believe about it, a subscription based forex signal service features a built-in incentive to call profitable currency trading tips, as its usage would soon evaporate whether it failed to provide profitable trading currency tips. "Free" non subscription signals would not have this incentive.
Manage your risk
In almost any aspect of forex 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 complete result should be profitable, but not all systems work all the time. Some forex alerts might have a completely losing week or month.
However, is through our own experience the best way of making consistent profits with forex signals would be to subscribe to several different trading currency signals and trade their signals. If one of which is having a particularly bad week, the mediocre ones should compensate but still net you a profitable week, or break even at worst.
Always do your required research before trading a provider's forex alerts. Good forex signal services will publish their last Six to twelve months results on their site. Some will even show you details of the actual trades they took. Expect to see losses as well as winners - that's just the nature of trading. Indeed, in the event the results show only winners, or perhaps the provider is not wanting to show you any results, as well as to provide contact details of a few of their clients willing to offer a reference be on your guard.
Most will give you some sort of free trial or discounted special offer. Make sure that you clearly comprehend the terms of this offer and know the deadline by which you should give notice to terminate discover happy with the service provided.
In case you compare the last 6 month's link between all the forex signal service providers you intend to use, you must find that taken as a whole they delivered a return.
Past performance isn't guarantee of future results, but recommendations that if you have a good combination of trading styles with your trading signals portfolio you enter with a fighting possibility of consistent profits whatever the market conditions.
Again, think about the cashflow logic products you will be doing here - the subscription costs of each one forex signals service happen to be very modest, and by combining them you might be increasing your probability of consistent profits. They are unable to all get it wrong constantly, and remember they are all incentivised by their membership to get it right as often as you possibly can.
Even with experienced traders calling your trades, it's prudent risk management to not ever ever risk more than 3% of one's initial capital on anybody trade, preferably only 1%. So, if for example your initial capital, (or to put it another way, the absolute maximum you can afford to lose) is suppose 5,000, the position size you take on every trade should be so that if the trade hit your stop-loss, your maximum loss would be no more than 1% x 5,000 = 50.
Using forex signals as trade ideas
In case you prefer not to follow forex tips to the letter, you may still profit from their trade idea.
By way of example, if you receive a forex tip trading the GBP/USD long which has a 40 pip stop loss, but on analysing the charts (following a attendance on a forex program) you feel 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 then to be below the weekly pivot point, and in doing so are happy to possess a longer range target - go right ahead and achieve this.
We were surprised to discover that when we did exactly this using one of our forex signals' tips our trades actually performed much better than theirs did. Two heads superior to one maybe.
The point is though, that without the forex market forecast drawing our awareness of that particular chart at this particular time we would never have seen that trade idea.
This makes the point that while it may at first seem temping to permit a signal provider trade your for you, if you have the time you could actually prefer to manage it yourself.
If you have been by having a good forex study course and understand the concepts of support, resistance, pivot points, trends etc you should always use this knowledge to do your own due diligence on forex alerts. You may well find as we did that you can increase the overall performance of your portfolio of forex trade recommendations.
Free forex signals
This section would not be complete without hitting the ground with forex signals providers who don't charge any subscription fee.
Even as we mentioned above even subscription charging services must be effectively free to you by virtue of calling enough profitable trades to over cover the subscription cost.
Furthermore we prefer to use subscription based forex signals because they have an incentive to consistently call profitable trades, for the reason that their subscribers won't stick to them for very long if they don't.
Free signals in contrast have no such incentive, so keep in mind and trade them at your own risk.