Forex trading signals aid forex traders from across the world when it comes to making the right decisions regarding their trades. Most of not all forex traders see these as the most critical tool that they can use when it comes to improving their investment portfolio.
So, just about every trader today uses these signals. That said there are many different types of forex signals systems. While almost all of these services are free, some are better than others. Ideally, you’ll want to use signals that include Stop Loss and Take Profit configurations.
If you are just starting out in the forex trading industry, you might want to hone your skills first with a demo account before buying signals. At FX Leaders we provide forex traders with advanced and high-quality signals at no cost.
Traders usually receive the signals they sign-up for via their email, an SMS to their phone or any other means that they think works best. All of this makes it easier to track trades and also ensures that you don’t miss excellent selling/buying opportunities either because they went unnoticed or because you were too late to act.
Even though using signals have become an integral part of a modern-day forex trader’s set of tools you are still encouraged first to verify if the system can be trusted before you end up making an expensive financial commitment to it.
While the signals may be free, trading is not free, but by using a demo account, you can test the waters and see if its possible to make money without risking your wallet. After you’ve tried it a couple of times and feel comfortable using your money you can then start trading with a real account.
It is essential to bear in mind that you can’t use signals for all types of trading strategies. Take scalping for instance which is a method that’s not compatible with using a signals service because the signal would have already have expired by the time you’ve reacted to it. When you’re using signals you need to pick trades with extended time frames as that’s where you’ll make more money and have a better win rate.
How The FX Signals system work?
Now every Forex signals system that you come across is unique in its own way in the sense that it relies on its own set of market analysis tools. That said these signals can be categorized into two main groups.
The first group of signals is generated based on a technical analysis of the market which includes present and past performance information with price trends. The second group is mainly based on current events and how these events will end up affecting the prices over the long and short-term.
There are also some signals that are generated after a thorough computer analysis of the market. These signals are usually automated. The system is taught by an experienced trader how the different markets work and react to various events after which the system starts producing the signals on its own.
The upside to this type of signals system is that it entirely removes human psychology from the equation which can and does affect their judgment consequently resulting in the wrong decision. But the downside to these signals is that there is no human judgment involved, and you’ll have to bear with a computer’s inflexibility.
Signals are based on the regular study by trading analysts who are just as big a part of the decision making process as computers. Their decisions are fed into the system and then turned into the buy/sell signals generated.
Our signals are based on technical indicators followed closely by our resident experts who along with fundamental analysis of trends offer the most accurate signals. Technical indicators mainly favored by our analysts include ’Fibonacci Levels,’ ’Breakouts,’ ’Support and Resistance Levels,’ ’2 Moving Averages’, ’Stochastic Lines,’ and ’Bollinger Bands.’
The most challenging currency pairs for our analysts include:
All signals systems are at some level flawed which means that they are not 100% accurate all of the time. So, it’s best to restrict your use of these signals as a tool to improve your win ratio. However, relying on them entirely is not a good idea as they are one of the many tools in your basket which should be a part of any trader’s toolkit.