Forex signals can be an effective tool in your trading toolbox. You can use them to supplement your own existing forex trading strategy. Or you can use them to test other trading strategies you may not have in your own repertoire.
You are no doubt aware that the global forex market operates non-stop 24 hours a day 5 days a week. It’s the only financial market that is almost always open and trading.
What this means for forex traders is there are always trading opportunities when you want to trade the foreign exchange market.
And this is where the importance of a daily forex signal comes in. If you are using a forex signal provider to take advantage of price movements among currency pairs, it is vital you receive regular forex signals daily or weekly.
How to take advantage of forex signals daily
One of the benefits of trading the foreign exchange market is the fact it is almost always open, which means there are buying and selling opportunities all the time. Trading in the forex market revolves around the major forex centres which include:
Each of these forex centres open up trading opportunities.
If you use a forex signal service that sends out regular forex alerts to capture price moves in the different forex centres, then you can increase the likelihood of capturing some of the relevant trades.
But of course, those forex signals and trade alerts must work with your own forex trading strategy.
If you are a long-term trend trader and you want to capture long running trends, then maybe a forex signal that needs to be executed in the next 1 or 2 hours will not work for you.
There are many active forex traders who focus on day trading trying to capture the price action when the different forex centres are trading heavily. For example, active day traders may concentrate on the London and New York trading session when the market is most active. This means they can capture more trades when the forex majors -e.g. USD, GBP, CHF, EUR, JPY, CAD, AUD and NZD – are most heavily traded.
One thing to keep in mind when trading the forex market is the forex news which can affect the movement of the different currencies. Most forex brokers have economic calendars and market analysis around big events that may bring volatility to the forex market.
Depending on your trading experience and risk appetite you need to carefully consider those trading opportunities in tandem with the forex trading signals you use.
Components of a forex signal
Forex signal services are usually backed or run by professional forex traders or those who have developed trading systems themselves. The trading signals or trading alerts they generate are usually backed by technical and fundamental analysis, a lot of data crunching and programming – all aimed at capturing relevant trades in the forex market.
So, if you’re using one of the forex signal providers – either the paid or premium or free ones – your forex signal will usually include information such as:
Who may benefit from using forex signals?
Different types of traders can benefit from using forex signals. Whether you’re a beginner in the forex market or someone who has been trading currencies for a period of time, using forex signals can offer some benefits.
If you are relatively new in the forex market and still honing your forex trading education, you can use forex signals by placing trades based on those forex trading alerts. This will serve the double purpose of saving you time and learning about the markets.
If you are a well-established and active trader, you can use forex signals to discover other trading opportunities that may not be available to you using your own system.
The fact is the global forex market is a huge market in terms of volume of trades and trading opportunities. And by using a forex signal service that suits your trading strategy, you may have better and more chances of identifying high-probability trades.
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.