How Useful Are Trading Signals?
This is a very good question and one that greatly depends on where you get your trading signals from and where you are in the learning to trade process.
But before we look into that, let’s just take a quick look at what trading signals actually are. A trading signal is an alert or a trading idea indicating the market trend. It is in real time and will often be sent to you via an email or to your phone, ensuring that you don’t miss an opportunity. Trading signals are used by Forex traders across the globe to aid them with trading decision.
Signals can be extremely useful for traders that are starting out and new to the world of forex. This is because they enable novices to concentrate on other areas of trading such as a risk management strategy, such as the placement of stop losses and trade size; and also your trading psychology, the way that you behave once your trade is running. Effectively it reduces the list of areas that require your full attention.
Novices are not the only ones that can benefit from trading signals. Those who trade as a hobby around a full-time job also find signals incredibly useful. This is because they can reduce the amount of time needed for research and reduce the time required for scanning the markets for ideas.
How useful the trading signal is will also depend greatly on where it comes from. Choosing a signal provider is another difficult task. Whilst there are hundreds of providers out there, how do you know how good they are? FX forums can be a good place to get recommendation but also consider brokers themselves. Some top brokers provide trading signals as well as platforms. For example, Vantage FX a world renowned, Australian FX broker. This broker is regulated by the Australian Investment Securities Commission, it provides a range of free signals for its live account holders.
In addition to the free signals available in every traders MT4 platform, Vantage FX also offers signals via email from trading central and free technical signals on its Market Trader platform.
Trading Central is a research provider with years of market experience. The analysts at Trading central send out twice daily email research and analysis to Vantage FX clients with $100 deposited in their Vantage FX account.
Alternatively, Market Trader, Vantage FX’s web platform has an impressive range of powerful trading signal built into the platform. These signals are derived from over 100 technical indicators making them an essential tool for traders. Simply put $100 into your Vantage FX account, using Market Trader, click the lightbulb and off you go.
Whilst forex signals have grown tremendously in popularity, you must always verify the trustworthiness of the information you are receiving. A good way to do this is on a demo account. This is a great way to test your ability to make money using a particular signal provider before you risk any real money. Vantage FX also provides its account holders life long demos, so you can practise away!