Adding forex signals to your investment strategy

    When it comes to building your wealth through investments, one constant theme you will hear about is diversification.

    shares-vs-currency-investment 

    Diversification works in an investment portfolio to reduce risk and to lower the volatility across your account.

    For example, it would be foolish to invest 100% of your money into cryptocurrencies. The volatility and swings on a daily basis are way too high.

    But if you had a selection of well-diversified investments, such as stocks, bonds, commodities, Forex, cash and 5% cryptocurrencies, then the volatility of cryptos wouldn’t be as noticeable across your entire portfolio of investments.

    Today we are going to take a look at adding Forex signals to your investment strategy and some reasons as to why you might do this.

    Adding Forex signals for diversification

    Going back to the early 2000’s, Forex was not a common investment class even for active traders.

    It wasn’t common due to the difficulties of getting access to a trading platform that didn’t cost an arm and a leg. Also, the Forex spreads were huge. Spreads are the effective cost you pay every time you place a trade.

    You could say that Forex was market tailored to the institutional investment community. Sort of like a private club for the investment elite.

    But over the last decade, brokers have continued to embrace Forex and make it readily available through free trading software such as MetaTrader 4.

    In 2018, Forex is part of the regular vocabulary of retail traders and investors alike.

    You can now access Forex signal services which have been thoroughly tested by their owners and include transparent statistics on the past performance of their Forex systems.

    An abundance of information at your fingertips

    As mentioned, gaining access to the Forex markets used to be the domain of sophisticated private traders or institutions.

    Now, you and I can make informed decisions about Forex signal providers who use third-party tracking softwares to showcase their trading results.

    You can now see statistics such as:

    • Average win & average loss
    • Annualised returns
    • Month by month trading results
    • Profit Factor
    • Sharpe Ratio
    • Sortino Ratio
    • Max drawdown
    • % of winning days

    Why add Forex signals to your investment strategy?

    By spending the time to research Forex signals, you may find a suitable service that allows you to reach your financial goals in a calculated way.

    Remember, trading Forex is risky, and you can lose more than what you start with.

    But every Forex signal service allows you to allocate risk in a way that suits your risk appetite. Gone are the days where you guess at which currency pair is going to rise or fall.

    Now you can select a service provider who runs the analysis for you and you allocate risk on your terms.

    Also, trying to pick Forex trades takes considerable time.

    By adding a forex signal to your investment strategy, you can significantly reduce the time it takes to trade the world’s largest market.

    Not only that but you can select your Forex systems and trade them in a way that allows you to choose the amount of risk you are comfortable with on each trade.

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    For the full breakdown on why Australians should invest in Forex Signal Service, check out our article: What are Forex Signal and how they work?

     

    We welcome you to give our team a call to discuss your investment goals and objectives.

    You can call Walker Capital Australia on +61 2 8076 2210, and we’ll see how we can help you achieve your investment goals.