It can be quite a task for any forex trader to evaluate and find the best forex signals providers that he can find in the internet these days. Their numbers are simply overwhelming.
And simply put, not all forex signal providers are created equal.
Choosing the best forex signal provider for your account is not exactly a simple task. There are quite a number of factors that you should consider in order to find that right match for you.
1. Decide on the currency pair you want to trade
Different currency pairs move in different ways. And you, as a forex trader, should take this into account when choosing the best forex signal provider that you would want to use.
Some currency pairs show volatility during certain times of the day. Some currency pairs move in a much larger range when market forces decide to shake it up. Some currency pairs move in direct, or inverse, correlativity with other currency pairs. The list of characteristics is long, but the important thing to remember is to choose the best forex signal provider which specializes in the currency pair that you would want to trade.
Of course, the process can be reversed by choosing a signal provider first, then choosing to trade the currency pair that the forex signals were meant for.
But always remember that you should not be tempted to use a forex signal that was specifically created for a certain currency pair into the other pairs in the market, unless the signal provider states so explicitly.
As I said, different currency pairs have different characteristics. An all-in-one solution to be used in trading all of the currency pairs has a low chance of being successful in each and every pair it trades.
2. Fully automatic or semi-automatic
Some of the best forex signals providers shall let you choose on the degree of automation that you would allow for the signals to do the trading for your account.
There are some forex signal providers who just send out their signals to their subscribers in one of various means – text message, email, instant messaging, or even directly to your trading platform. And it is up to the forex trader if he would want to follow the forex signal and enter a trade according to the recommendation of the signal provider.
On the other hand, there are some forex signals that automatically enters trades into your forex trading terminal without the need of approval from you as a forex trader. It has its own pros and cons. The most obvious benefit of which is that speed in which trades can be entered into your account. But this would be at the expense of lesser control of his own account for the forex investor.
For some of the best forex signals, there exists some middle ground where the forex trader can still approve of disapprove each and every trade recommended by his provider through the forex signals. This can be the best middle ground if you are not fully comfortable with the fully-automated approach.
3. Capital Management
This is a very important factor when choosing the best forex signal for your account. Make sure that you, as a forex investor, has the final say on the capital management and degree of risk that you would allow your account to be exposed to when using any forex signal.
This can be either in the size of lots that are used for the signals that are provided for your account, or the level of pre-determined stoploss that is placed for every trade entered into your account.
You, as the forex investor, should be able to control either one or both of these factors so that you can be sure that your forex account is not exposed to unnecessary risks.
4. Timeframe used
This simply means that different traders use different timeframes when analyzing the forex markets.
Shorter timeframes are more geared towards quicker scalps, while longer timeframes aim to target the general long-term movement of currency prices.
As an investor, you should be aware of the length of timeframe your forex signal provider is using so that your expectations for the trades that he recommends would generally fit into what he shall actually be delivering to you.
5. Fees involved
Of course, there are free forex signals and there are paid forex signals. Depending on the previous criteria that we have discussed, on of the final factors that you should consider is whether you are comfortable with the additional expense that you would incur assuming that the best forex signal that you have chosen is a paid one.
In my experience, the costs involved in getting these forex signals have little to do with their actual profitability. There are free forex signal providers that give out some of the best forex signals and consistent recommendations for certain currency pairs. While there are some paid signal providers which are simply not worth it.
It is up to you as a forex investor to gauge if the profitability being brought to you by a certain signal provider is worth the extra cost you are incurring.
And even if you are just choosing among the free signal providers, you should still be careful in choosing the ones that are ultimately profitable.
How do you know?
No other way but to try them out. Therefore, it is advisable that you choose the best forex signals providers that give out free trials in order for you to evaluate if they are the right signal provider for you.
And simply put, not all forex signal providers are created equal.
Choosing the best forex signal provider for your account is not exactly a simple task. There are quite a number of factors that you should consider in order to find that right match for you.
1. Decide on the currency pair you want to trade
Different currency pairs move in different ways. And you, as a forex trader, should take this into account when choosing the best forex signal provider that you would want to use.
Some currency pairs show volatility during certain times of the day. Some currency pairs move in a much larger range when market forces decide to shake it up. Some currency pairs move in direct, or inverse, correlativity with other currency pairs. The list of characteristics is long, but the important thing to remember is to choose the best forex signal provider which specializes in the currency pair that you would want to trade.
Of course, the process can be reversed by choosing a signal provider first, then choosing to trade the currency pair that the forex signals were meant for.
But always remember that you should not be tempted to use a forex signal that was specifically created for a certain currency pair into the other pairs in the market, unless the signal provider states so explicitly.
As I said, different currency pairs have different characteristics. An all-in-one solution to be used in trading all of the currency pairs has a low chance of being successful in each and every pair it trades.
2. Fully automatic or semi-automatic
Some of the best forex signals providers shall let you choose on the degree of automation that you would allow for the signals to do the trading for your account.
There are some forex signal providers who just send out their signals to their subscribers in one of various means – text message, email, instant messaging, or even directly to your trading platform. And it is up to the forex trader if he would want to follow the forex signal and enter a trade according to the recommendation of the signal provider.
On the other hand, there are some forex signals that automatically enters trades into your forex trading terminal without the need of approval from you as a forex trader. It has its own pros and cons. The most obvious benefit of which is that speed in which trades can be entered into your account. But this would be at the expense of lesser control of his own account for the forex investor.
For some of the best forex signals, there exists some middle ground where the forex trader can still approve of disapprove each and every trade recommended by his provider through the forex signals. This can be the best middle ground if you are not fully comfortable with the fully-automated approach.
3. Capital Management
This is a very important factor when choosing the best forex signal for your account. Make sure that you, as a forex investor, has the final say on the capital management and degree of risk that you would allow your account to be exposed to when using any forex signal.
This can be either in the size of lots that are used for the signals that are provided for your account, or the level of pre-determined stoploss that is placed for every trade entered into your account.
You, as the forex investor, should be able to control either one or both of these factors so that you can be sure that your forex account is not exposed to unnecessary risks.
4. Timeframe used
This simply means that different traders use different timeframes when analyzing the forex markets.
Shorter timeframes are more geared towards quicker scalps, while longer timeframes aim to target the general long-term movement of currency prices.
As an investor, you should be aware of the length of timeframe your forex signal provider is using so that your expectations for the trades that he recommends would generally fit into what he shall actually be delivering to you.
5. Fees involved
Of course, there are free forex signals and there are paid forex signals. Depending on the previous criteria that we have discussed, on of the final factors that you should consider is whether you are comfortable with the additional expense that you would incur assuming that the best forex signal that you have chosen is a paid one.
In my experience, the costs involved in getting these forex signals have little to do with their actual profitability. There are free forex signal providers that give out some of the best forex signals and consistent recommendations for certain currency pairs. While there are some paid signal providers which are simply not worth it.
It is up to you as a forex investor to gauge if the profitability being brought to you by a certain signal provider is worth the extra cost you are incurring.
And even if you are just choosing among the free signal providers, you should still be careful in choosing the ones that are ultimately profitable.
How do you know?
No other way but to try them out. Therefore, it is advisable that you choose the best forex signals providers that give out free trials in order for you to evaluate if they are the right signal provider for you.
6 comments:
This one is great to explain.
nice explanation! It is clear that the forex signal is the most important tool. There are other tools such as robots. But it is true that the hardest part is to try each signal. it is best to start with small amounts and wait to see the results.
I read your post and after read it i think it is the way which you are describe in your post is nice and good for the people to choose the best Forex signals.
Any email contact you can provide? I have some binary option offer you might be interested with.
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