What is a Forex Signal Service & How Do You Pick One?

What does a forex signal service consist of?

A trading signal - simply put - tells you when to put on or take off a trade. For instance, an expert trader sits at his desk, trading his account. Whenever the trader enters the marketplace, he alerts his signal subscribers, providing them the chance to enter the same trades as him. Some providers also provide automated trading, occasionally called a Trade Copier or a Trade Cloner. This Trade Copier will carry out the same trade on the customer's account, so clients do not need to be sitting in front of their trading desks all day executing their trades themselves.

How would a trading signal service benefit me?

For novices: trading alone is emotionally stressful and tactically difficult since you often have no clue what to do next, particularly when trades go sour. Like any other occupation, you will not see overnight success (regardless of the false promises many brokers will give you). Following along in the footsteps of a successful, proven trader can significantly alleviate the challenges of being a beginner.

A signal service that is automated is useful for busy people who do not have the time to sit all day in front of the computer, trying to find trades. Being subscribed to a signal service indicates there's a professional trader sitting and trying to find trades on your behalf, potentially eliminating tons of time and headaches. Additionally, your outcomes may improve since the trader you are following has substantially more experience and skill than you do.

For veteran traders: trading alongside signals offers you a real chance to hone your skills and also offers an additional source of rewarding trades to diversify your "profile" of strategies. Additionally, you join a community of like-minded traders who communicate (with chat and live trading rooms) during the trading day and help each other achieve much better results.

Exactly what are the downsides and problems with signal services?

By far the biggest landmine to avoid is the hidden agendas behind dishonest providers. For example, some brokers supply complimentary signals services. You've got to ask yourself why would somebody offer free signals if they have substantial value? The response in most cases is that they have a hidden motive-- to press you to trade more. The equation is easy: the more signals they provide you, the even more trades you make, and the more commissions they make. That's why their main interested is to focus on quantity of signals rather than quality of signals. These type of freebie signals have really discredited the signals industry, however luckily there are still the rare paid signals service providers who offer truly high-performing services.

Some signals services also entail many onerous time restrictions. Numerous signal services require you to be near a computer the majority of the day, so you can immediately get in the marketplace whenever you get a signal. However, this issue has been overcome using exactly what's called a "Trade Copier", which is an automated robotic that gets its trading commands straight from the signals service trader.

Finally, the forex market is full of poorly performing traders. Calling yourself a trader and supplying signals is simple, however providing signals which actually reliably supply meaningful returns on your risk capital is an entirely different story. The statistics are that 95 % of traders lose money in Forex. This applies to signal companies as well. So, your mission is to find among those 5 % of signal carriers who really earn money in currency trading.

Selecting between the myriad of forex offerings out there can be intimidating. To make the process easier, rely on the knowledge of the community at Top Trading Software, where you can read actual user reviews of forex signal providers and make the best purchasing decisions for your own trading style and risk appetite.

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