Forex signals are quite polarizing because there are either those who swear by them or those who have had a bad experience and now are wary of giving them another chance.
In this post, my aim is to show new traders a balanced and reasonable way of using signals that will prove beneficial to you and also not expose you to undue risk. So let’s get right to it.
Tips for using signals responsibly
#1- Keep realistic expectations
If you just keep in mind that you will most likely not become a millionaire using Forex signals or copy trading overnight, you will become more critical of any service you hire. That is what is needed.
In order to prevent getting scammed by shady service providers you have to be able to distinguish claims and profit targets that are realistic and those that are too good to be true.
Forex trading is work and if you want to be consistently profitable and successful in the long run then you can’t rely on shortcuts.
#2- Use Forex signals as a starting point for your own analysis
Signals will provide you with suggestions for entry level, profit target, and stop loss. Keep in mind that they are only suggestions. The market has been analyzed and the service provider believes that those levels are justified. However, there is never any guarantee.
Therefore, the safest thing to do is to use signals as a reference or starting point for your analysis. This will allow you to start from an informed place but then the eventual decision will be yours, as it should be.
#3- Incorporate them in your strategy
The strategies employed by different traders vary greatly. For example, scalpers and swing traders target different amounts of pips per trade. In addition to that, the duration of their trade is different and they don’t risk the same amount per trade either.
Therefore, it is the up to the trader to fit the signals they receive in their own strategy. Remember, if the signals don’t make sense, you don’t have to follow them at all. You should use signals to assist you, not to dictate your trades.
#4- Research the service thoroughly
Finally, before you sign up to any service (not just a signal provider but even a broker or any other service provider) research them thoroughly and look up reviews on third party websites as well.
Talk to a consultant, make sure there are no hidden fees and the service is a trusted one in the industry.
You should also look at the methods of generation and their past performance to make sure to further inform your decision.
