In our articles, we always say that trading is a job that requires diligence, patience, and constant learning. If you take up forex trading, all your decisions should be balanced and considered - that's what we study technical analysis for. But all of you are daily confronted with offers to use trading signals online and make a profit without any effort. In this article, we will tell you what trading signals are, who creates them, and if they can be trusted.
What Are Trading Signals And What Do They Do?
It is human nature to want to get everything without doing much effort – it's a fact of life. Traders are ordinary people. Like many, they hope for a fluke that will make them rich and successful in a jiffy. But, unfortunately, it is not so. One thing that we never tire of repeating is that to get something, you have to earn it. A few years ago people spent years learning the profession of a trader. It's a little easier for us - there is a lot of publicly available literature, in which all the necessary knowledge is collected and systematized. Famous sharks of trading willingly share their experiences, in the Internet you can find analytical reviews, allowing you to make a forecast without wasting a lot of time and effort.
Nowadays, progress has reached the point where you can leave the topic at all, and entrust the decision-making to another person or automated software. Many brokers provide their clients with online trading signals.
This is nothing more than a suggestion to open a position at a certain time and place. Such an online alert is the result of technical analysis. Someone has done all the work and given you a clue as to when to open or close a position. Also, many experienced traders are ready to provide online trading signals to anyone interested.
How Do Trading Signals Work?
This trading alert is based on an in-depth analysis of the chart, the use of indicators, trading strategies, and statistical data. They can be provided by a special program – it will calculate for you the moment to place an order. Or another trader will advise you on what to do next, based on their experience. Many traders today blog and post the results of their successful online trades online. Many newbies willingly trust such experienced traders and agree to trade accurately following their advice.
Types Of Trading Signals
Online trading signals come in a variety of forms. You may have to pay for their use or they are freely available. They can be provided by most forex and CFD brokers. They can be fully automated or require your involvement. Each type has its own peculiarities.
- Paid. On the one hand, paid online trading recommendations attract an illusionary guarantee of a positive result - after all, what you paid for cannot fail. But that is not always the case. When buying a trading signal for money, there is a high probability of running into scammers. Amateurs often hide under the guise of experienced traders. It is sometimes very difficult to verify the reliability of information about them.
- Free. Accordingly, online trading signals obtained for free are not always bad. Many successful traders try to promote their blogs or website. To attract as many users as possible, they offer free online messages advising them to place a trade at a particular moment. The same goes for forex brokers providing daily trading signals. The logic behind that is very simple - if it`s a reputable regulated company, they make money from the spread you pay placing orders. As a result, the more you trade, the more company makes which makes them interested in your success. If the person or company is interested in their reputation, they will not provide false information.
- Online Signals. The peculiarity of online signals is that you get all the information in real-time, very quickly. In addition to data on the currency pair and the color direction of the trade (green – to buy, red – to sell), the program will prompt you on the approximate levels of fixing profits and limiting losses. You will only have to follow these recommendations and open a trade.
Where Can I Get Trading Signals
It is not difficult to find recommendations for trading online. As we have mentioned before, many brokers provide different solutions for beginners. And one of them is trading signals. For example, AdroFx clients have access to daily recommendations containing not only the suggested direction of the price but also an alternative scenario and Take Profit targets.
Apart from daily signals, there is such a service as copy trading. It allows you not just to trade forex without profound knowledge but also saves a lot of time since all the trades will be copied automatically.
Automated And Manual Trading By Signals
All online trading signals can be divided into two main groups depending on the type of market entry:
- For manual entry. In this case, you receive an e-mail message, SMS, in your trading account (member`s area), or other similar means. Its main disadvantage is that it can take some time from the moment signals are sent until you see the message about it - it simply loses its relevance. We think its advantage is that the final decision is up to you. Yes, you will still have to do some analysis yourself to verify the accuracy of the information provided. But you will not mindlessly follow the advice of others but will make your brain work.
- For automatic entry. With this method of online trading, everything is as simple as possible. You install a program supplier, configure it according to your parameters of the allowable risk, and that's it. The trades are placed without your participation, you will only see the good or not-so-good results. There is no need to make decisions, and many are attracted by the emotional component of this type of work - you do nothing, and therefore there is no reason to worry about your actions. But automated trading has some disadvantages: no one is insured against failures due to poor internet connection, crashes on the server, and program errors.
Allpips Trading Signals
Allpips web platform aims to simplify the process of copy trading as much as possible. All you need to do is log in to your account, go to the menu on the left side of the terminals and click on the Follow Traders option. By clicking on it, you will see a list of all traders registered as providers of online trading signals. Information about them is open for viewing. You can see how much money the provider has in their account, which assets they work with (not always EUR/USD, many prefer more exotic pairs), their growth over a certain period, how many trades were losing, the number of their followers, active weeks, and the revenue share (% you will pay from profit).
This is just the tip of the iceberg: click on each item to view the trader's trading history in detail. The convenience of the Allpips platform is that it has gathered suppliers all in one place. If you've decided to trade on someone else's advice, Allpips is one of the best and most reliable ways to select a provider.
Can I Trust Trading Signals
If you choose a provider rationally, you can and should trust their online tips, especially for beginners. One way of looking at it is learning – you see what a more experienced trader is doing, analyze their actions, get a result, and if it`s negative, think and draw conclusions about why it happened. Be sure to test trading signals on a demo account before you give your preference to any of the providers. And do not forget about money management – set acceptable risk limits to avoid irreparable losses.
Are There Any Accurate Trading Signals?
Keep in mind that any trading signal is simply information based on the results of the analysis. It will tell you when to place a trade, but it will not provide an accurate prediction of the trend's movement. The price always has two ways, and it is not known which way it will go. Of course, no advice will give you a 100% guarantee of profit. Trading signals, based on which half of the placed trades turned out to be profitable, are considered to be quite good. If the success rate is 60-75%, it is a very accurate trading signals provider.
Conclusion
So, should you use online trading signals? We answer that you should try it! Every trader uses different ways to achieve success - some of them successful, some not so much. The choice of a signal provider should be approached intelligently, weighing all the pros and cons. Still, you must remember that trading is not a game of chance.
We are not gambling, we are working. Therefore, if you take online trading signals as an opportunity to do nothing and make a profit at the same time, you are very much mistaken. Remember, no one will share valuable information with you for altruistic reasons. All providers have a specific goal in mind - more often than not, it's to make a profit from their recommendations.
