The term “Forex signals” basically means the suggestions which the traders need while they trade in Forex, the market where all the currencies over the world are traded over the counter. Also, it is the most liquid market in the world.
In Tradeofy’s Forex service, the suggestions are provided to the client directly from the desk of the researcher. Tradeofy gives its whole and soul so as to provide the best possible signals/suggestions to its clients.
There are some technical analysts in the company who analyze the daily market trends and charts. Further, these analysts provide the relevant trade suggestions to their clients by evaluating the charts.
Moreover, Tradeofy known as the Best Forex Signal Provider because our suggestion helps the trader to make a safe as well as a profitable investment. Its first priority is to satisfy the client through its services.
Now, this is for those who don’t know much about the usage or the way to use Forex signals. Well, as soon as you sign up for a service so as to get the signals online, you start getting messages via email, SMS or both of them. Further, according to the preferred way you need to follow the given trade signal and start with the trade after you have made sure that the signal meets your objectives or your needs.
Though the part-time traders or the newbies prefer such a hands-off approach so that they can use the signals website which helps them with the time-consuming analysis of the whole market, the professional traders prefer the hands-on approach. It’s because at first they themselves analyze the market and confirm the result of the analysis by referring to the signals.
Now, this is a very common question that arises in every other trader’s mind, that how many signals are going to receive in a week or a month on an average. Well, the answer for this is just that these traders need to understand that the number is likely to vary.
When the market volatility is high, the traders are likely to receive the Forex signals on a daily basis and vice-versa.
However, keeping all this aside, the newbies mostly assume that they are going to earn as much as they trade. But, it’s not like that. In fact, instead of the quantity, it’s the quality that matters.
The traders should wait for the right and profitable trade and then enter the market, then only it’s going to work.
Before relying on the signals that have been provided to you, make sure you have a trustworthy, reliable and best forex signal provider. A faithful signal provider always uses a strategy that shows consistent performance record. It might be possible that their results are not profitable every month but are always consistent.
There are some credentials that your broker should meet.
- He meets your personal preferences as well as your trading style,
- He is licensed as well as regulated by an overseas agency,
- He has competitive spreads so that you can retain as much profit as possible from the relevant Forex signals.
- He is easily accessible via live chat support or phone.
There are numerous ways through which the signal provider can send the message alerts to its members-
Via Email– the members can receive the trade alerts on their email addresses. In fact, there are many traders who maintain a separate email account just for the sake of receiving trade alerts on the same.
Via SMS– This is the one of the fastest as well as the efficient mode of delivering sensitive information.
Via the member’s area– it can be defined as a portal developed by the provider where all the subscribers of the signal provider can view all the current as well as past published trade alerts.
These are the most important concepts one know well about when it comes to currency trading. They are the Technical Analysis and the Fundamental Analysis.
Technical Analysis– Here, the signal providers predict the price movements. For this, they look over the current as well as the historical price movements as a major source or the primary source for predicting the future price movements. In short, they study the price movements as a whole and make a decision accordingly.
Fundamental Analysis– Here, the method of determining the future market prices is a bit different. Here, the signal provider relies upon the economic data as well as the news reports so as to predict the future market prices.
In the fundamental analysis, the provider studies the data points like GDP, the balance of trade, inflation, benchmark interest rates, and so on.
There are basically 5 types of primary orders:-
Market Orders– This will instruct the broker to deal in a currency pair in the best possible price that is currently available in the market. Dealing basically means over here that he’ll buy or sell that particular currency pair. It is considered to be an instant order.
Limit Orders– Here, you ask your broker to buy your desired currency pair at a price that comes that lies below current market price level, and, sell a desired currency pair above the current market price level. However, there’s an interesting thing about this type of orders that these orders will activate only if the price reaches the limit order price.
Stop Orders– These orders are slightly different from the limit orders as here the broker is supposed to buy the desired currency pair at a price above the current market price level and sell the desired currency pair below the current market price level.
Take Profit Orders – This is typically called a target price order. This order will close your position when your target price is reached.
Stop Loss Orders – Stop loss orders act to protect your trade and account when price moves against you. When your stop-loss order is hit, your trade is automatically closed to prevent additional losses.
Margin: It can be simply defined as the deposit that is provided to the broker by the trader as a collateral so as to hold an open position in the currency market.
Leverage: It is closely related to the margin concept. The purpose of leverage is to let a trader control even larger units than what they are able to control.
A few types of currency pairs are as under:
Major pairs– These are the pairs that include the US Dollar as well as the currency of another such major economy. For instance, AUDUSD, EURUSD, and so on.
Minor pairs– These are the currency pairs that include the currency of two major economies excluding the US Dollar. In other words, in such currency pairs, the US Dollar is not included. For instance, NZDJPY, EURAUD, etc.
Risk can be managed in many ways out of which one way is to stop right away the moment you find yourself stuck at a point in your trade and don’t know what to do.
Another way to lessen or basically avoid your risks is to trade with a reasonable or relevant leverage.
Discipline is the key to success, no matter what your destination is, and what your field is. In fact, in trading, it is one of the necessary things one needs in order to reach his goal. A trader needs to stay disciplined all the way as well as stuck to the strategy which he has been following until now.
“We don’t have to be smarter than the rest, we have to be more disciplined than the rest.” Well said by – Warren Buffett.
Well, there are many advantages one trader can enjoy getting the trading signals:
- The trader doesn’t need to spend much time doing a thorough research on the market and the price moves. In fact, he can better utilize that time in improving his performance as well as finding the profitable opportunities.
- It gives an opportunity to the trader for how to move or how to act in the market. It tells a trader about how a professional trader interacts with the currency market.
- The trader is able to view the track record as well as the performance of the provider and decide easily whether the risk-reward ratio meets your criteria or not.