Forex trading signals are employed to produce buy or sell signals for trading instruments (currency pairs), i.e. signals that indicate when to open or close a deal.
Trading signals are widely favoured on Forex. They allude to information worth having: on which pair and at what price a trader should make a deal, when to close a position, and where to place a stop loss. If a trend direction should be projected incorrectly, the signals may help to place take profit order to maximize trading performance.
Forex signals are imperative for traders. However, investors should not totally and unconditionally adhere to them. Trading signals can only assist in trading as it is up to a trader to decide whether to open a trade, allowing for the range of aspects, to wit: micro- and macroeconomic factors, technical analysis, non-market factors (political situation, various force majeure situations, etc).
There is a plethora of websites that offer Forex signals attracting customers by adventurous propositions: “Using our trading signals, you will gain 1,000 - 1,500 points monthly on 10 currency pairs. We guarantee all-around automation of a trading process.”
Nevertheless, be wary of such offers and give credence to reliable sources that have a say and a good record among traders. When choosing Forex signals, rely on the feedback provided by the people you can trust (friends, colleagues, and relatives).
Otherwise, you have to analyze the trading tool yourself. Check the dynamics of the deals conducted on Forex via your broker. Usually, such statistics is available for the clients. If the data is not provided, you should better seek for the other company since there are hundreds of them nowadays.
Forex trading signals can substitute trust management. In any case, when closing a trade, you bank either on experienced traders or program and do not analyze the market on your own. If you buy a signal, then you pay for the subscription and conduct deals individually via a trading platform or broker. If you invest through the trust management service, the deals are made by a broker or managing trader, but then you have to share profit with them. Anyhow, the risk of loss is accepted solely by you if the situation goes wrong.