A forex signal is a suggestion for entering a trade on a currency pair, usually at a specific price and time. The signal is generated either by a human analyst or an automated forex robot supplied to a subscriber of the forex signal service. Due to the timely nature of signals, they are usually communicated via email, website, sms, rss, tweet or other relatively immediate method. One of the most easiest and fastest way to start seeing profits from trading the Forex markets is to follow the trade signals of an already profitable mt4 Indicator or from a successful trader. Learning to trade on your own can be very frustrating, time consuming and expensive… and most people who try, never become consistently profitable traders. Forex signals are the solution.
And while you do not have to spend years learning how to trade on your own, you do have to have some fundamental understanding of how to use Forex signals properly and what to expect. This sarticle is designed to provide the necessary knowledge and experience you need to succeed using Forex signals.
Firstly, Look For Forex Signals You Can Actually Trade Or Copy Accurately.There are two common ways to use Forex signals. You can either trade them MANUALLY or you can trade them on AUTOPILOT using a Trade Copier. We will address both ways of using Forex signals and the challenges you’ll face with each so you can make an informed decision on how you want to trade the signals.
Manual Forex Signals:
Our flagship MT4 indicators provide signals on your MT4 platform. When you are going to trade signals manually, you need to be available to place and manage trades at the same time. The problem is you have to be available to trade at any time, day or night. You need to glued to your smart phone waiting for a SMS messages or you computer waiting for an email alert. Then you must have your trade platforms handy so you can perform the tasks as quickly as possible. Our best mt4 indicators offer the possibility to trade with the trend or to trade reversals, with each opportunity giving highly solid forex signals.
Automated Forex Signals:
An obvious solution to the problem of not being able to trade the signals manually is to use a Trade Copier. A trade copier lets you get the signals placed and managed on your trading account automatically. When the signal provider does something on their trading platform, it is copied to your trading platform automatically. But while this sounds like to perfect solution, there are some challenges as well. As fate would have it, the challenges with automated trading are very similar to the challenges with manual trading. It has to do with the kind of trading strategy behind the signals and the frequency of the trading. Basically, it is very hard to use a trade copier with scalping or active day trading signals.
How to use Forex Signals:
When the signal provider performs an action on their platform, there is a slight delay in the trade copy process. This small delay can lead to what is called “slippage”. Slippage is when you try to enter or close a trade at one price, but due to the delay in the trade copying or trading platform, the actual price the trade is entered or closed is different. (Price “slipped” from the price you wanted to a slightly different price).
If you are following a scalping strategy or active day trading strategy, even slippage of a few pips can be enough to dramatically change your results. Imagine the signal provider closed a trade with 4 pips profit, but due to slippage you only get 2 pips. That is a 50% difference in profits. And this can really add up over time… and even make the signals unprofitable for the signals follower while profitable for the signals provider.
Even when using a trade copier, you need to pay attention to the trading system and frequency of the trading. Scalping and active day trading signals tend to get in and out of the market very quickly, and with lower pip numbers. Following a system like this with a trade copier means slippage can have a dramatic effect on your profits compared to the signals provider.Stick with swing trading systems or other signals that go after a decent amount of pips per trade. Remember, if you cannot get similar results to the Forex signals provider, it does notmatter how profitable the Forex signals appear to be. Only YOUR results matter. This is why it is important to stick with signals that you can actually trade properly, or use a Trade Copier with a system that allows you to trade the signals accurately.
If you want to trade manually, visualize yourself trading the signals and make sure you can actually trade the signals in real life. If manual trading is going to be difficult or require major lifestyle changes, you most likely will not stick with the trading for the long term. Make sure you can easily trade the signals for the highest probability of success. (For Forex signals you can trade in less than 10 minutes a day, go to: Forex Investing Live). If you want to trade on autopilot using a trade copier, check the trading statistics.
1. Is the system behind the trading a scalping or active day trading system that takes a lot of tradesduring the day?
2. Are the pip numbers on closed trades below 10-20 pips? In either of these cases, if the answer is “yes”, this might not be a system that is suitable for accurate trade copying. (For Forex signals that can be copied with a trade copier accurately, and that we use to trade our LIVE accounts, go to: Forex Auto Trade Signals).