Forex Signals

A forex signal or trading signal is a proposition sent to a trader of financial instruments, for buying or selling a specific instrument at a particular price and/or time.

Trading signals are typically sent privately, for example via email or SMS, or publicly, such as on a forum/blog or social media website.

The dawn of electronic trading allows individuals to place trades instantly from the comfort of their home computer or smartphone.

This in turn has spawned an ever-increasing wave of trading signal providers who usually offer a fixed monthly fee for their service.

Service providers either send their subscribers the parameters of the signal, (e.g. when to enter, exit or modify the position), manually, or by way of an automated robot.

Forex signals are the most popular form of trading signals, where signals inform the trader concerning the conditions for a specific currency pair or set of pairs.

This will usually include the entry price, the take profit price, the stop loss and a time to close out a trade depending on the provider’s strategy.

How to Use Forex Signals?

The first thing a person contemplating using a trading signal service must do is a thorough check up on the individual or company offering their service.

Key questions to ask are: what are the signals past performance? Is the trader recognized in the industry? Does the provider offer ongoing support?

Is there a community of traders one can discuss with? Without doing one’s due diligence and research, traders can often get stung by poor quality signals, of which there are many.

On the flip side, successful trading signals have a string of benefits.

Since the subscriber simply executes the instructions given to them by the signal provider, this eliminates the need to gain experience in the market in order to trade themselves.

Regardless of which forex signals you utilize it is still advised to spend time watching and analyzing charts.

Having said that, it’s also essential to remember that past trading performance is never a guarantee for future returns.