Forex Trading Signals – Forex Losses or Forex Profit?

I have tried and tested countless systems of forex signals in my day and have had some great, some good and some downright awful results with them.  If you regularly read this blog you will know that I would always advocate for you to know the market that you are trading in and learn how to do it for yourself, this means making your own decisions about where and when to place your trades.  By relying on a forex signal provider you are simply removing these decisions from yourself and placing them with an unknown human, possibly on the other side of the planet and no way to find out what knowledge of the forex market that this person has or what information they are basing their trading signals on.

However I understand that not everyone has the time, patience, competence and willingness to do what needs to be done to master this tricky, risky market and that the forex profits to be had are of too large a quantity for those who do well to ignore.  If you do choose to lean on forex signals to provide you with your trades, be sure to do your research before you sign up to any signal provider.  I scream this at you over and over again in my posts, to make sure you do your research!!  Most forex traders have not got an infinite pot to trade with so be sure to protect yours as best you can and don’t whittle your money away on signal providers with nothing to show for it in the end.

Trading signals are either buy or sell commands which are sent to you from an outside source.  You will follow the signal providers based on their entry and exit levels, trailing stops and stop losses.  Most signal providers will work with the big six (USD/EUR, EUR/GBP, USD/JPY, AUD/USD, USD/CHF, USD/GPB) and will send you signals to trade within those pairs.  You do not have to accept the trades and nor do you have to stick rigidly with their stop losses or take profits.  However I would advise that if you do not know what you are doing, take the advice with a pinch of salt, do not trade what you cannot afford to lose, pick one or two pairs within the information sent to you and trade those two consistently – get to know the pairs.  If you think a trade is riskier than you are happy with, do not place the trade, there is no one holding a gun to your head and you must do what you feel comfortable with.

Many forex signal providers will send you an email at the end of each day (typically at the end of the New York Session) and will advise you on the various trade entry levels for the next days’ trading.  Most signal providers will advise that you trade during the London and New York session as these are the sessions where the market is more volatile and you are more likely to make forex profits.  The Japanese session is typically the most stable of the three and unless there is a release of prolific market news you will be unlikely to see massive gains during this session.

My advice to anyone searching for a reliable forex signal provider would be to select one that aims to close out its trades by the end of the trading session, especially if you have a smaller account and are trading in micro lots.  Take your profit where you can, only take risks where you can afford to lose money and remember if you do not think the trade is viable, don’t make the trade!  If you want more information or to test a trading signal provider, follow the link for a 60 day free trial of one of the ones I believe can provide some decent signals for you to test your toes!