Trading signals are an informational notification indicating the point of entry into a trade and exit from it to a particular asset. Forex signals are used not only by beginners but also by experienced traders to confirm their own analysis results. Forex trading signals are developed by experienced analysts based on fundamental and technical analysis. Paid distribution of them on the Internet is practiced. Today, many brokerage companies offer users access to the automatic sending of signals on a paid or free basis.
Features of trading by trading signals
Forex signals, like any other inside, cannot be 100% correct (even with a paid subscription). Depending on the source, the accuracy is from 60%, which allows you to level out risks and get income with the right approach to trading in compliance with the recommendations of the information provider.
A similar automation model is also relevant for those who do not have the opportunity to independently engage in analytics. After all, Forex signals indicate the moments of entering and exiting a trade. They also contain information regarding the asset to which the signal applies. Often, information is presented in full detail, and a screenshot from the chart is added there, which confirms the forecast. For safety reasons, Stop Loss and Take Profit levels are indicated.
One or another source usually publishes from one to five to six forecasts per trading day.
Types of trading signals
There are several types of forex trading signals:
- Manual application;
Manual use of signals is carried out by opening orders by a trader independently, through a trading terminal. Information from the source is carried out through any communication channel, be it a social network, SMS notification, or e-mail. The advantage of this type of information is the ability to select potentially attractive and most promising signals for each trader separately.
Above, we wrote that several signals for different financial instruments can be received from the source in one day. And the user does not have to use all the forecasts – it may simply not be enough for the deposit reserves.
Information for manual use also has a significant drawback – the need for their timely application.
For example, a forecast can be sent to a user on a particular device at the same time, and a trader can see and read it later when the signal is no longer relevant. Therefore, when subscribing to simple informing with forecasts, you will have to constantly monitor the presence of signals and use them at a certain time on your own (at the moments of opening and closing, you must be present near the trading terminal). Another drawback is the risks associated with a possible disconnection of access to the Network. If your Internet signal disappears (for example, electricity goes out or the provider has a technical failure), then the deal will not close on its own without using a VPS server and without a set Take Profit level. In manual trades, you can also use pending order opening to get exactly at the specified asset value.
Automatic signals are configured directly through a broker or in a trading terminal. They are characterized by the opening and closing of transactions without user intervention. In this case, you need access to the Network or the use of a VPS server.
At the same time, the user does not have to worry about choosing the volume of transactions, all parameters are configured directly through the trading terminal or the software used.
This or that type of signal can be paid for or free. Paid mailings can cost anywhere from $ 5 to $ 20 per month. It is important to purchase them if you regularly trade and can “recapture” their value in a few trading days.
How to get Forex trading signals for free?
Forex trading signals can be obtained for free from several sources:
Brokers’ sites that offer a mailing function for users and clients (direct subscription is made);
Telegram bots, which can be found on specialized portals for traders;
Forex-related portals, where you can order a newsletter;
Third-party programs that need to be downloaded and installed on your computer.
Free signals can also be published online on certain sites. You can bookmark them and use the information as needed. But online trading signals also have drawbacks. They are usually published for a large audience, and their accuracy does not always exceed even 60%.
Be careful! Free and paid signals are best used if you can trust their source. Choose the official websites of brokers or well-known portals with a large audience. One-page websites and individuals cannot act as providers of insider information and it is very important for a beginner not to fall for the trick of scammers.
Who can act as a signalman:
- An individual (usually a trader with a long experience of work or an active expert in the field of finance);
- Brokerage company or broker analytical department;
- Telegram bot (the source may not be indicated for certain);
- Software (by means of algorithms and indicators, the program can generate signals on its own).
