Signals in the Forex market were created to help people make money while not making mistakes or trading on their own. Forex market signal is a signal to open or close a transaction that is sent from one trader (signal provider) to another (signal user). In Forex signals trading, transactions on signal user accounts are executed automatically when information is received from the signal provider manually after receiving an email or text message.
If you register with the signaling provider platform, you will need to select a strategy and then the transactions for that strategy will be automatically copied to your account. Not bad, is it? Before you look for a reliable signal provider, you should know that you may have difficulties. First, past results do not guarantee the same outcome in the future. Second, you must find a strategy that matches the size of your deposit. If you have a small deposit, it makes sense to start with conservative low-risk strategies until you have enough margin to tolerate higher slippage.
Finally, you need to make sure that you control your slippage when you receive each signal to «buy» or «sell». Ideally, you should be able to change any user parameters that would automatically close certain transactions if trading is outside the scope of the chosen strategy. Although real-time signal trading in the Forex market is generally a reliable service, there are situations where signals arrive with delay. In this case, the price of the asset has already changed (slippage) or is completely lost, leaving the user with an open transaction that is already closed in the signal provider’s account.
Who Supplies Signals In The Forex Market?
The signal provider is a trader who trades in his own real or demo account and sends signals to open or close the trade to his subscribers. In most cases, this process is automated and almost time-consuming. The signal provider must do nothing manually to send the Forex signal indicator to its copiers.
There is currently a wide range of signal services in the Forex market and you need to know how to choose the best signal provider. There are many platforms that allow you to register and sell signals without first checking the experience of traders, knowledge or management risks. Because after registration, the signal vendor trades results appear publicly, users can do their own analysis to determine whether to follow the strategy.
How To Find A Good Signal Provider
Choosing a Forex Signal Provider is important for determining the size of your deposit and personal investment goals. For most investors, choosing a stable strategy that yields 5-10% per month is more important than making a random profit of 300% followed by a sharp decline. You should choose the strategies with the optimal risk-to-profit ratio that seem best suited to your investment portfolio. Compare 3-4 strategies and then check their statistics carefully. With a small deposit, it’s important to look at the average number of trades and the volatility of the strategy to make sure your trades aren’t automatically closed if the signal provider experiences a drawdown. To avoid unpleasant surprises, read the feedback about the signal provider carefully and be careful if its trading style often changes.
Paid Signals In Forex Market
Many Forex signals service providers charge a monthly fee for being the authors of their strategy, as well as a subscription fee for each Forex signal that the user subscribes to. In this case, the signal provider itself determines the fee it wants to charge for signals to open or close a transaction. The fees charged by Forex signal providers are quite often dependent on their popularity and profitability. Reliable and successful traders usually set higher tariffs for their services and can be quite expensive.
Forex E-mail Signals Or Automatic Trading Of Copied Transactions?
Forex signals can be sent to users over different channels from e-mail subscriptions or SMS messages to the phone to automatic copying. The first two options require action from the signal user: when you receive an email or text message, you need to open the trade manually. On the one hand, thus, the trader has more control over his finances and can decide whether or not he wants to follow a particular Forex Signal. On the other hand, this creates too much pressure on the signal user because he never knows when the signal will arrive, and must be alert by promptly opening or closing trades at any time of the day and night. Another serious drawback is the time delay. Responding to Forex’s signal manually always takes time during which the price of an asset can change significantly.
When the signals are copied automatically, the signals are copied faster and do not require any action from the signal user. When you have a stop-loss installed on the trade, you can stay calm and only occasionally check your account, as often as you want it or whenever it’s convenient for you. This situation is quite reasonable for the user of trade signals on Forex.