Wouldn’t we all like to be told exactly how to trade by a profitable forex trader; when to enter the market, where to put a stoploss, when and where to take profits, how to manage the trade. To get inside the head of someone who really can trade forex and make money.
That is the aim of a Forex Signal service.
To allow you to see, in real time what he is doing every step of the way; to allow you to share in his success trading forex. However, let’s look at the reality of Forex signal services.
There are many obstacles to achieving the objective of providing forex signals that really replicate what the professional trader is doing. Firstly there’s the time delay; just how quickly can you receive the forex signal from him, place the orders onto your account and send them to your broker. If the trader is using market orders where he trades instantly then it’s simply impossible to get the exact same trades he does even if you were sitting next to him!
However if the trader uses either “stop” or “limit” orders as the basis of the forex signal then there’s a good chance there will be time to enter the details to your own forex account and get the order in before the price has moved to fill the order. This way you would be able to exactly replicate the professionals trades as far as entry price goes.
Once price has moved to fill the order a professional forex trader will often almost immediately take some action to reduce the risk by changing the stop loss order, or taking some small profits as price moves in his favour. Trades may last minutes, hours or days and the forex signal service must inform followers of every single step the trader does to manage the trade.
A Forex Signal service is a great way to actually learn to trade..
it’s possible to see, in real time, what a professional forex trader actually does. Unless you have access to a trading floor of a bank or institution then it’s unlikely you’ll ever get the chance to see a trader in action and even then it would only be a quick snapshot of life as a professional forex trader. Trading forex successfully is all about long term success which would require you to visit the trader for many weeks to even start to understand how to trade like a professional. Mostly this is of course not practical. Which is where the Forex Signal service becomes much more than simply making money by copying trades. By seeing the trades over weeks and months you build up a picture and understanding of what the forex trader is looking for, when he stays out of the market, how much he risks, what profits he takes and so on. A forex signal service is really the only way most people will ever be able to get inside the head of a professional trader.
Selecting which forex signal service to subscribe to is always going to be hit and miss. You would want someone who’s trade record is similar to one that you would want for yourself, although the temptation is of course to go for one that claims huge profits, after all, who doesn’t want to get rich quick! However, such forex signals are rarely the best one to use as any professional trader will never be looking to get rich quick, but rather to generate sensible consistent results over many months. There will inevitably be times, maybe weeks, when the forex signal service only gives losing trades; this is all part of life as a professional forex trader and it’s this stage where most amateur traders give up. Knowing that forex signals from a professional will eventually move back to profit should enable you to get through any drawdowns and finally see the reality of life as a professional trader.