If you trade on the international market, chances are, you’ve come across many forex signals providers thus far. For most newcomers, the main mission is learning how to trade properly, learning the tools of the trade, and understanding the forex market as a whole.
Less than 40% of forex traders are actually profitable. If you don’t want to end up like the majority of your colleagues, you need to gain as much knowledge and experience as quickly as possible. You need to learn what forex signals are, how can they help you, and how to use them.
One of the hardest aspects of using forex signals is finding the right providers. But that’s why we’re here today, to help you find the best forex signals (https://forexrobotnation.com/15-best-forex-signals-tested-reviewed/) and providers. Let’s find out how to to find forex signals that will help you maximize your trading efforts.
We should start by discussing…
What Are Trading Signals for Forex Traders?
A forex signal is an alert that notifies traders about a new trading opportunity in the currency market. Signals are provided by either automated robots or specialized companies via written messages. Some services will send you trading signals for free and some companies will ask for a monthly fee to send them. It all depends on the quality of the service.
Trading signals help novice forex traders make timely, profitable trades. These signals are especially helpful when you don’t have too much experience in forex trading, and you’re still learning how to recognize trading opportunities. But they’re also helpful when you have experience because they can recognize opportunities you might’ve missed.
● Fundamental Forex Signals
The fundamental approach to forex signals relates to things like large events, economic changes, and market news. All of these factors impact both the financial instruments and price movements on a global scale. Fundamental signals are simply one of those events like for instance, announcements of interest, which you can use to make trading decisions.
● Technical Forex Signals
On the other hand, technical analysis mainly concerns previous price movements and patterns. It requires traders to spend time researching and analyzing price movements throughout the last couple of years in an effort to notice any patterns. By seeing how financial instruments have behaved, you can possibly predict their movements in the future, use this information to make trades, and make a profit while doing so.
Two Types of Forex Signals You Should Know
Those were the two categories of forex signals. Now we have to explain what types of signals exist out there. The type is determined by the function of a signal and in what way it operates. There are two types of forex signals out there, including:
● Manual Forex Signals
When using manual signals, you need to sit in front of a computer screen for an extended period of time and look for signals on your own. Once you notice a visual signal on a chart, you can make a decision whether to sell or buy a currency pair.
● Automated Forex Signals
With the recent development of trading software, traders don’t need to spend hours behind their computers. They can have machines do the job for them. You can use a piece of software to seek out, recognize, and notify you about sell/buy signals.
How to Find the Best Forex Signals
If you’re looking to find paid forex signals, you should know that both automatic and manual ones can be found and bought online. When looking at different signal providers, make sure that they offer a free trial period for their signals.
A legitimate company, with nothing to hide, will allow you to test their service first. That way, you’ll be able to make sure whether the quality of the signals is up to par with your standards or not. Working with transparent companies is vital if you want to have long-term success.
In addition to a free trial, here are a few more things you should take into account…
1. Time Zone
Before picking a signals provider, you need to see what their time zone is. You want to use a provider that operates in the same time zone, so your trading signals can trickling while you’re still wide awake. You won’t have much use of signals that come while you’re sleeping. If the provider doesn’t have a time zone on their website, sign up for a free account to check.
2. Track Record
Next, you need to check and see what’s the signal providers’ track record. You should ask them for some referrals. If they’re 100% legit, they’ll be completely honest with you, not only about previous users, but also about their setup, customer service, and success rate.
3. Full Analysis
You also want to work with a provider that offers the full package. Cheap and low-quality companies will give only the entry price and SL/TP and nothing else. You should know how the signal you’re using is supposed to work. That’s why the provider needs to give you proper charts and market analysis, to explain everything in full detail.
4. Your Needs
Last, we have the most important thing you need to consider. The style of the signals needs to fit your trading style. Besides the two basic types we mentioned earlier, signals for the forex market run in several different styles. You have short-term, long-term, interlay breakout signals, so on and so forth. Your profitability should be your only priority.
We hope that we introduced you to the concept of forex signals and explained how to use them properly. By following the tips from this article, you should know how to find the best forex signals for your trading style in no time. Of course, this article isn’t end all be all. This is just a short introduction, so we urge you to do more independent research on your own. The quicker you learn everything you need about forex signals, the quicker you’ll find the right ones.