One of the most popular ways of
trading is by following "signals". If you've ever heard the term
"Forex Signals" but wanted to know more about its pros and cons, and
whether it is suitable for you or not, this article is for you.
What is a signal service?
A Signal Service provides alerts on
trading opportunities. For example, a professional trader sits at his desk,
trading his account (or his company or hedge fund account). Whenever the trader
enters the market, he also sends an alert to his subscribers, giving them the
opportunity to enter the same trades as him. Some services also provide an
automated robot, sometimes called a Trade Copier or a Trade Cloner. This robot
will execute the same trade on the client's account, so clients don't need to
actually go to their computer and execute the signals manually. Such a service
is "ForexSignalsClub.com".
Why should I use a signal service?
Whether you a new or experienced
trader, there are signal services out there that will contribute to your
profits or set you on the right track to trading success.
For beginners: trading alone
can be confusing and difficult. Like any other profession, you will not see
success over night (despite what some brokers might try to lure you into
believing…) So, on your first steps in this exciting but dangerous world,
services such as ForexSignalsClub.com, can take you hand in hand, the way real
professionals trade. Plus, you have a chance to copy the trades of a pro into
your own account, so you start trading on the right foot.
A signal service is also suitable
for people who do not have the time to sit all day in front of the computer,
looking for trades. Being subscribed to a signal service means there's a pro
trader sitting and looking for trades on your behalf. Saves a lot of time and
headaches, plus of course the results should be better, as you're having a
highly experienced professional working for you.
For veteran traders: it's a
real opportunity to hone your skills, and provide an additional source of
profitable trades to diversify your "portfolio" of strategies. It is
also an opportunity to join a community of like minded traders.
What are the disadvantages and
problems with signal services?
Here are the disadvantages and
common issues with signal services, which require your attention and caution:
Hidden agendas: some brokers provide
free signals. You've got to ask yourself why would someone offer free signals
if they are serious and profitable. The answer in most cases is that they have
a hidden motive – to push you to trade more. The equation is simple: the more
signals they send you, the more trades you make, and the more commissions they
earn. That's why their main interested is sending as many signals as possible,
not as good and profitable signals as possible. These kinds of freebie signals
have made a bad name for the world of signals, but luckily there are a few rare
paid signals providers who do a good job.
Time constraints: many signal
services require you to be near a computer most of the day, so you can
immediately enter the market whenever you get a signal. However, this issue has
been overcome by using what's called a "Trade Copier", which is an
automated robot that receives its trading commands directly from the signals
service trader.
Good signals come from good traders:
Unfortunately, the Forex industry is full of scams and dishonest vendors.
Calling yourself a trader and providing signals is easy, but providing signals
which actually provide profits is of course a different story. The statistics
are that 95% of traders lose money in Forex. This applies to signal providers
as well. So, your mission is to find one of those 5% of signal providers who
actually make money in Forex.
