Using signals will allow you to conclude profitable trades without any special knowledge.
Novice investors do not know how to correctly analyze the movement of quotations, therefore they often resort to using such an effective tool. However, signals can also be useful for experienced traders who do not have enough time for analytical work. A signal is a hint . It is not at all necessary to react to every point to open a trade. Use additional filters to maximize your profitability. Free Forex signals can make the trading process more rational, since the human factor is minimized. If an investor reacts too emotionally to every price change, then it is better to use ready-made signals.
Today there are many different services that generate signals online. Therefore, the investor will be able to conclude profitable trades at the same time as the prompt appears. Traders are offered several types of notifications about a new signal: SMS, e-mail, notification in their personal account or by mail in the MetaTrader 4 trading terminal.
Free Forex Signals Classification
The main criterion for separation is the type of performance. In accordance with this, it is customary to distinguish signals of two types:
• automatic – this is an algorithmic trading tool. The system automatically analyzes the chart, looking for the optimal moment to open a deal. When a signal is found, an order is placed by an automatic algorithm. This means that trading is carried out without the participation of a trader. The advantage of automated signals is that investors do not have to study the market and monitor quotes. However, the probability of concluding a whole series of losing trades is extremely high;
• manual – the system generates a signal, but the final decision on subsequent actions remains with the investor.
A trader can refuse to conclude a deal based on certain indicators. Personal control over the course of the trading process allows you to minimize financial risk.
Today, you can subscribe to both automatic signals and manual prompts absolutely free of charge.
The main criteria for choosing a signal provider
It goes without saying that an investor should use a service he trusts. The reliability of the provider is extremely important. Unfortunately, there are a lot of scams in the interbank Forex market. Many of them disguise themselves as signal providers by selling ineffective signals. Cooperation with such providers will lead to the drain of the deposit.
Trading always consists of profit and loss. Therefore, the signal passability will not be 100%. Every trader should strive to be profitable. That is, there should be more successful trades than losing ones. Be sure to read the reviews about the signal provider, and only then subscribe to the newsletter.
Positive statistics are another important aspect. It is often compiled using popular services such as Investing or MyFxBook. Pay attention not only to the frequency of occurrence of new signals, but also to the accompanying information. It is desirable that the supplier provides the investor with additional information about the generation of the optimal point for opening a deal. If the signal is backed up by analytics, then it can be trusted.
The provider should offer a workable feedback system. For example, through the support service or the hotline. There are many different ways to contact managers: online chat, e-mail, phone calls, instant messengers, etc.
What signals are best not to use
Effective free Forex signals are rare. There is always a high risk of running into scammers or just unprofessional analysts. Some vendors are best avoided as they try to capitalize on gullible customers. Let’s take a look at several types of providers that cannot be trusted.
Free Forex signals from a broker
Today it is an extremely common service provided by almost all popular companies. Some companies go even further, offering compensation for losses if transactions turn out to be unprofitable. However, not all brokers bring deals to the real market, continuing to work on the principle of kitchens. Such organizations make money on the losses of their clients. Therefore, it is definitely not worth using their signals. However, all doubts can be easily dispelled by conducting a preliminary check on a demo account.
Signals for making a deposit with a broker
Another way to attract inexperienced investors. Mostly traders are promised mountains of gold for registering using a referral link, but in practice everything turns out to be completely different. This is a very common scam scheme that allows scammers to make money on naive investors. Sometimes bloggers specializing in trading use similar schemes. They negotiate with a broker about a percentage for each new client, and then start selling broken analytics under the guise of the Grail.
Users from trading forums
Do not take traders seriously who advertise their services on various forums and social networks. These types of suppliers are not liable to you, so they will disappear after a few losing trades. No successful trader will share with beginners a strategy that can bring real profits. Optimal signal sources: popular analytical services. It is better to trust your money to companies with a positive reputation.