What are Forex Signals?
There are certain trading signals that give indications to the trade. These forex signals are delivered by email, instant messenger or direct to your desktop. Some services even offer auto-trading, allowing you to auto-execute their trading signals direct into your broker account.
What is a signal service?
A Signal Service provides alerts on trading opportunities. For example, a professional trader sits at his desk, trading his account (or his company or hedge fund account). Whenever the trader enters the market, he also sends an alert to his subscribers, giving them the opportunity to enter the same trades as him. Some service also provide an automated robot, sometimes called a Trade Copier or a Trade Cloner. This robot will execute the same trade on the client’s account, so clients don’t need to actually go to their computer and execute the signals manually.
Why should I use a signal service?
Whether you a new or experienced trader, there are signal services out there that will contribute to your profits or set you on the right track to trading success.
For beginners: trading alone can be confusing and difficult. Like any other profession, you will not see success over night (despite what some brokers might try to lure you into believing…) So, on your first steps in this exciting but dangerous world, professional signal services can take you hand in hand to learn the way real professionals trade. Plus, you have a chance to copy the trades of a pro into your own account, so you start trading on the right foot.
A signal service is also suitable for people who do not have the time to sit all day in front of the computer, looking for trades. Being subscribed to a signal service means there’s a pro trader sitting and looking for trades on your behalf. Saves a lot of time and headaches, plus of course the results should be better, as you’re having a highly experienced professional working for you.
For veteran traders: it’s a real opportunity to hone your skills, and provide an additional source of profitable trades to diversify your “portfolio” of strategies. It is also an opportunity to join a community of likeminded traders who communicate (through chat and live trading rooms) during the trading day, and help each other achieve better results.
Why are Forex trading signals important?
These services are offered by either brokers or professional traders or some market analysts through desktop or pager alerts, emails and SMS. They may provide additional automated alerts also, it is important to look at any extra features provided. You have to pay either a quarterly or monthly fee depending on the broker you choose. These fee may vary from one Forex signal service provider to another, however, they would range anywhere between $50 and $250.
It is always better to subscribe to these Forex trading signals as you need not spend time in monitoring the market for entry and exit points. However, it is also essential to analyze the track record of the Forex trading signal provider before subscribing, to ensure that the majority of the time, they were right, and the track record is reliable.
One of the main advantages of using Forex trading signals is that you need not worry about analyzing the market. This is taken care of the Forex trading signal providers. They also tell you the entry and exit point by monitoring and analyzing the market.
As I said, this is a paid service and in general, they offer Forex signal services to leading currency pairs like EUR/USD, GBP/USD, and USD/JPY. For some providers, you may have to pay an additional fee to get signal services for other currencies or pairs that are not used often or in other words, rare. Few providers will also provide you with the charts that they use for taking these market decisions.
Even though, Forex trading signals help you in minimizing risks or losses in Forex trading, it is vital that you have self-confidence that you can do good trading and can gain profits. Never do trading when you feel insecure.
I would recommend subscribing to these Forex trading signal services at least till you have gained confidence in trading or if you do not have the time to monitor and analyze the market. It can help you develop your trading strategy as you observe how another, successful trader operates.