How signals help and if they help at all are question that are asked too often. We thought we’d list some of the main benefits of Forex signals and settle this debate once and for all.
We will approach this question with reference to our own service. There are other kinds of services available such as a full service and a research service which are sometimes put in the same categories as signals.
A full service includes a lot more than signals. Also, they usually will transmit signals through the trading platform, so they are affiliated with brokers and such. On the other hand, there are research services that will only give you some general information. Both of them can prove to be useful services but we just don’t deal with them so we are skipping them for now.
1 They make your work easy
Signals are generated based on strategies. For example, we use both technical and fundamental analysis to generate our signals. You can read more about our process here. Other providers might be using other strategies.
So if you already agree with the strategy of the signal provider you are subscribed to then the service is basically just doing your work for you. You would’ve done that which they’re doing for you now yourself anyway.
2 An alert service
You can use signals as an alert service just so you can have an idea when a trade is ripe and ready to enter. You don’t have to necessarily follow what they are telling you. However it can serve as a good alert service for you to then do your own research and enter a trade. You can choose to disregard a signal completely as well. It can serve as a good indicator though.
3 Offer a place to start
Having a profitable trade is not luck. Usually if you’ve done your research you will enter a position when the market is about to turn in your favor and then exit it when you’ve made good profit (ideally the best amount of profit you could’ve made from that movement). Signals can be helpful in determining these entry and exit points.
4 Risk management
Signals help with risk management. Our signals offer Stop Loss and Take Profit points. Again, it is all a calculation based on past data. We do not claim to predict the future. So you’re welcome to accept or dismiss the suggestion. Nevertheless, one way in which signals are definitely helpful is that they provide a place for you to start.
For example, we suggest SL at 1.35471 for GBP/USD. You can take a look at your account and the cushion you have and decide to set it lower at 1.34000. You can still do your own thing, but look at our suggestion as a reference point.
5 Save time
They do a lot of the technical work and calculations for you, leaving you to focus on strategy and research. They, therefore, save you time to focus on the intellectual and analytical rather than the mathematical.
Some signal services are completely automated. Experienced traders teach AI systems to generate the needed information based on formulas and strategies that have been used in the field for a long time. This would mean that you can rely on signals for background work and
At the end of the day, all indicators and tools such as signals are only that; tools. Ultimately, it is the trader who will need to know how and when to use them. Therefore, signals are only as helpful as the trader knows how to make them.
If the service you’re using is like ours then you will get authentic data based analysis through the signals. For our service, you can check the past data on the Performance page.
Make your strategy first and if you think signals can assist you with it, there’s no harm in giving them a go. Most services will offer you a free trial. We offer free trial it for a week. So that’s a good way to get a glimpse into how they work and how useful they will be for you. If they do not seem to be doing much for you, you can get your money back easily and that will be that.