Anyone who wants to try their hand at Forex should be able to work with trading signals. They will be equally important to experience and inexperienced traders. However, often such tips are given by scammers and people with an insufficient level of training.
Therefore, in order to operate the best Forex signals, you should learn how to distinguish them from hundreds of available options.
Classification of signals
Forex Signals (FS) are trading automation tools. They are special tips that allow you to open and close deals on time, as well as carry out other operations. The main purpose of trading signals is to minimize financial losses and receive a certain income.
Experts know several basic classifications of Forex signals. Each of them divides hints into groups with the same parameters. The most commonly used are 3 classifications.
By degree of automation:
- Automatic. Such FS are copied automatically. They allow you to instantly open a deal, changing only various copy parameters.
- Manual. These FS are sent to e-mail or other selected communication channel with the provider. Further, taking into account the data received, the trader independently decides on the further fate of a particular transaction.
- Hybrid. The combination of the two previous types of signals is widely used. It allows you to conduct a deeper analysis and make certain adjustments. Despite this, the hybrid model leaves the last word to the trader, giving him the chance to make key decisions on his own.
- Paid. They come to the client only after making a weekly or monthly payment. In 9 out of 10 cases, the amount is fixed and it is not affected even by the frequency of the signals. Certain vendors use a scheme where the money is taken after the deals are closed and is a percentage of the revenue generated.
- Free. Such trading automation tools are rare. In most cases, they become a means of attracting users and are issued for a certain period of time. In addition, free FS are a bonus received when ordering certain services (mostly expensive ones).
- Short term. They are generated over a short period of time (up to 1 hour). Because of this, the signals are characterized by minimal reliability and their use provides a small percentage of successfully closed transactions.
- Medium-term. These FS have a timeframe of about a day. They are much more reliable than short-term ones, so they are ordered more often.
- Long term. Timeframe 7-30 days have only high-quality signals. They are formed over a long period, so they become as reliable as possible.
Recommendations for choosing trading signals
Nowadays, everyone can choose from dozens of Forex signal providers. Not all of them are honest, and some are real scammers who want to withdraw at least some money from your bank account. To avoid meeting unscrupulous suppliers, you should approach the selection process responsibly. In this case, a few recommendations will definitely come in handy.
- FS quality is provided only by providers with a good reputation. To choose them from hundreds of options, you need to study various ratings, read articles on relevant topics, look at online reviews, go to several specialized forums. Such an integrated approach will narrow the scope of the search and minimize the likelihood of choosing an unscrupulous supplier.
- Quality information is always expensive. Therefore, in order to open access to useful trading tools, you need to prepare in advance for significant expenses. However, in most cases, such costs quickly pay off and guarantee a good profit. Despite all the attractiveness of the offers, you should be extremely careful, as some scammers deliberately inflate the price so as not to look different from top providers.
- Relationship with the client is a key criterion by which providers should be selected that are able to offer high quality trading signals. They must be built on mutual respect and the willingness of the supplier to help the client generate income.
- Of the verified providers, make deals with those that operate in the same time zone. In this situation, you will be able to get tips at a convenient time and immediately use them. If, however, preference is given to suppliers operating in other time zones, then all recommendations will come early in the morning, late in the evening or at night. This will create some discomfort and reduce the effectiveness of cooperation.
- An important parameter of Forex signals is the win rate. It is measured as a percentage and shows the probability of a successful completion of the transaction. The maximum values will indicate the high quality of the signals and the expediency of their use when carrying out various actions.
- It is important that the client has a chance to personally evaluate the quality of the signals before depositing money. This will only happen if the provider provides a trial period (most often it lasts for several days and does not require payment). An alternative would be a money back guarantee valid for several days from the start of cooperation.
Forex signals are the key tool for any trader. They give a chance to quickly make the right decisions and receive financial benefits. However, it is always worth remembering that it is difficult to find high-quality and useful tips. But if you follow a few simple selection rules and take into account the recommendations of experts, everyone can do it.