Education

Automated trading using forex signals

A look into the use of forex trading signals

ForexLive

Many
forex brokers and independent companies have developed trading systems that
offer forex signals telling the user when to buy and sell. The execution of a
trade could be as simple as pressing a button or making a telephone call.

Forex trading
signals

usually operate on a mathematical formula and when parameters are met, a signal
is sent out via e-mail or phone. Once the signal is received, it’s up to the
user to decide whether or not to take the signal.

There
are a lot of mixed reviews on forex signal service providers. To be truthful
most signal services work, it’s the individual that fails to follow the system.

Even
though you are not deciding when it’s a good time to buy or sell, your emotions
can still get in the way if you are coming off of a losing streak. It is
however possible to weed out a lot of the losing signals if you are able to
identify the overall trend.

Some
companies claim to make 20% per month using automated trading systems. I’ll be the
first to say that these systems do exist; it’s just a matter of testing the
different trading software’s out there to see which ones work and which ones do
not.

When
seeking out a reliable source of forex signals be sure that their data is back
tested and the company has a proven track record. Most systems will offer a
trail period that enables you to test the system before committing to their
service completely. 

Prices
for these systems can range anywhere from $15 to $500 per month depending on
the quality of the signals.

If
a novice trader is lucky enough to find a personal forex trader that manages a
small group of people and their money this can sometimes be even more
profitable then the large forex signal service providers. 

However,
finding reliable forex traders and trusting them with your funds are hard to
come by.

In
our opinion, there is nothing wrong with using forex signal providers given you
do not have time to trade for yourself. However, taking a bit of time to learn
how the forex market reacts to news and events will greatly enhance you trading
profits.

This article was submitted by UBCFX.

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