Forex Trading Easier Way 3
Easier Way #3 – Forex Signals
If you want more control, a forex signals service may be the solution. Forex signals can be a good source of information if you do not have the time, experience or inclination to analyze the markets for yourself but do not want to trust your trading to a robot.
You usually have to pay to subscribe to a forex signal service. Fees may be charged per month or per signal. Some companies offer a trial period where you can test their service on a demo account. If not, you will be paying out money from the start so to have a chance of making profits, you need to be trading at a level where you can expect to make more money from the signals than they are costing you.
The first thing that most people look at when considering forex trading signal providers is their recent results. This can be a mistake. Recent results are not as important as performance over the long term. Do not sign up with a company who make a huge deal of last month’s amazing results but will not tell you what their signals have made over a full year. Also remember that when they show their profits, they do not have to take account of the cost of the signal service itself. If you have a very small account balance and lot size, you may not be able to cover the cost even if the signals themselves are profitable.
Also keep in mind that losses are not always the fault of the information. Even if you are receiving profitable signals, you must also have a clear plan for managing your funds. If you have a good run of profitable signals it is very easy to start thinking they will always be right and take bigger risks than you should, so that an unexpected loss has a big impact. Most companies who offer forex signals will send them to you by email and/or SMS text message. It’s best to get both, although SMS alone may be enough. If you have mobile broadband on a laptop you can respond to a signal wherever you are. If not, keep in mind you may not always be able to open or (more importantly) close a trade at the best time.
Remember that forex is a 24 hour market. You could be woken in the middle of night by your cell phone bleeping with an SMS that you need to act on right away. Think about whether you (and anyone who shares your bedroom) are OK with that before you sign up.
Next Page: 5 Golden Tips For Successful Forex Trading