Forex signal service providers provide alerts on potential trading opportunities. For instance, a professional trader is sitting at his desk and once he spots an opportunity, he sends out an alert to his subscribers to take advantage of the opportunity of getting into the same trade as himself.
As shown above, forex signals really do take the guesswork out of trading and make it possible even for newbies to get into forex trading and make profit at XFR Financial Limited. However, it is not all great when it comes to forex signals and forex signal providers.
It is quite easy to be sucked in by a signal provider’s past performance and start daydreaming of how you will spend the profits you will earn upon following their signals. However, you always need to remember that past results do not always tell the entire story. Some dishonest signal providers even provide exaggerated or hypothetical figures.
Forex Signals Tutorial By XFR Financial Limited
The following are some of the advices XFR Financial Limited shares so that you can choose the best signal provider possible.
- Proper Signal Structure
You should ensure that the signals follow the proper structure. Proper structure here refers to clearly defined, entry, stop loss, and take profit prices.. If the signal provider does not provide these prices then use a different one.
- Detailed Performance Report
The signal provider should provide a detailed report of the performance of the signals they provide. Ensure that the signals had the entry, stop loss, and exit prices all well defined. This will help you determine if the signal provider is suitable and profitable enough for your needs. The performance report should also be updated regularly.
- Unrealistic Profits
Avoid signal providers that promise 5 or 7 pips of profit from a trade. These profits are unrealistic and you cannot count on them because they do not account for slippage and broker spreads. Similarly, you should avoid any signal provider that claims not to have any losses. Even the most professional of traders have losing trades.
- Random Signals
Some signal providers send signals haphazardly and without any clear methodology. Most of these signals are generated by robots or Expert Advisors (EAs) and therefore not well analyzed. Signal providers that provide such signals are only looking out for their own interests and not those of their clients.
- Signal Timing
A good signal provider should have a clear timeline on when he or she will be sending out the signals. This means that you will always be prepared at a particular time of day to wait for the signals and, log in to your XFR Financial Limited account enter the market accordingly. If the signal provider does not follow a regular schedule then choose another one that does.
- Trade Monitoring
A professional signal provider should provide updates on how well or bad the trade is progressing. Since the forex market moves on news and fundamentals, it is critical that the signal provider gives such updates to help you know how to handle your position.
This post has looked at some of the things to look out for when choosing a forex signals provider when trading with XFR Financial Limited. Now that you know what to look out for, you can better choose a forex signals provider.