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.
One of the benefits of forex trade signals is you can save time by using them to learn forex and to test the market without spending months or years developing and testing your own system.
However, one thing to remember about forex signals is their performance will vary from one signal provider to another. Keep in mind the quality and quantity of the forex signals you may get will differ if you are using a paid forex signal provider or a free one.
Also, not all forex trading alerts or signal systems may be suitable for all investors. As a
Trading forex means you will be exposed to many trading opportunities depending on market conditions and prevailing market sentiment. If there are big and high-risk events in the economic calendar the markets usually become more volatile.
Market volatility can be a double-edged sword – it can open more trading opportunities but at the same
Depending on your trading strategy and trading objectives, here are some ways on how to use forex signals.
Short-term trading – Some forex trade signals are focused on capturing short-term FX price action like a 1-hour or 4-hour time frame. Some active day traders use the forex calendar to monitor market news that may generate trading opportunities. You need to be watching the central bank decisions, employment numbers and GDP data if you are involved in currency trading.
Long-term trading – You can also use forex signals to identify and take advantage of long-term trading opportunities. Some forex signal providers combine fundamental analysis and technical analysis to identify trends and patterns that may suit traders with a long-term perspective of the markets.
Automated trading – Most forex brokers now provide online trading platforms with advanced capabilities for automated trading and social trading. Copying trades from other successful and active traders is also becoming a regular feature of many forex trading platforms.
Take MT4 for example, if you download MetaTrader you can access its Expert Advisors (EA) which will allow you to automate your trading using pre-set trading parameters and trading ideas. EAs are like forex robots that can execute your trading ideas once you have programmed them properly.
Time zone specific trading – You may already be aware that the global forex market operates on a 24-hour 5-day a week cycle. Within this cycle there are specific time zones that correspond to the major forex centres such as Asia/Japan, London/Europe and New York/US. Some forex signal providers may offer time zone specific signals.
Currency specific trading – While there may be hundreds of currencies available for trading around the world, chances are you may only be interested in trading a few of them. This is because there are only a small number of currency pairs that are traded heavily among FX traders.
The fact is some currencies are more liquid than others. And as a forex trader you want to trade currencies that are highly liquid, which means you can easily get in and out of a trade. You may find some forex signal providers that offer currency specific signals that will work with your strategy.
In conclusion, while there are many useful forex signals and trade alert systems you can choose from, you need to evaluate them thoroughly before you commit to any. Here are a few more reminders:
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.