Forex Signals – How to Instantly Trade Like You Have Decades of FOREX CURRENCY TRADING Experience
Seriously consider forex signals if you’re not yet trading profitably, have limited experience, or just don’t have enough time to devote to your forex currency trading.
From the simple one email a day variety to the forex mentor who sits with you all day holding your hand as you trade, a portfolio of forex trade alerts could be virtually free and can transform you right into a profitable trader instantly.
If like us you’ve ever analysed a chart and placed your own trades, you will probably have also sat before your screen wondering if you were doing the right thing.
Questions like “have I entered this trade too late ?” and “am I trading in the proper direction (long when I should be short)” will surely have entered your mind.
How many times have you wished you had a specialist trader with decades of experience guiding your trades, keeping you out of dangerous trades, and pointing you towards trades with an increased probability of success ?
We were certainly in that position many times in the first days, but always imagined the expense of having an expert on hand would far outweigh any extra profits we might make. It turns out we were quite wrong.
There are many services available, known variously as forex signals, forex alerts, or forex tips.
Trading signals come in a range of formats, suited to how much of your day it is possible to devote to trading. And yes beware, you can find loads of scams on the market too, but we’ll demonstrate how to prevent them, and we’ll direct you towards the better ones.
FOREX CURRENCY TRADING Signals – many varieties
The main characteristics of forex trading signals to be aware of are as follows;
Cost: Free OR monthly subscription
Complexity: Simple “one email a day” OR Full-Service
Control: You keep full control OR the signal provider trades your a/c for you
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, but once we will reveal here, you may very well prefer to pay for a free subscription service (yes, we realize that doesn’t make sense – but continue reading)
Most forex trading signals charge a very modest subscription fee, usually around USD $80 – $400 monthly (although happily most are at the lower end of the range), while there’s also websites which provide forex signals for no charge.
In their simplest form a forex trading signal will send you a forex alert email once a day listing trade set ups for the next 24 hours.
Some of these are purely computer generated, some are computer generated and audited by a human expert, plus some are completely researched and generated exclusively by a human expert trader who may then add market commentary to their forex forecast.
Some forex currency trading signals are high volume scalpers, calling many trades in a day aiming to profit a small number of pips on each. Others only call several trades a day, looking to profit 20 – 80 pips on each single trade.
At the more full-service end of the market is the sort of forex signal service which gives you with an almost 24 hour a day live online broadcast calling forex currency trading tips because they occur, explaining the logic of the proposed trade and backing it up having an email or even a online video.
Some forex trading signals will trade their signals in your own account for you, leaving one to just sit back watching.
This is similar to what a robot does through the use of forex signal software, but with the added reassurance that it’s being done by an experienced intelligent human trader rather than a dumb machine following an algorithm.
Think of full-service forex trading signals just like a forex TV station, which you have running in the background on your pc or internet connected laptop during your day. The broadcast remains quiet when there is nothing to do, freeing your time for the other priorities in your entire day, then demands your attention when there is a trade to place or manage.
You may be surprised, as we were, to discover that the prices charged by full-service providers are usually nearly the same as those charged by the one email a day providers.
This type of service usually also contains an interactive facility, enabling you to send a note to your forex mentor in case you have a question.
Many forex signal services have very loyal memberships, and some even limit the amount of members they will accept.
Free forex signals (virtually)
On the basis that time is money, inside our opinion the volume of time we can now devote to other activities by not slaving over our charts for hours searching for the perfect trade set up, not forgetting the improvement inside our trading results, has more than paid for the very modest cost of the forex signal subscriptions.
Indeed in the event that you apply this logic, subscription based services can effectively be free once you look at the improvement in your trading profits, and the freeing of your energy for other profitable activities.
If you think about it, a subscription based forex signal service has a built-in incentive to call profitable forex currency trading tips, as its subscriber base would soon evaporate if it failed to provide profitable currency trading tips. “Free” non subscription signals do not have this incentive.
Manage your risk
In any aspect of forex currency trading your primary goal would be to manage your risk. Choosing, and trading a forex trading alert ought to 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 entire result should be profitable, however, not all systems work constantly. Some forex alerts may even have a totally losing week or month.
However, we’ve found through our very own experience that the simplest way of making consistent profits with forex signals is to subscribe to several different forex trading signals and trade all of their signals. If one of them is having a particularly bad week, the others should compensate and still net you a profitable week, or break even at worst.
Always do your homework before trading a provider’s forex alerts. Good forex signal services will publish their last 6 – 12 months results on the website. Some will even demonstrate details of the actual trades they took. Be prepared to see losses along with winners – that’s just the nature of trading. Indeed, if the outcomes show only winners, or the provider is unwilling to show you any results, or to provide contact details of a few of their clients willing to provide a reference be on your guard.
Most will offer you some type of trial offer or discounted special offer. Make sure that you clearly understand the terms of this offer and know the deadline where it is advisable to give notice to terminate if you are unhappy with the service provided.
If you compare the final 6 month’s results of all the forex signal service providers you want to use, you should find that as a whole they delivered a profit.
Past performance is no guarantee of future results, but we have found that when you have a good mix of trading styles in your trading signals portfolio you’re in with a fighting chance of consistent profits regardless of the market conditions.
Again, take into account the cashflow logic of what you will be doing here – the subscription costs of every forex signals service already are very modest, and by combining them you’re increasing your probability of consistent profits. They can’t all get it wrong all of the time, and remember they are all incentivised by their membership to obtain it right as often as possible.
Even with experienced traders calling your trades, it’s prudent risk management never to ever risk more than 3% of one’s initial capital on anybody trade, preferably only 1%. forex signals So, if for instance your initial capital, (or even to put it another way, the utmost you can afford to lose) is let’s say 5,000, the position size you take on each trade should be in a way 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
Even if you prefer not to follow forex ideas to the letter, you can still benefit from their trade idea.
For example, if you get a forex tip trading the GBP/USD long with a 40 pip stop loss, but on analysing the charts (following your attendance on a forex training course) you feel more comfortable placing the stop loss let’s say 63 pips below entry, giving the stop protection below an obvious area of recent and prior support, which happens and to be below the weekly pivot point, and in doing so are happy to have a longer range target – then go on and do so.
We were surprised to find that whenever we did exactly this with among our forex signals’ tips our trades actually performed much better than theirs did. Two heads much better than one maybe.
The point is though, that without the currency markets forecast drawing our focus on that particular chart at that one time we would do not have seen that trade idea.
This also makes the idea that while it may at first seem temping to let a signal provider trade your account for you, if you have the time you may actually prefer to control it yourself.
If you have experienced a good forex program and understand the concepts of support, resistance, pivot points, trends etc you should always use this knowledge to perform your own homework on forex alerts. You may well find as we did that you can improve the overall performance of one’s portfolio of forex trade recommendations.
Free forex signals
This section would not be complete without mention of forex signals providers who don’t charge any subscription fee.
As we mentioned above even subscription charging services should be effectively free to you by virtue of calling enough profitable trades to a lot more than cover the subscription cost.
In addition we would rather use subscription based forex signals because they have an incentive to consistently call profitable trades, in that their subscribers won’t stay with them for very long if they don’t.