Are Forex Signals Worth It? Everything You Need To Know
News | June 25, 2021, 9:29 AM | The content is supplied by a Guest author
Around 5.3 trillion dollars are traded every day in the forex market, making it the most liquid and active financial market in the entire world. As a matter of fact, the daily trading volume is usually around 53 times higher than the NYSE, which goes to show its truly incredible size.
One of the reasons for its widespread popularity is its ease of use and low barriers to entry. Unlike the stock market, the forex market is open 24 hours a day, five days a week. You can trade anytime you want, and you don't need a large sum of money to get started.
However, one of the significant roadblocks to becoming a trader is acquiring the necessary skills and expertise to beat the market and earn a steady income. It’s for this reason that many people turn to forex signal services to find new trading opportunities.
What are forex signals?
Forex signals essentially tackle the most difficult challenge that traders are faced with: consistently identifying the right trading opportunities at the right time. In short, a forex signal service offers trading suggestions or recommendations on a certain financial asset that must be implemented at a specific price and time.
These signals can assist you in improving your trading performance, regardless of your level of trading expertise or experience. In many ways, they are a form of copy trading, as those who follow them do not have to bring any prior trading knowledge to the table. Instead, they rely on the acumen and the accuracy of the signal provider. As a result, just about anybody can follow forex signals as long as they have a brokerage account, access to the signals, and the capital to trade.
The benefits of following forex signals
Before we go any further, it's crucial to note that forex signals are only as good as the source from which they’re obtained. Unfortunately, many providers exaggerate their results to deceive others into believing they have a better trading accuracy than they actually do.
For this reason, you should always conduct due diligence on the signal provider to ensure that you always receive high-quality information that will help you profit from your trades. With that in mind, here are some of the main advantages of utilizing reputable forex signals providers like FXLeaders.
They save time
Following signals allows us to focus on other things rather than staring at our computer screens for hours at a time, examining the ever-shifting quotes in the market. Many people who wish to invest money in the market don't have the time to actively search for trading opportunities. Forex signals solve this problem.
You don’t need to learn complicated technical analysis. For those who wish to trade independently, you must first learn how to conduct proper technical analysis to successfully formulate your trade ideas. Of course, this is far easier said than done, and the learning curve is rather steep, especially for those that do not have any prior knowledge of financial markets.For beginners, following a credible signal provider removes the necessity of learning how to conduct your analysis. This also drastically reduces the risk to your capital as you will almost certainly make mistakes when you first begin your solo trading journey.
You can follow experts who have much more experience than you Did you know that an estimated 90% of forex traders lose money and end up quitting? This is predominantly caused by a lack of knowledge and experience, an inability to manage risk, attempting to time the bottoms and tops of market trends, and failing to implement a consistent strategy.
Following forex signals removes all of these issues as you can sit back, relax, and tail the recommendations of the signal provider. In doing so you will likely gain access to many trades that are based on a systematic strategy that relies on several complex technical indicators - something that would take a beginner trader many years to learn.
Lastly, contrary to popular belief, trading signals are not only utilized by novice traders. Many seasoned traders incorporate signals in their day-to-day trading routine because they assist them in managing their emotions. They also highlight potential trade setups that they might otherwise have missed.
For many people, forex signals offer a pragmatic solution for those who do not want to invest a lot of time into mastering a new skill and gaining the expertise required to conquer the markets and bring home a consistent profit. A trusted, reputable signal provider takes all of the hard work out of trading the forex markets, which means that you can focus your attention on other areas while still growing your capital.
However, as we alluded to earlier, the success of your trades is largely dependent on your ability to conduct adequate due diligence and find a provider that has a proven track record over significant sample size. In general, you should always be mindful of red flags, such as:
● Traders who provide vague signals (no exit or stop loss)
● No real money track record
● Overinflated stats (such as reports of a 70%+ win rate)
● Promises of guaranteed returns
Furthermore, (if possible) you should still attempt to validate the trades using your own analysis. Of course, this all depends on your skill level and the time you are willing to invest, but the more primary research you conduct for each position you open, the more likely you will find long-term success.