How to choose Forex signal service

On February 11, 2013 | By | In Forex tips

Forex investment as any other money making activity is time consuming and requires strong nerves and deep analysis. As a rule, just a few professional investors possess those particular qualities and have enough time to stare cold-bloodedly all day long at the screen.

 

If you have a day job from 8 to 5 and you come home in the evening it’s another story. After coming home and paying duties to your family (playing with kids, sharing your time with your spouse, etc) the last thing on your mind is making an “analysis – paralysis” of a market and trying to execute some orders when the market is vaguely moving anywhere. There are some strong willed people who would still do that after they have spent some time with their family, but it requires much effort and time (usually your sleep time).

 

If you find it difficult to analyze the forex market, you can choose forex signal services which are abundantly advertised in the internet. You could even tie your trading platform with some profitable systems and everything else will be done automatically.

 

All you have to do is sign up to some signal providing service and the currency trading tips will start coming to your email account right away. Some of those services don’t charge anything and require only your email address. Trade signals can be based on a manual trading which is done by a real broker or automatic trading which is carried out either by script implemented in the Metatrader platform, or by more complex software.

 

You can also use charged signals. The fee amount varies and depends on the provider of forex signals. Some require 100 dollars per month, others charge 200 or even more (500 – 1000) and there are also those who modestly hint to pay as little as 10 or less dollars. We also cannot rule out those who diversify the fee for their trade signals. For instance, you can pay 100 USD for receiving plain signals in real time and you can pay 50 dollars extra for additional teaching and forex trading strategy analysis, totaling 150 per month. Despite all the popularity of free or charged forex signals, there are still some questions to be answered.

 

First, if those forex systems are good, why do they advertise them or even sell them? If you’re the best trader ever – why do you need someone, who pays you 100 $ a month, when you are making thousands or millions? Well there are few answers to that:

 

  1. There are many good traders, who do not possess big forex funds or have just a few hundred bucks in their pockets. They are trading in forex demo account versions or in real accounts with small amount of money and with their profitable system, proven in the long run, they need some real money to make. The subscription service is one way to make some money and invest it further in forex. If a service is free – then they are advertising their trading system with hopes of making it charged in the future.
  2. There are forex traders who have been participating in this business for a long time and have developed some strong and profitable systems. Forex signals subscription service is one of their businesses branch, apart from forex trading. They have large funds and are making constant profits.
  3. Trading along with other people who follow your signals requires more concentration and responsibility. This way signal providers try to develop their trading system and to improve it. They can also receive some remarks from their clients, which also help to perfect their trading systems. That’s what I heard from one forex trader. It’s up to you to believe it or not.
  4. Unsuccessful forex traders who lost everything and are trying to earn some money this way.
  5. Resellers – subscribers to some profitable system service and reselling the signals to traders or investors.
  6. Other unmentioned reasons.

How to identify profitable, advanced, reliable, in other words the best forex signals service that could bring you constant profits? You could surf the internet and try to find as many comments on a certain trader or signal provider as you can, concerning his trading history, largest profits, largest draw downs, stop losses, leverage uses and so on. I would also recommend visiting forex scam forums, like forexpeacearmy.com – people would willingly share the information if they had experienced margin calls following some signal provider.

 

There are really good forex systems out there; you just have to pay attention to the details, like the starting capital, leverage used, trading strategy, money management and the age of a system. The greater is the number of trading days – the better. I suggest avoiding systems with less than 2 months age offering 1000% per month, because they are most probably fake or super risky and they usually don’t last long.




Comments are closed.