Have you ever received a quote or seen a trading signal ad? No need to worry, forex signal service is not a scam. In fact, these services can help you make a profit if you understand the meaning of forex signals and how to use them.
Understanding Forex Signals
Forex Signals is an automated market analysis and monitoring service offered by independent Forex brokers or analysts, paid or free. Generally, they provide data such as buy/sell orders at certain prices, along with Stop Loss and Take Profit positions based on technical analysis of the related pair. After seeing the results of monitoring these Forex signals, you can decide to follow the OP’s advice (open positions) according to their guidelines or ignore them.
The best Forex signal providers can provide signals to open positions on various pairs/assets on-demand or available options. As soon as a trading opportunity arises from the target pair, the Forex signal provider will immediately inform it directly to your email, SMA, or through your trading terminal. The price for subscribing to this Forex signal service varies, ranging from free to hundreds of dollars per month. The benefits are great too. With Forex signals, you no longer need to spend hours monitoring Forex price movements. In other words, Forex signal services can help save time and speed up the trading decision-making process.
Forex Signal Service Usage Suggestions
First, using a Forex signal service doesn’t necessarily mean you don’t need analysis. Even though the signal provided is complete information, it is necessary to cross-check the correctness and accuracy of the Forex signal with your own trading strategy system.
Second, if planning to buy a signal service, make sure that they provide historical data. It is important for you to be able to check the track record of Forex signalers, whether the drawdown was too high in the past or continued to profit consistently. This track record should not only be an image that can be edited easily but a running record, as presented by MQL5 or Myfxbook.
Remember, Forex signal services are also not always good and suitable for every trader. You should not rely too much on signal services and rely on them as good luck. Be sure not to anticipate Forex riches instantly, but instead view the service as an alternative to assisting the trading process.
Fundamental analysts base their trading decisions on economic data and related news, which includes analysis of long-term interest rates, central bank policy, inflation, surveys of market sentiment, and employment reports.
Trading signal types:
1. Auto-executed signals and non-auto-executed signals
For those of you who want to take advantage of trading with results executed automatically, then you need forex signals. Where to install the settings yourself based on the instructions and then you can hire a VPS service. The VPS plays a role in ensuring the computer remains online for 24 hours. Trading signals will be executed directly on the trading platform, so traders can simply leave the computer on and monitor them occasionally.
2. Signals from Software Installed on Trader’s Computers and Signals Through Third Parties
The signals sent through this software are referred to as Expert Advisors or EAs. There are several EAs that are available for free on the internet, but there are also some that offer a certain price. You can also create your own EA by using the EA, MQL5, and MQL44 generator.
Please note, that basically EA is formed from the results of technical analysis. So, don’t be surprised if EA ignores a lot of fundamental factors. Therefore, there are a number of forex brokers who also prohibit the use of this EA with the aim of not disturbing the system at certain times.
What must be understood, forex signal services are also not always good and suitable for every trader. You should not rely too much on signal services and rely on them as good luck. Be sure not to anticipate instant forex wealth, but instead view the service as an alternative in helping the trading process.