By Daniel Shaw
Forex trading signals are the signals for buying and selling of a foreign currency. They show the time and the price level when opening and/or closing a trading position has the biggest potential for making profit. Signals can be a great help for the newbie traders who know the basics of trading but don’t have their own trading strategy yet. Companies that provide trading signals usually have a professionally developed trading system which according to these companies is effective and must be profitable. The cost of such trading signals is usually not very high and returns to the trader who uses these signals.
How can we check if the trading signals are worth their money? The best indicator is the opinion of people who you trust. It might be your friends, colleagues, relatives who have already used those trading signals and can share you their results. If you personally don’t know people who have already used the signals, you can look around and make your own research before subscribing to the certain signal services. As a rule the authors of the trading signals usually let their customers to get familiar with the history of trading transaction made according to their signals on their own trading accounts. With the help of these statistics you can judge the effectiveness of the trading signals provided. If the signals provider doesn’t offer the statistics of trading with its signals, it is better if you look for another signals provider. There are hundreds of signal services on the web today.
Usually the Forex trading signals providers do not guarantee the effectiveness of their product. The same as the money management servicers don’t offer the return of the capital in case of the losses. In both cases the risk lies on yourself as an investor. The best way to test the effectiveness of Forex signals is to make a short term subscription to them and evaluate their effectiveness on your own. Of course, you can waste some money if the performance is not good. More than that some signals providers require the minimum subscription for more than a month, which is embarrassing if your goal is just to try them out. In any case you will have to find the way to solve it and test the signals before you use them for trading with your capital.
Subscribing to Forex trading signals is very similar to the money management. In both cases you rely on the professionals, rather than analyze the market and execute positions on your own. In the first case you pay a fixed amount for the subscription and independently make the transactions through the platform of your online broker based on the received signal. In the second case, you trust to someone else to do the transactions for you and manage your capital, but you share with them a part of the profits made in your trading account. In both cases you take all risk of loss if the situation in the Forex market will unfavorable to you.
Daniel Shaw is a proud author of many popular materials about Forex trading. Visit his portal Singapore Trader to find more information about Forex Trading in Singapore and Mustafa Forex.