Forex Trading Signals are signals to buy or sell trading instruments (currency, shares, CFD, precious metals, etc.), these are the signals for timely opening and closing positions. Trading Signals are very popular service on Forex market at the moment.
These signals suggest to a trader useful information - what currency and price is worth to make operation at, the moment for closing a position, better level to set stop loss, to avoid great losses in case you incorrectly predict the trend movements, or take profit for getting the maximal result etc.
Undoubtedly, signals play an important role for traders on Forex market, but the trader should not follow them fully and unconditionally. They are only assistants during the daily trading, once again, only assistants. Trader must make decisions according to the totality of factors, particularly, external environment (micro- and macroeconomic factors, i.e. fundamental analysis which is an analysis of economic indicators, social factors and government policy of a business cycle, can forecast price movement and trends of the market) and technical analysis and take into account non-market factors (political situation, different force-majour circumstances and etc.)
There are a lot of websites in the Internet, offering Forex signals, which guarantee a huge profit. (For example: If you use our Forex signals you will be able to get profit about 1000 - 1500 pips per month by 10 currencies, we also suggest fully automatic trading process.....) Don't believe it! Be attentive and extremely suspicious to such offers and trust reliable sources only, which have authority and reputation in the trading world.
You can check the quality of Forex signals by the following way: the comments of people you know (friends, colleagues, relatives who use the services of Forex signals provider) are the best indicator. Another way is to test the dynamics of executed transactions in a foreign exchange market. Such statistics is available for the clients, if it is not, you have to look for another Internet broker providing such information.
Forex Trading Signals may be considered as an alternative to trust management. In any case, carrying out transactions you rely on experience of other people or on the program algorithm, then analyze the market independently. In the first case, you pay a fixed sum for trading signal and independently execute transactions on a trading platform. In the second case, broker executes transactions on your behalf, but you share a part of your profit with it. In any case, if the situation in the currency market goes against you, only you take the loss risk.