Signals, trade
recommendations made by designated providers, however, have made Forex
trading less frustrating. The powerful tool has continued to birth more
successful traders every day.
Here
is an introduction to them and to the pros and cons of their use.
What
Forex Signals Are?
Forex signals are
trade recommendations suggested by financial
news websites, brokers, and specific designated companies. They
are sent out to their users via SMS, email, pop-ups, tweets, and messages via
social media accounts.
They
can be either manual or automated. When
they are developed by professional traders or market experts and analysts, they
are known as manual signals. On
the other hand, automated Forex signals are generated by software and robot,
and are instantly executed on the trading platforms of their subscribers.
While
the use of Forex signals is highly encouraged, it is important, however,
that you are aware of both their pros and cons.
Pros
· Forex
signals simplify the trading process
Forex
signals help to simplify the trading process. Arguably, this is their most
significant advantage that has endeared them to most traders. A Forex signal
service subscriber does not have to analyse the market himself. Instead, the
signal provider does that and feeds him with potentially profitable setups. His
is just to trade!
Using
a signal service, indeed, makes trading easy. It is time and energy saving. And
you can use the time and energy you would have spent to decipher market
direction on other activities that are important to you.
· They
help to limit risk
If
you are looking for a way to limit your risk in the Forex market, a signal
service might be helpful. A standard signal would come with essential details
such as the stop-loss and take profit
price.
Hence,
signals would tell you the price to enter a trade and the price at which you
should pull out. What is more, is that signals also include stop-loss orders appropriate
for each of the trades you take.
You
see, perhaps, there is no tool that combine both risk and money management
as good as signals do.
· They
improve profitability
Forex
traders adopt the use of signals principally because they help to improve their
profitability. The ugly fact is that most Forex traders lose. Then situation is
so pathetic that in many quarters, making money in the Forex market is believed
to be a wild goose chase.
It
does not have to be so. And signals, indeed, have proved that it really does
not have to be so. Now, a quality signal service can give you a winning rate of
up to 70%. That is, with a good signal service, you can win in the Forex market.
· They
can help you grow your account
If
you are a newbie Forex trader who really wants to grow his account, you should
consider using a signal service. A standard signal service, with a modest
winning rate, can do the magic for you.
When
you get it, all you will have to do is to relax, and just place the trades it
recommends. This works whether you just want to avoid beginner's risk or you
are rather focused on building wealth in the Forex market over time.
Cons
Forex
signals have their cons, too. Here are some of them.
· You
can fall prey to scams
If
care is not taken, you can fall prey to scam. There are many fraudulent Forex signal
providers. These unscrupulous businesses seek to strip frustrated traders of
their money, instead of giving them real value for their money.
Therefore,
you should be careful. Do your research. Ascertain the profitability of the
signals of the provider you want to use. Also, check its authenticity. Is it a
scam or not? Find out by checking out for reviews by its users, current and
old.
· Forex
signals can be expensive to use
Using
a Forex signal service, comes at a price. Although there are free ones,
research has shown that free signals are usually substandard. Therefore, if you
want quality, you will have to shell some cash.
It
is a game of numbers. Can the signal provider make you far more than the amount
you will pay for its signals? To answer this, research its track record. How
many pips does it clinch per month? Of the trades it recommends per day, how
many win?
If
the signal service will not give you substantial returns, needless to say, it
will not be worthy of use.
· They
can make you dependent
Perhaps,
here is the most disturbing reason why the use of Forex signals might not be advisable.
Forex signals can easily make their subscribers dependent on them.
So,
those users might not see any urgent need to learn to trade by themselves.
Their dependence on using signals will get in the way of their becoming
professional, expert traders in their own right.
You
should work against this. Your ultimate goal should be to become a well-skilled
Forex trader yourself. When you become one, you will be able to eliminate
third-party influence from your trades. Only then will you be completely
objective about your knowledge and skills and the trades you take based on
them.
Nevertheless,
as a newbie Forex trader, the odds are against you. To tilt them in your
favour, you might want to consider using a signal service. 1000pip Builder is
the one you need to protect yourself against beginner's loss and on your
journey towards becoming a consistently profitable trader.
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