People normally view forex trading as one of the biggest means to earn some easy bucks. Though this image is largely faulty, it has stuck over the years. It is indeed the lure of ‘quick and easy money’, which gets traders to the forex market. But as it goes, the reality is always a bit dour when compared to myths. Hence more than 90% of retails forex traders end up losing money in business most of the times, numerous studies reveal. But apparently that doesn’t deter people. And this is for good reasons too.
There are a host of tools, systems and mechanisms which assist people in trading forex in a way whereby they can maximize profits and prevent against losses. One foremost ‘tool’ of this kind is Forex Signals. To define signals, these are essentially suggestions to take trading positions on a particular currency pair at a given time and for a stipulated price. Signals are broadly of two types: One, when a human forex expert is making a studied observation and putting forward a suggestion; and Two—when a robot is generating trade signals based on the way it’s programmed to function. People normally trade in either one of the two ways: they may appoint a financial expert or manager to trade on their behalf. Or they might choose to trade by themselves with the aid of the aforementioned signals. (Information credit CornèrTrader)
So, how many kinds of signals exist and what are their uses? Read below to find out:
1. Investor services: This is essentially what is called a ‘high end’ or ‘upper-class’ variety of signal service, and hence comes for a hefty price. Here, you’re required to park a considerable amount of sum with the signals as money. After all the necessary deductions have been made, you’re going to get a monthly or annual return from the amount that you have invested. In a way, this is just like hiring a money manager to trade on your behalf and without aid from signals. Here’s one thing you need to keep in mind: Go for this signal service only when you have managed to save up huge whopping amounts as forex investment capital.
2. Provider of Signals: These are more oriented towards serving the needs of retail traders. When a signals provider is being used, the fees can be either time-framed based or related to performance. Typically, these services give the trader access to a page where all signals are stored and displayed. The signals include suggestions for stop-loss, take-profit and ‘buy’ or ‘sell’ order prices. These are fairly reliable most of the time, but finding a signal provider, which has an almost-flawless track record with providing the guaranteed returns, is quite difficult. Also, signals are not going to do the whole work for you. You need to learn how to manage your position in order to minimise/ward off losses and take a trading position in the correct time.
3. Copy Trading: This is also called “mirror trading” sometimes. This lets you copy or mimic the trading styles and positions of other traders in the market. This is not much expensive and you can trade in an automated manner on certain platforms by choosing copy trading. All you have to do is to specify the amount you want to invest in the trade and the lot size per trade.
Basically, these three are the main types of signal providing services which exist in the forex market.
There are a host of tools, systems and mechanisms which assist people in trading forex in a way whereby they can maximize profits and prevent against losses. One foremost ‘tool’ of this kind is Forex Signals. To define signals, these are essentially suggestions to take trading positions on a particular currency pair at a given time and for a stipulated price. Signals are broadly of two types: One, when a human forex expert is making a studied observation and putting forward a suggestion; and Two—when a robot is generating trade signals based on the way it’s programmed to function. People normally trade in either one of the two ways: they may appoint a financial expert or manager to trade on their behalf. Or they might choose to trade by themselves with the aid of the aforementioned signals. (Information credit CornèrTrader)
So, how many kinds of signals exist and what are their uses? Read below to find out:
1. Investor services: This is essentially what is called a ‘high end’ or ‘upper-class’ variety of signal service, and hence comes for a hefty price. Here, you’re required to park a considerable amount of sum with the signals as money. After all the necessary deductions have been made, you’re going to get a monthly or annual return from the amount that you have invested. In a way, this is just like hiring a money manager to trade on your behalf and without aid from signals. Here’s one thing you need to keep in mind: Go for this signal service only when you have managed to save up huge whopping amounts as forex investment capital.
2. Provider of Signals: These are more oriented towards serving the needs of retail traders. When a signals provider is being used, the fees can be either time-framed based or related to performance. Typically, these services give the trader access to a page where all signals are stored and displayed. The signals include suggestions for stop-loss, take-profit and ‘buy’ or ‘sell’ order prices. These are fairly reliable most of the time, but finding a signal provider, which has an almost-flawless track record with providing the guaranteed returns, is quite difficult. Also, signals are not going to do the whole work for you. You need to learn how to manage your position in order to minimise/ward off losses and take a trading position in the correct time.
3. Copy Trading: This is also called “mirror trading” sometimes. This lets you copy or mimic the trading styles and positions of other traders in the market. This is not much expensive and you can trade in an automated manner on certain platforms by choosing copy trading. All you have to do is to specify the amount you want to invest in the trade and the lot size per trade.
Basically, these three are the main types of signal providing services which exist in the forex market.
The Various Kinds of Signal Generating Services
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