Today we will talk about what are forex signals and the different types of them that you can find around internet. We will also warn you about free forex trading signals and why is difficult to take real profit of them.
What is a Forex signal
Let’s start explaining that Forex signals are, basically, trading suggestions that indicate the movements of the market in real-time. Forex signals are used by new traders and expert traders too. Most of them include the position type (buy or sell) and also the take profit and stop loss levels.
Forex signals are ideas that show to the user a trade on a currency pair at a specific time and price. Those signals can be generated by people, human analysts, or also by automatic Forex robots. Having in mind the timely nature of Forex signals they are usually communicated by SMS, e-mail or even on twitter as they are immediate methods.
Traders all over the planet use Forex trading signals in order to make decisions about their trading strategies. Forex signals are one of the most important tools that forex traders have to help them. There are many types of forex signals, some of them are offered for free, known as free forex trading signals, and others for a fee. It is important to know that the most reliable services should include information about take profit and stop loss configurations.
Types of Forex Signals
There are different kinds of services around forex signals that you can find on the internet. They can be divided on the following categories:
- Unpaid or free forex trading signals, which we will talk about later.
- Paid signals from a provider that can come from personal analysis or from an algorithm.
- Signals given by a trading software located on the trader’s computer, also known as forex robot.
Forex signals suppliers use to offer the following services to the people who want to have trading suggestions.
- Data and support graphs for the correct analysis of the signals.
- The information that traders need to know to entry, exit and stop loss figures.
- Information on more than one currency pair.
- A trading history of their signals in order traders know the profits per month or the risk on each operation.
- Some learning resources.
Although these are the main services that signal supplier should offer, not all of them cover all the listed services. In the case of free forex trading signals most of the suppliers only give some information for free.
Free Forex Trading Signals
After years of experience in forex trading, we can say that free forex trading signals can be very dangerous for people that doesn’t understand how forex market work. In average, 98% of the people that start investing in forex market with free forex trading signals will lose all the money sooner or later.
Some free forex trading suppliers limit the number of free signals that they offer, showing only basic entry and exit information and not giving any detailed comment about the market fluctuations. Others seem not to hide any kind of information but they delay the availability of the free forex trading signals in order that the user miss the first moves and a part of the profits.
Our conclusion is that free forex trading signals are not always reliable. To make a good use of them and have real profits of the free signals is necessary to understand how the market works and to have a lot of experience in forex trading. Our recommendation for those who are not professionals is to use forex managed accounts. With them you can take advantage of the experience of a professional trader with trustable reviews.
If you want more information about Forex managed accounts do not hesitate to contact our advisers.