Sunday, 19 June 2011

Forex Signals: Trading With Everyone From Robots To Real People

By Ricken Osten


The forex market is both complicated and capricious. In today's dizzying environment, beginners and advanced traders alike should take advantage of forex signals. Signals are alerts containing suggested trades. They are offered based on investor-set parameters, like stop-loss, take profit, or entry price.

It is important to know that a signal service is not a broker-managed account. The end user must juggle the trading parameters and then make the trades. The service gives information and suggestions. The user then analyzes the information and makes a decision. Most only cater to a certain currency pair. They also cater to set types of trading, including day trading, swing trading, long-term trading, and carry trade.

Signals are delivered in a variety of ways. They can be delivered through a chat room or forum. They can also be delivered through email, text message, or Tweet. Some providers even send them through a specially customized pager.

A great service is the one that fits the user's needs. Users must first consider their budgets. They can find services that are subscription-based, one-time fee-based, or free. Users must also consider how and when they receive alerts. Users with a full-time job, for instance, may prefer email alerts. Suggested trades come directly to the inbox, which lets users act on trades throughout the day. Reputable services always offer a money-back guarantee or a trial period.

Before committing to a service, it's important to know some facts. Most importantly, know the track record of the expert trader or the robot who is generating the alerts. Know this before handing over any money for a service. Also, know how much can be risked per trade. For long-term success, do not risk more than three percent of the account balance on any trade.

Signal services are either automated or deployed by a live trader. Automated services are best for beginners. They are also good for people who want to be in the forex market but do not have a lot of time to commit to analysis. With minimal effort, they keep traders up-to-date with the market and show any interesting deals that are available.

Live trader signals, on the other hand, benefit advanced or more dedicated traders. Many of these traders place their trades live in a chat room or open forum. Users can watch experts and learn their strategies in real time.

Minimal effort doesn't mean no effort. Users should still follow market news and check signal settings daily. For most investors, however, forex signals provide the opportunity to make a lot of money with very little commitment.




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