Forex signals, just like all trade signals for other financial markets, are trade recommendations sent out on a regular basis to traders that they can choose to act on or not. Trading signals usually give recommendations for the direction in which to trade a particular currency pair as well as the entry and stop levels.
Signal trading has become a lot more popular in recent years and more and more traders are opting for it in the hope of improving their trading results. Signal trading services can be especially useful to traders who don’t want trading to take a lot of their time, or they simply have other things to do and don’t have enough time to analyze the market themselves.
The signals can be sent out in different formats lie through emails, text SMS messages, a phone call or even some providers integrate their signals into the trading platform. Of course, the sooner you receive the signal the better because you can act immediately if you are willing to take the position.
There are some free signal providing services, however, most good ones are paid.
Most trading signals are automatically generated by either manual traders or by a trading software. Depending on your preference both can work and give you good results.
It’s crucial that you extensively evaluate any signal provider you are considering to give your trust to. It’s unwise to just do a google search, pick one of the signal providers you found and just trade your live account with their signals.
A more prudent course of action would be to do a wide online search, check reviews from other clients if you can find, then decide on the best signal provider for your needs and circumstances. Then, it still would be sensible to test them on a demo account first before moving on to trade their signals on you live account.
Trading success is about minimizing risk as much as possible by being well-judged and through before you make any investment decisions.