By Cedric Welsch
The forex market is complex and volatile. Both beginning and advanced traders benefit from forex signals. Signals are suggested trades based on set parameters, like entry price, stop loss, or take profit.
A forex signal service is not a managed account. It is up to the end user to manage parameters and to make the actual trades. The signal service provides traders with information and suggestions. The user analyzes the numbers and acts. Providers usually stick to one or two pairs of currency. Different services also cater to different trading types. A long-term trader, for instance, might choose a different signal provider from a day trader.
Signals are delivered in a variety of ways. They can be delivered through a chat room or forum. They can also be delivered through email, text message, or Tweet. Some providers even send them through a specially customized pager.
A good program fits the needs of the user. First, it fits the user’s budget. Services can either be free, available through a subscription, or available as a one-time purchase. Second, it alerts users the right way, at the right time. If a user works full-time, for instance, he or she may choose email alerts. The alert can come directly to the user’s inbox at work, allowing the user to act on trades during the day. Good programs always come with a trial period or a money-back guarantee.
Before committing to a service, it’s important to know some facts. Most importantly, know the track record of the expert trader or the robot who is generating the alerts. Know this before handing over any money for a service. Also, know how much can be risked per trade. For long-term success, do not risk more than three percent of the account balance on any trade.
Signal services are either automated or deployed by a live trader. Automated services are best for beginners. They are also good for people who want to be in the forex market but do not have a lot of time to commit to analysis. With minimal effort, they keep traders up-to-date with the market and show any interesting deals that are available.
Live trader services are good for advanced traders. Live signals are sent by a broker or by another trading expert. Many times, these individuals operate within a chat room or forum. This allows traders to watch them make trades in real time.
Low-maintenance doesn’t mean no-maintenance. Users should still follow market events and indicators. They should also adjust their stop loss and take profit settings daily. However, for the most part, forex signals give investors the chance to make maximum money with minimal effort.
It is about time that beginning traders do forex research in a way that would much professionals.
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