Subscribe To Forex Signals For Improving Your Trading Results
Have you ever wondered why the Forex markets tend to move against your position at the same moment you enter a trade? Are you perplexed by the fact that regardless of the countless hours of analyzing the markets and reading the best online resources have not helped you to master the markets in a profitable manner? Popular Forex trading statistics show that almost 90% of traders lose money in the long run and only less than 5% of the total traders make some profits in the retail FX markets. The incredible amount of leverage and the high volatility of the Forex market have led to a high attrition rate, which can be considered as the main reason behind the continued failure experienced by a vast majority of the retail trading industry.
Successful Forex trading requires a lot of different considerations and a focused psychological preparation. A trader can have excellent technical and fundamental analysis skills to read the trend in the markets accurately, but ultimately, emotions and other factors such as market conditions, account equity, and leverage can all play a vital role in determining the success and failure of his or her trading strategy. We have seen countless brilliant minds quit Forex trading due to their inability to comprehend the markets, while we have also seen below-average traders making consistent profits without any significant losses. Therefore, if you are one of the losing traders that can’t quite get hold of a successful trading strategy, it is time for you to consider Forex trading signals to help you with your trading career.
Forex signals are trade recommendations offered by independent analysts or Forex signal service providers that help traders to make trading decisions with or without performing their research and analysis. Forex trading signals constitute of trading ideas such as the financial asset (currency pair), entry price, exit price, take profit, and stop loss levels. Most modern trading signals are considered to be far more advanced than simple buy or sell ideas, as third-party Forex trading signal companies now allow traders to manage their trades like larger institutional investors.
In most cases, the best Forex signals should help in reducing the disparity between winning and losing. Trading signals might also become a saving grace for traders that are looking for a slight edge in the markets to turn their losers into winners. Although FX trading signals are considered to be an excellent way of enjoying profitable trading, success is not always guaranteed. As with all tips and pieces of advice available in the financial industry, it is up to the trader to make full use of all the available tools to come out on top without blowing out their accounts.
Are Forex Trading Signals Expensive?
Forex signals come in different subscription packages. Some Forex trading signals are sold to traders at a high premium, while others are available for free from a community of traders, Forex brokers, or independent signal service providers. Under most circumstances, Forex trading signals do come with a price, which can start from as low as $5 per month and can go all the way up to $1500 per month. The overall cost-value of paid Forex signals is dependent on your trading capital and your monthly expenses. For example, if you have a Forex trading account with $500 in equity and a subscription package that costs $500 per month, you will find it hard to offset the cost of the signals package just from your trading results alone. On the other hand, if you have a $100K standard account and a $1000 monthly signal service subscription that nets 5% profits per month, you can easily offset your signals subscription cost and enjoy a respectable return on your investment.
Traders should also consider the other associated costs of paid trading signals, which come in the form of trading losses, spreads, commissions, and SWAPs. Although these are indirect costs related to trading the FX markets, by depending on a Forex trading signals provider for your trading calls, you are essentially allowing a third-party professional to manage your account indirectly. Hence, every wrong call, overnight trade recommendations, and delayed signals can result in untimely market losses and increased fees for trading, which should be added to your signals expenses. These trading costs might be insignificant for smaller trading accounts, but larger trading capital and increased account equity may witness significant losses, which can lead to a significant drawdown at the end of a trading calendar.
Are Paid Forex Signals Worth It?
Forex signals should not be treated as a get rich quick scheme, immaterial of what the signal service provider claims on its website or through their promotional materials. Subscribing to a signals service package is not a sure-fire way to profitable trading, as even the best signal service providers can have losing months. In fact, signal service providers rarely invest their money in the Forex markets; instead, they make money from subscriptions and other associated fees.
Trading signals can at best offer you recommendations about the general directions of a financial asset and the prevailing trend of the market, but they do not guarantee the outcome of your trades. Every Forex trading signals provider has several terms and conditions associated with their signals service package, which ultimately states that the company is not responsible for the losses that may arise due to the use of their signals. These terms also state that past performance is not an indicator of future results, which nullify the prospects of expecting the same kind of performance on a long-term basis. Most of these companies also recommend trading these ideas on demo accounts, which virtually defeats the purpose of subscribing to a signals service in the first place.
Regardless, paid trading signals are worth it if you know how to use them to your advantage. Due to the costs involved in a paid signals service, analysts try incredibly hard to offer you the best trading ideas to create a loyal customer base. As a trader, you should carefully consider the trading ideas and implement several conservational strategies to ensure that you are protected from significant losses if you receive bad trading signals. By lowering your leverage and proportioning your trade sizes according to your account capital, you can control your losses and actually take advantage of the signals for long term profitability. Forex trading is all about controlling your losses and not about how much you can profit from the markets, which requires you to be responsible and disciplined in your trading ventures.
How To Find The Best Forex Signals For Free
It is understandable if you are unwilling to pay for Forex signals, especially when some signals service can cost as much as a trading account. These days, traders can open a Micro account for as low as $1, and it doesn’t make sense to spend $50 or $100 on a Forex signals service, especially when the same amount can help you open a trading account. Therefore, as a smaller trader, you do have the option of getting trade recommendations through free Forex signals service providers, which allow you to trade the markets with some amount of professional supervision.
Free Forex trading signals may not be considered to be as reliable as paid trading signals, but they are capable in their own rights. Numerous free signal providers offer you access to their signal subscription service for free, or for signing up for their mailing list or newsletters. Some affiliates and white label brokers also provide free trading signals as part of their online services to entice traders into opening accounts with their preferred brokers in return for a commission per verified conversion.
Most Forex trading sites and review portals also provide access to third-party signals service providers that offer free signals through numerous online mediums. You can also find specific signal service review websites that routinely review and rate the different Forex signals service providers in the market to provide you with a clear picture of the performance and costs of each service. These review websites are great online resources to help you find a free FX signals company or a paid service provider that gives away subscriptions as promotions or in exchange for a review or a performance evaluation report.
Taking Advantage Of Free Forex Signals Offered By Top Forex Brokers
Some of the best Forex brokers in the market also provide a free signals package along with their brokerage account. A select few of these brokers might choose to offer signals from third-party Forex signal providers, but a majority of the top FX companies prefer to have their own team of experts and market analysts to create trading alerts and provide other useful market information to its clients. As a client, you can use this trading information to trade the markets or to support your trading ideas for better accuracy in your trading.
It is not difficult to find Forex brokers that offer free trading signals, as a majority of these companies advertise about their free signals offering through their website or through their customer service department. Some top brokers have also partnered up with well-established signals service providers by providing an expensive signals package free of cost for traders that satisfy the minimum deposit requirements. Other brokers might also offer these signals free of cost for high-frequency traders that transact the desired amount of FX transactions on a monthly basis. You should always keep an eye out for these offers by signing up for periodic newsletters at popular trading signals review websites, or perform extensive research through online sources for finding any promotions that might help you to win a free signals service package at no cost. We recommend using a free signals service to supplement your own research, as it will help you to improve the chances of success tremendously. A word of caution, however, never trust any signals blindly and overleverage your account, as a single wrong trading call can wipe out your entire investment.
The Relationship Between Forex Trading Signals & Expert Advisors
Expert Advisors (EA) are automated trading bots that are programmed to trade on behalf of traders when the market conditions suit the conditions programmed into the EAs. Automated trading is a highly popular concept in the Forex market, which was further revolutionized by the wonderful MQ4 community of programmers for dedicated automated trading on the MetaTrader4 terminal. Automated trading is significantly different from manual trading using trading signals, but the basic concept remains the same. Both EAs and Forex trading signals allow traders to invest their money according to external recommendations that are designed by third-party service providers.
Similar to paid and free Forex signals, EAs are also available as free or paid programs. Several platform companies offer the chance to programmers to design and develop their EAs using an open source community that allows sharing of resources and programming knowhow. Therefore, as a trader, you can also opt for free or paid automated trading programs according to your convenience.
Some signals services providers also offer different EAs that allow subscribers to take advantage of their signals service without actually trading the markets. These EAs can be installed on their trading platforms for entirely automated trading according to the signals generated by the service provider. Automated trading eliminates the mistakes of any human error or other emotional factors, but it might not be suitable for traders that seek total control over their investments.
What Are The Precautions While Using Forex Trading Signals?
Using Forex signals can be a great way of improving your trading performance, but there are a few precautions that will allow you to avoid the pitfalls of erroneous trading calls. Here are a few guidelines that can keep you safe from bad signals:
Always supplement trading signals with your own research: Even though you might be tempted to trust the trading signals blindly, remember that even the best traders can make mistakes. If you do not agree with the recommendations provided by the signal service provider, ditch the signal and look for new trading opportunities. Subscribing to a signals service does not make it mandatory for you to open all the positions as recommended by the company.
Always keep your leverage to a minimum: Over-leveraging is one of the biggest risks in trading, which is particularly the case for traders that trade using others’ recommendations. Signal providers usually provide some insights into the acceptable trading leverage that is well-suited to their trading signals, but you may either increase or decrease the leverage according to your risk appetite. Once again, Forex trading signals companies are not in control of your account, and it is usually impossible to replicate their results on your account.
Risk only a small fraction of your account on each trade: You should conserve your trading capital to ensure that you can stay in the markets even after a massive losing streak or a significant drawdown. By risking only a small portion of your trading account, you are basically allowing your account to absorb the impacts of negative trading results, all the while allowing your account to take full advantage of all the positive results that you may enjoy over the long run. Money management is the key to having a successful FX trading strategy.
Follow the signal directions when it is time to exit the markets: If your signal provider asks you to exit your trade at a certain point, it is usually wise to follow their instructions. If you believe that they have made a wrong call, at least move your stop losses to make sure that you are covered for any losses, without affecting your equity drastically.
Never let your losses run by expecting a turnaround: You should allow your trades some breathing space for the markets to conform to your trading call, but if you find yourself losing too much, don’t be ashamed of quitting your trade and moving on to the next one. You should not expect your losses to turn into profits, as the market does not offer any compromises. Get out of the markets at the best possible time.
If you are facing consistent losses, switch to another reliable signal service provider: There are bound to be losing months, and extended periods of drawdowns should not be a reason for quitting an otherwise successful strategy. However, if you are no longer experiencing the kind of professionalism and accuracy from your trading signal service provider, you can consider an alternative, especially if you are paying for their services.
Demo Trade: It is vital for you to demo trade with a trading signals service for a few months before switching to your main account. You can even try out the signals services on a smaller micro account and ensure the accuracy of your signals before replicating the signals on your main trading account. You shouldn’t trust the performance of a signals service from the company’s performance results, as their results can vary tremendously in real-life trading conditions. Always keep your trading capital safe against all negative market influences.