How to understand trading signals in the forex market.
There are trading signals which act as the basis for traders' decisions to execute a transaction. They, so to speak, significantly unburden the life of a trader eliminating the need for long market analysis, especially at the initial stage or if you combine work or studies with trading in the Forex market. In other words, Forex signals are a special notification for traders who are subscribed to a signal which informs them when they need to make a transaction on a particular currency pair, in what direction to act (buy or sell) and also when to close a position. Free online Forex trading signals are means of automation of the process. Signals vary in levels of efficiency and, of course, the more signals notify you that you should enter a trade, the higher the chances that it will be successful.
All of FX Market Leaders signals are based on technical analysis of Forex graphs as well as fundamental analysis of economic situation and the current market news. Arguably, one of their main requirements is the compatibility with different traders' styles and strategies because if they do not, there is no point in looking into them in the first place. No one wants to be tied to a certain style just because their preferred signal cannot be changed. Good signals can be adjusted to fit various trading strategies. To find a good service use the so-called Forex signals ratings. Read what the first 3-5 reviewers have to say and start testing. Moreover, you have an opportunity to test them on your own without many consequences since you can get them for free. Additionally, it is important to trust your own judgement instead of following someone else's advice so if you can, you should prove that all of the claims are indeed true. What you can easily do is use any of trading signals offered on the website.
It is necessary to distinguish two options for providing signals: signals by professional traders and signals from the MTS (mechanical trading system). Considering the human factor, signals of the first type are considered more advanced - only an actual person can take the fundamental factors into account. On the other hand, the robot is not subject to emotions and operates according to the given algorithm calculating all the indicators more quickly than a person could.
One of the requirements is accessibility, meaning a signal should not be too difficult to keep track of. That is why FX Market Leaders signals made sure that their customers would be able to follow them. As soon as a signal goes live on their signal page or as soon as you get a notification on your mobile, open a trade at the spot price in the same direction with the signal. Occasionally, they release commentary with signals such as "If the price gets close to our take profit, push the take profit target further and stop loss to breakeven" and you would benefit from taking these remarks seriously.
Here is a more detailed guide to how this website operates. If you go to the signals page on the FX Market Leaders website, you are going to see live trading opportunities appearing in the signals box. For example, there can be an open buy signal and 'get ready' alert on the NZD/USD currency pair. In general, 'get ready' alerts indicate market opportunities coming soon and allows us to prepare for the signal which is about to come. That alert will later turn into a new active signal. But you need to remember that in order to execute these trading signals you need to have a live trading account so in case you do not already have one, you can click on one of the recommended brokers or just click the 'trade now button'. It leads you to opening an account page where you can sign in; it should not take more than a couple of minutes to fill the form.
Once you are logged into your account, you will have two boxes with the upper box displaying short-term signals and the lower one indicating long-term signals; you also have the live currency rates on the right. When you find signals which you want to copy into your trading account, switch back to that page and quickly execute the trade after choosing a proper leverage for it. Also it is much simpler to not change the stop-loss and take-profit which appear straightaway, you should wait until you open your position to easily edit them. You can let your positions close automatically by reaching its stop-loss or take-profit levels. However, professionals still advise you to monitor the signals page every once in a while to follow updates or changes that sometimes appear in the comments column. You need to decide if you want to follow this recommendation. Remember that with FX Market Leaders you can always decide to close your positions manually. If you have enough open positions, you can just ignore new "get ready" signs. Obviously, you can make massive profits if you invest more in each position, although you should not open positions with large amounts before you feel your full control of the system.
Advantages of using trading signals in Forex trading:
- Stable revenue when closing trades.
- Minimum time spent on market analysis.
- Ability to work from any place and at any time.
- Help of professional traders.
All that said, you should be wary of some free trading signals because you could try hundreds of free signals and still waste a lot of time and money. Even though you technically do not pay for it, free signals can end up costing you a lot. Here are types of free signals you should avoid:
- Signals coming from a broker - most brokers do not benefit from what their customers earn. Therefore, it is not beneficial for them to send good signals. Chances are that you find unprofitable signals even if the statistics indicate otherwise
- Signals coming from forums – it is unlikely that somebody generating signals for other people for free with no responsibility is a good idea. You can test them for some amount of time with subsequent monetization.
- Signals from people or services with similar features:
- no independent external statistics (investing.com, myfxbook.com);
- secrecy about an author or a service (meaning it is impossible to verify a person/company is indeed real);
- growing projects (less than a month);
- statistics issued from a demo account.
You can create a certain algorithm for trading signals yourself, subscribe to one of the many services with trading signals online or contact a more experienced Forex market participant and purchase one. Such professionals are able to conduct comprehensive fundamental analysis and instantly make necessary changes considering there are news stories coming out from all over the world. Beginners have a long way to go if they want to reach this level but this does not mean that they are not able to achieve success. Like any profession, Forex trading requires relevant preparation which free signals can assist with.
You can also familiarize yourself with fraudulent brokers.
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