How to Make Money Using Forex Signals

Players in the forex market often have to grapple with all sorts of different terminologies. If you are a newbie, you may not have a good understanding of the term ‘forex signals’. Yet, forex signals could make your trading easier and more profitable. No need to worry. In this article, it’s our intention to explain what forex signals are and their significance in forex trading. We will show you how to apply them and why they are necessary. In the end, you should be in a position to choose the best forex signals and use them when trading.
Forex signals for buying and selling
Forex signals help you make buying and selling decisions

What Are Forex Signals?

Forex signals are basically trade ideas meant to show the direction of the market in real-time. They are generated by human analysts, trading robot or trading software. Signals usually contain key information to help traders enter a solid trade on a given currency pair, while bearing in mind the time and price. They may include the type of position (sell or buy), stop loss, and take profit levels. Since they run in real-time,forex signals come with different notification methods including email,RSS, websites, Twitter or SMS. Apart from forex pairs, signals are available for cryptocurrencies, commodities, and indices.
 

Types of Forex Signals

There are two types of forex signals depending on their function and how they generally work. They include manual forex signals and automated forex signals. While each of these signal types have their own benefits, they work better when used at the same time. It is possible to buy both the manual and automatic signals online. The best are those that offer free trials. We discuss each one of them in greater detail below:

1. Manual Forex Signals

Manual forex signals involve a trader searching on his or her computer for signals to decide whether to sell or buy a given currency pair. As such, getting manual forex signals can take a long time sitting in front of a computer. Because of their nature, these kind of signals are mainly used in manual trading.
 
In their own unique way, this kind of signals are better, given the human ability to notice when things are moving awkwardly or unpredictably. It is, therefore, much easier to pull out of trades before things go really wrong. A trader is able to use his skills, experience, and intuition as opposed to programmed automated systems.

2. Automated Forex Signals

To access automated foreign exchange signals, all a trader needs to do is to command a computer software to look for certain signals. Here, the trader doesn’t have to apply himself or herself mentally and psychologically. It is up to the software to automatically interpret the options to pick (whether to sell or buy) a currency. If you are using an optimally-designed program, this will definitely work.
Use Forex Signals for Daily Trading
Use Forex Signals for Daily Trading
 
Apart from software that can be commanded by human beings, forex trading bots may also come in handy. The bots have the ability to process huge amounts of data within a very short time. Also, they make it possible for one to manage multiple currency pairs at the same time.
 
These computer systems have the ability of presenting all kinds of charts for the trader’s consumption on a 24/7 basis. Unlike humans who may get tired to follow up on the minute details, bots are unlikely to miss any important signals.

Types of Forex Signals Services

To reiterate, most traders (whether experienced or newbies) need help to succeed in the forex market. There are a number of forex signals service that remove the need for having to exercise your mind to make trading decisions. It could be anything from the human-generated manual forex signals to the automated variety. Regardless of the type of forex signals you are referring to, they are likely to be paid or free
services. We delve into that deeper.

1. Paid Forex Signals Services

Paid signal services could be generated through the efforts of a human analyst or those done by bots and computer systems. Additionally, paid signals may also be sourced from various systems or software working in tandem with bots of various types. As a trader, you can choose among any of these options.
 
Regardless of the forex signals services you choose, all of them have features that run across. Characteristically, most paid forex signals services
offer account management. You can access assistance with forex signal analysis together with supporting graphs for further interpretation. In addition to educational resources, most are likely to have a free trial period. You also get to interact with the provider in comments and special forums.
 
It is good to be careful when picking a paid provider, given that some provide unreliable and fake forex signals. To avoid losing your money unnecessarily, it is important to do some research before subscribing to a signals service.
paid forex signals
You may also use paid forex signals
Paid forex signals services may exist in any of the following forms:

Investor services

Since they are high-end in nature, investor services are expensive. They usually operates as investment house or fund management services.
Apart from having very high minimum requirements to join the service, they require to invest some money for a specified period so as to earn periodical returns. If you have something like $50,000 to invest, then this is the kind of service to subscribe to. Before you enroll for such a
service, pay close attention to the fees, returns, and any available guarantees.
 

Signals provider

If you are a retail trader, this is the kind of signals provider you may want to work with. They charge fees on a monthly, quarterly or performance-based. The amount will depend on the level of services offered. You will be able to get the signals from a dashboard including the sell or buy price. Additionally a signals provider can execute trades for you in a timely way. When looking for a signals provider, be careful to choose one with a proven track record with a clear indication of volatility.
Copy trading
The other name for copy trading is mirror trading or social trading. It allows you to copy the actions of the more successful traders and try to replicate their every moves in the hope of making a profit. This is not a free service, given that you have to pay a small fee for it. Based on the platform you are using, copy trading can be manual or virtually
hands-free. Once you have set aside the amount to invest, the trading platform will do the rest for you.

Are MQL Signals Any Good?

MQL signals are a form of copy trading available on the Meta Trader 4 (MT4)platform. With these signals, traders can copy trades made by FX signal
suppliers right there on the MT4 trading platform. In addition,experienced traders can share signals with other users inside the community.
 
Given that MT4 is the most widely used trading platform, these signals are accessible to all online traders. In each and every MT4 account, there is the tab ‘Signals’ which you can turn on after signing up to the MQL5 community. Every time you log into your MT4 account, you will get easy-to-use forex signals. You can follow these and use them when making trades.
saving time with forex signals
With forex signals, you save a lot of time
Since this is copy or social trading, it is necessary to get authorization before using the signals. Once that’s done, you can go to your trading account and make use of them. Unlike other sources, social trading makes it possible for traders to get accurate forex signals. Great savings are made in terms of fees and the risk diversified. MQL works very well if you have your own expert advisor.
 
Apart from having an expert advisor, you may opt to follow a trader who you consider experienced and trustworthy. On the MT4 platform, the decision to follow another trader does not mean you have surrendered the control of your account to someone else. In fact, the sign in credentials remain
your hands.
Since MQL signals are by their nature automated, they come with a number of benefits to the traders including the following:

1.Quick Building of Trading Strategy

There’s no need to waste a lot of time trying to build a trading strategy. Once you have picked a trader to follow, the trading platform will be able to ape every one of their actions on your behalf.

2.Saving Time

Traders save a great deal of time since they do not have to manually place trades and monitor happenings in different markets.

3.Risk Diversification

Ability to diversify risk more objectively. Through social trading, you can select a number of forex strategy providers. By diversifying strategy providers, you are able to spread out the risk.

4.Supplementary Strategies

You will have access to choose supplementary strategies in addition to your current Expert Advisor. All you have to do is pick any of the automated forex signals.

5. Saving on fees

A major advantage of social trading is that it costs less than the other paid-for money management services.

6.No Barriers to Entry

Limited barriers to entry. With this option you do not need to pay have a minimum amount in your account to start. For as long as you have a MT4 account, you can start out getting forex signals through social trading.

7.No paperwork

With social trading, you get to totally avoid boring
paperwork. As such, you don’t have to authorize anyone to sign on your behalf.

8.Firm Control on Your Account

Having firm control on your account. One thing traders should know about MQL accounts is that they are opened in the trader’s name. That means every trader have firm control on what happens with your account.

9.Protecting Traders

Traders are well protected. Once you have picked a trader to follow,you can choose the amount you want to place on their strategy. Where necessary, MT4 allows you to place a stop-loss on your account just in case the strategy doesn’t perform as expected.

10.Sharing With Other Traders

Once your strategies begin to work, you can share them with other traders on the MT4 trading platform. Just because social trading is open to anyone with an MT4 account can engage in social trading does not mean you pick just about any signals provider. It is important to assess a signals provider by carefully assessing their profile. To know if you are dealing with a professional or not, the following are some of the things to look at:
  • The signals provider has a real trading account.
  • Also consider the number of trades they have done so far. From their track record, you can know if the trader is worth emulating.

  • The trader should essentially have a minimal drawdown, preferably less than 30 percent.

  • Steady growth. A trader who has been in the business for the longest time should be able to show what they have done over the years. If the growth is drastic, the provider’s way of trading might be too risky to emulate.

  • It the signals provided are paid-for, then they are likely to be more authentic than the free ones.

What Are Free Forex Signals And How Do They Work?

In addition to the paid-for forex signals, there are free versions that you can take advantage of. Providers of free forex signals may send them via email, SMS, and posts in online forums. The signals state whether it’s intended for a long (buy) or short (sell) move. Together with the currency pair, the signals may also contain the price at which it is being offered.
Forex Factory
Forex Factory is a major player in the forex market
Some free forex signals may feature the order type such as limit order (LO), pending order (PO), and market order (MO). However, these signals are not uniform and may vary depending on the provider and the broker’s platform. Some may have two abbreviations and quotations after the starting line. For example, BUY EUR/USD @ 1.2565 and SL @ 1.2545, TP @ 1.2595, which essentially implies the stop-loss (SP) is 20 pips away and TP 30 pips away from the price.
There are some forex signals which have the abbreviation TS at the end. However, only a few brokers and platforms support orders of this kind.
In forex trading, TS is the short form of trailing stop. Even though a nice feature, not all traders can use trailing stops. What it does is to give traders greater flexibility.

Sources of Free Forex Signals

Did you know that you can source free FX signals online? A simple Google search will reveal numerous websites dedicated to this kind of service. If you check on social media, you can find lots of shared information on the available signals. No matter where you find them, these signals are likely to be sent out by traders, affiliates, and scammers.

1. Traders

There are a number of forex traders who have no problem sharing their ideas of great trading strategies with their acquaintances and friends. Most of them want to build a reputation as a good trader, help other people, and enable trading platforms to support newbie traders. One of the most popular forums where traders share free FX signals is Forex Factory. After doing an analysis on their own, traders can get reliable trading strategies, which they can then share with others.

2. Affiliates

Although not as reliable and trustworthy as traders, affiliates are another source of free forex trading signals. To get signals, all you need to do is to open a trading account with a broker via an affiliate link. While the affiliates will keep making a commission on all your trades, the FX signals will be available free of charge. Since affiliates may have no time to trade and at the same time dabbling in an affiliate program, they aren’t very reliable. So, you shouldn’t fully trust signals from affiliates even though they are better than having to come up with your own strategies. If they have a demo account, you can use it to test the free FX trading signals.

3. Scammers

Apart from being very unreliable, scammers only want to make affiliate commissions from traders. Some only want you to buy “free” signals. They are likely to entice you with a few free signals so that you can start purchasing premium signals. Once you sign up for the free FX signals, you will keep receiving additional signals for sale. Through their trickery, scammers may provide ‘buy’ orders to some and ‘sell’
orders to others. Once the scammer splits the audience into two, he or she is assured of making a profit from one group even if the other is making losses.

Should You Or Should You Not Use Free FX Signals?

If you are a new trader, the temptation of using any FX signals you find online can be overwhelming. However, you shouldn’t pick just any signals. Online forex trading works well when you get to master how it works. But they will take you long hours and lots of hard work. The fact that you have the most profitable FX signals doesn’t mean you are becoming a master of online forex trading. What’s happening is that you are fully dependent on another person.
Of course, you will get returns albeit short-lived. When you come to think of it, this is not the same as charting your own long-term journey in forex trading. By performing the trades yourself, you are by extension taking time to learn the workings of the forex market. If you must get free FX signals online, you are better off looking in forums. It is best to work with traders who are experienced and have a proven trading history of more than 6 months.
Don’t trust anyone that promises results without showing what they have done previously. A trusted signals provider has nothing to hide and will be very glad to share his or her history with you. Besides, it is possible to verify signals by checking out the trader’s history through their MT4 account. You can find such information on forums such as MyFXBooks.

How to Pick the Best Forex Trading Signals Provider

Given the many options available, settling on one FX signals provider can be a daunting task. That’s why traders are advised to take time and research certain aspects of the signals provider. The following are some of the things you should look out for:

1. The profitability of the Signals

If the signals have no profit potential, why should you use them? Don’t be fooled by the claims made by certain traders about catching thousands of pips in a month. Check out their track record. Not that profits can be guaranteed. Rather, they are risky ventures which may result in losses. According to industry experts, the higher the reward-to-risk ratio, the more profitable it is.

2. Verified Trading Results

A trustworthy signals provider should have no problem showing you his or her verified results from the previous trading. It’s only with a verified track record that you will be able to know whether the trader’s claimed performance is real. These results should be verified by an entity like ForexFactory, FX Blue, MyFXBook, and so on.

3. Signals with Charts and Comments

A good provider of forex signals should include charts and comments. It is not enough to send the entry price, take-profit level, and stop-loss level. Traders need high-quality forex trading signals complete with charts and comments so as to be sure why they are taking a short or long position. Because of the way this information gives insight into the workings of the market, it is easier for you to learn your ropes.

4. Availability of a Free Trial

If the signals provider is transparent, he or she should have the option of a free trial for traders. During the free trial period, traders get the opportunity to check out the quality of the forex signals. After that, you can choose if you want to go ahead with the subscription. It doesn’t matter how long the free trial period is. What’s important is that they help you know the signals provider better.

5. Whether You Use the Same Broker

An important consideration is that you and the signals provider must of necessity be trading through the same broker. With that, you won’t have to worry about the execution speed or your profits being affected by the spreads and slippage. When you use different brokers, you are likely not to hit your targets.

6. Whether You Need Automated Signals

Whether you pick a signals provider who emails you the signals or one whose processes are fully automated is a personal choice. If you have an MT4 trading account, you can make use of Expert Advisors, which work automatically. Despite the type of signals you choose, stay fully in control of the risks and possible equity.

Conclusion

Clearly, forex trading signals are important for both the seasoned and newbie traders. You can get these signals from paid-for providers as well as the free ones. Among the paid ones, we have those which require you to open an account with a high minimum balance. The rest are nearly free.
If you must use forex signals, know where to find them. But as you use them, also learn the intricacies of forex trading. Nothing is as fulfilling as being able to do some things on your own.

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