Are you looking for the best Forex signal? Well, there are a few ways you can get them. I’ll discuss one method here.
Forex signals can be sent by a firm that specializes in Forex trading. These come as orders to buy and sell currency pairs. The information you receive will have exact prices and times to buy or to sell a specific currency pair.
These firms will spend many hours doing analysis and research of the markets. It can be very tedious and time consuming work. They put significant resources to determine the Best Trading Signals for its clients as too many bad signals will erode their customer base.
Here’s an example of how you may receive a Forex signal:
“EUR/USD looks to be bottoming out on the 1 hour chart. There is significant support at XXX. MACD is giving us a bullish divergence signal. Your entry point is when price closes about YYY on the 15 minute chart.”
So, as a Forex trader, you monitor the firm’s secured website, or wait for emails that provide similar information like I just described. It’s up to you to place the order in your trading account.
You won’t find signal services that guarantee that you’ll make money. If they state this, I’d be very cautious. Even with massive resources, years of experience, and powerful trading platforms, they can still get it wrong occasional.
This leads me to a couple of more points. Never put 100% faith into a new firm you decide to deal with. It can be our nature to get impatient and want immediate results. The right way to start is to use their alerts, enter their suggestions in a demo account, and monitor their signals to ensure they make consistent profits.
The second point worth mentioning is capital preservation. We can allow out emotions to get the best of us. This can be very bad for your trades. It’s tempting to load up a trade with lots of cash if you’ve had a few profitable trades in a row. The idea of hitting a trading home run sounds great. However, you are better off in the long run to apply strict money management rules. I only use 10% of my account on any one trade.
For some people, this type of service is a perfect. You do not have to spend countless hours studying the latest trading methods, doing research, or trying to interpret a bunch of chart patterns to know if you should trade or not.
Others may want to be very hands on and determine their own trades. A word of caution with this approach. You need to spend many hours practicing. It’s very difficult to become a hands-on trader using manual trade setup techniques. For most, this is not the right way to go.