Trading made easy with forex signals
Everyone needs a little help when it comes to trading forex as even successful traders admit that the market has a lifelong learning curve. The concept is simple enough to grasp but in reality, very hard to master. For those who can’t afford the time to figure it all out however there are still viable options out there that can help speed the process along. Besides finding a mentor or a tutor which is also cumbersome endeavor, a provider of trading signals or ideas can be the next best thing.
Forex signals and automated trading, in general, has many advantages for newbie and veteran traders as they can alleviate some of the guesswork involved in market analysis and can help you identify profitable opportunities in different markets that you wouldn’t even think of including in your trading plan. Diversification of your investments can help compound profits and minimize your exposure to the risk of a single market’s fluctuations. However, sometimes it’s best to do one thing and do it well instead of being a jack of all trades and master of none. As such, if you find a service that specializes in a specific instrument like the EUR/USD or GBP/USD, don’t hesitate from checking them out.
How it works
If you wish to invest in forex, subscribing to a forex signals service may get you results and fast-track your journey towards reaching your financial goals. The great thing about forex signals is also the fact that it can be as involved as you like it to be. You can either receive trading tips on a set of currency pairs or commodities which you can incorporate in your daily trading session or even have the trades suggested by your provider applied directly to your trading terminal.
Usually, these services come at the cost of a monthly or quarterly subscription fee but it’s also possible to find free forex signals around the web, your broker or your favorite social media platform. It goes without saying, however, that free services probably aren’t of the highest quality and you may be better off investing in a premium service that is both reliable and trustworthy. If you do decide to opt for the free service, as an alternative, you may also look to follow blogs or trading forums where users regularly post trading ideas and advice.
What to look for
In case you are looking for a complete hands-off investment approach that doesn’t involve you checking your terminal by the hour, you should make sure that the service offers automated trading via a signal or expert advisor in your trading platform and also that your broker actually supports automated trading on the platform provided.
As long as you are registered with a regulated broker and the signals service has a great track record, you should be safe enough to set it and forget it. If you have the time to ensure that the trading signals are indeed accurate that’s even better. The way to do that, of course, is trying them out first-hand but you can avoid using any real money by applying for a demo account with your broker of choice. These are usually available for free and can be used to familiarize yourself with the platform, the price charts and tweaking the signals to your liking.
An important tool in every trading plan is a well thought out risk management strategy. How can you manage your risk? Modify your position size or trading lots to minimize your exposure to the market, use low leverage and tight take profit/stop loss limits. Always make sure that the risk doesn’t exceed the potential reward, otherwise, a few bad trades can quickly leave your account in the red.
Most trading platforms also offer the capability of testing trading strategies on historical price data which helps to confirm the accuracy of your forex signals – at least on previous market conditions. It’s not a guarantee of the signal’s future performance but it can give you some insight as far as profitability over time and risk management is concerned.
As a rule of thumb, you shouldn’t be spending more than $50 to $250 per month for access to a forex signals service and a trial period should be requested if possible as well. Also, if you aren’t fully convinced by the skills of the provider and don’t feel comfortable following the trading ideas offered, it’s best to move along and find a more dependable and transparent service. There’s always a better trader to find if you look hard enough.
Trading with forex signals checklist
Forex signals make trading forex more accessible user-friendly but not all services are created equal. Check below for a handy list of all the basics you need before you get started:
- Sign up with a reputable and licensed broker
- Request for a trial period from the forex signals provider of your choosing
- Implement the trading signals on a demo account for at least a week to verify profitability
- Utilize take profit and stop loss orders to lock profits and minimize the risk