Forex signal is integral to trading as it is used on the price chart in such a way that buyers and sellers will converge to take important decisions on the support level and resistance level of the market and how best to buy currency pairs. However, without reliable signals from signal providers, investment returns may not be feasible.
As such, traders must partner with genuine signal providers but the question still remains -how best can we verify the signal providers? Signal providers are traders who provide investors with access to the data available on their trading analysis and operations in such a way that such information can be copied on investor’s trading accounts.
This type of access can be free or fee charged depending on the options investors want to consider. There is a view that traders can consistently generate profits when they have reliable signal providers.
Currently, there are hundreds of signal providers online and traders have to pay attention to details in order to discover the best out of them. By providing signals to all subscribers, it means they have done all the tasks of analyzing the markets in relation to the trade setups. They provide information on the trading instruments such as entry price, stop loss, charts pattern, profit levels, and other market commentaries. Most signal providers that provide free signals are not always reliable as such, but when there are service charges in form of monthly or yearly packages, established guiding terms and conditions, traders will have reasonable ground to challenge market turnouts.
An investor can trust signal providers based on the profitability levels and available information to track records. Access to verify track records will make traders know if the sent-out signals are also traded by the provider itself before subscribers start investing their money while the profitability is measured through trading pips. By this, traders will believe that the assumed traded profits are real. Also, signal providers should be willing to provide trial periods for all released trading signals for potential subscribers to verify their signals. The trial period is within two weeks and by this, traders would have developed the needed confidence to proceed with the trading signals.
The trial period will make traders confirm if signal formats will suit their trading styles and another signal accompanies such as trade charts.
Most traders don’t really understand that they have to verify the signal providers’ time zones before venturing into trading. This is because their trading performance won’t be justified if they missed out on the trading time and delay in trading signals are synonymous with missing lots of profits. The consistency of signal providers to keep subscribers updated about trading hours will make them quite considerable.
Another thing to look out for in signal providers is the style of the provided signals. There are short-term and long-term signals which are either based on fundamental or technical analysis or both as there can be breakouts and price swings in trade markets but the conscious knowledge of this from the signal providers will increase the success or profitability rate of the trade.
Signal providers shouldn’t be providing short-term or long-term signals alone but trading signals that suit your trading styles. Whatever trading signal that must be provided must have the necessary trading charts and market analysis as this will explain the rationale behind the opening of each trade. In most analytical ways, a genuine signal provider will be ready to provide relevant support to all subscribers and will be able to answer all relevant bothering questions.
FOREX SIGNAL RISK MANAGEMENT
The risk lies in the desire of traders to amass as many profits as possible against potential market losses but the greater the profit the higher the risk involved. Poor risk management is one of the recurring reasons traders lose market profits. Market risk is the twist of the expected financial market clues. For instance, traders may have predicted the US dollar will be higher than the Euro in the next trading months but things may turn out differently.
Most traders open their trades based on leverage which is usually higher than initial deposits. There is also an interest rate risk which is mostly determined by the value of the economy’s currency at a particular time and traders may lose some profits due to interest rate changes. Also, currencies are more liquid than others depending on the level of demand and supply. The risk lies in traders investing with the currency that has fewer demands which may cause a heavy delay between the opening, closing of trade through the trading platforms and this may cause small profit yields or total loss.
There is also the risk of running out of the required capital to execute trades because if there is no substantial capital, it is possible for investors to lose everything invested in the long run. The probable means of ameliorating this risk is through proper education on the forex market by all traders. They can rely on forex articles, videos, instructions from signal providers, etc.
A stop loss is a predetermined price to regulate market closure. Traders should make use of this tool so that it curbs further loss when there is a decrease in value. The stop loss is like a break in the driving car capable of regulating the speed and traders shouldn’t increase their loss margin when the stop loss is on.
Another principle is the ability of the trader not to invest more than they can afford to lose at a particular time. In the same vein, traders’ exposure to leverage should not be higher than what they can risk. These simple methods will reduce the lossing rate of investors in the trading market.
FOREX ACCOUNT MANAGEMENT
This is one of the most appealing ways for traders to secure their profits in the trading market. It happens that traders will open trading accounts in such a way that a trade expert will trade with discretion based on the agreed allowance and maximum account for selected trades. Most traders lose money because they don’t have the required market knowledge and the desire to invest is always there, hence they need the guidance of a Forex account manager.
Some traders have psychological barriers while others have tight schedules which will hinder them from concentrating on the market trend. Such managed accounts don’t require the skills of independent trading from investors other than the investment capital. The account should be transparent as possible through quality supervision by the client and account manager as a probable way of securing the account.
The account manager can also select the type of account based on the investment capital of the client. Traders should look for professional traders or make use of recommended trading signals providers to manage their investments and must also be able to set conditions that can minimize risks or expected market returns to the account manager.
Also, the manager may not have access to the investor’s fund due to the regulated security settings on the trading platform. If the manager is a broker, it is imperative for traders to verify the declared rates of return in relation to financial instruments and policies. This kind of trading idea is profitable but has its own risk as well because there are no trading activities without its risk magnitude as one cannot judge the future market trend based on past occurrence.
Traders should not trust a single manager with all their investment capitals so that whenever there is a loss from one angle, there may be comforting trading profits from another.
SIGNALS PROVIDERS REGULATION
Usually, signal providers will have to regulate terms and conditions that investors must be aware of before the commencement of any trading activities. The regulation will reflect the intention of the signal providers on charges and precautionary methods to take whenever an argument ensued about market loss. The rules will highlight investment objectives, capital for different types of trading accounts, the required experiences, and most importantly the risk involved.
The trading site will discuss the availability status of the broker including the trading hours of all signals. The regulation will be in line with the economic policies of trading markets. The agreements between traders and the trading platform are in connection with foreign currency swap which is determined by market trends. Some brokers usually prefer any complaint to be in written form which will be submitted on the website while oral instructions may be given in person or through telephone.
Also, whenever an agreement has been reached, there is a legal form that traders will be requested to append signature on while other personal information will be requested as well. The terms will include among others, the minimum duration of trade and for instance, some brokers recognized 120 seconds as the minimum duration.
Most trading indices will outline the power of brokers to cancel any forex activities at any point in time but due information will be passed across to all subscribers through text messages, email, or social media groups. Some rules are also binding on the trader as they are responsible for all trading orders and all information provided which if found faulty may attract a penalty.