As a beginner in the forex market, the chances are that you will feel nervous considering all the information presented to you to digest. You are not alone in this! There are so many newbies out there who want to explore the forex market but are too busy to study the tons of materials available online to develop trading strategies.
As such, traders are turning to trade signals to develop trading strategies to make a profit from the market. Trading signals will enable you to copy the trading strategies of expert traders and also give you the leverage to manage and control your investment.
In light of the above, in this article, we will walk you through what forex trading signals are about and how to use them to maximize your profits.
Receiving Your Forex Signals
To start using forex signals, you would need to subscribe to a reliable signal provider. There are so many signal providers on the market, so take time to settle for a reliable one. Once you've settled for a signal provider, they will send you a signal for you to engage with, in any of the following ways:
- Web platforms: This method of sending forex signals is gaining traction by the day because web platforms are compatible with any device; computers, desktop PCs, laptops, tablets, as well as smartphones. The benefit of web platforms is that it is easy for you to access trades.
- Desktop Platforms: Trading signals received via desktop platforms will show you key pairs and their respective indicators. The only drawback with a desktop platform is that it is not easy to monitor your trades. You need to be on your PC for most of the day.
- Mobile Platforms: This is the most user-friendly platform to receive trading signals. There are several forex trading apps you can download from Google PlayStore or Apple Store. The good thing is that most of these apps come with live trading signals.
If you are a newbie, the MT4 trading platform is the best and highly recommended for you. It is user-friendly and used by millions of forex traders across the world. It supports different types of trading signals across different devices. Whether you prefer using a desktop, laptop, or a mobile device, the MT4 trading platform has got you covered. The main objective is for you to receive your live trading signals and place a trade as quickly as you can.
Reading Your Forex Signal
Generally, trading signals consist of a stop loss, a pair, action, and take profit. It may also include a status. A stop loss is usually set to automatically close the trade when a certain amount has been lost. On the other hand, the take profit will automatically take profit whenever a certain amount has been made as a profit. A pair is the currency pair that you are trading, such as AUD/USD. Also, the action is either a "BUY" or a "SELL".
It is essential to familiarize yourself with these trading signal terms. As a beginner using trading signals, you don't need to adjust the signals, as adjusting them would completely change the trading methodology.
Placing Your First Trade Using Trading Signals
With several trading platforms on the internet, it can be overwhelming knowing where and how to start trading using trading signals. When you carry out your first trade, you need to be precise when selecting your currency pair, copy the stop loss, and take profit into the trading platform. However, some trading signals can automate this whole process for you. Since you're starting new, we suggest you subscribe to an automated trading signal so that you can make money even when you are not active on a trading platform.
The forex market is hazardous if you want to trade with your human intellects. Trading signals come handy to help you reduce the inherent risk on the market. As a beginner investor, it is highly recommended that you use a reliable trading signal if you want to optimize your profits.