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forex trade signals

Factors To Consider When Executing Forex Trade Signals

Mastering the Forex signal systems is one of the most important factors that can affect the profitability of both beginner and more experienced traders. In such a volatile financial market, successful traders and investors recognize the importance of forex trading signals.

An entire industry has been built up around trading signals, as well as the massive amounts of trading signal recommendations that flood the internet. In this article, we will go through some of the key considerations one should address when jumping into the forex trading market.

Key Consideration For Forex Trading Signals

1. Quality

As with most goods, quality should always come before quantity regarding your forex signals. The best possible forex signals will include a detailed description of the optimal configuration for your Stop Losses and Take Profits. 

Many available Forex trading signals will try to give you advice on when to jump into specific trades or possibly the direction of the recommended trade. While this may be helpful information, it is ultimately only part of the puzzle that makes up successful trading. 

Make sure to look for quality trading signals that provide specific information to inform the best possible trades. If you are curious about different platforms, you can often sign up for a free account or perhaps a demo option which will allow you to gauge the quality of the signal trading provided without the possibility of losing any of your hard-earned money if the signals provided turn out to be limited.

2. Time Frame

Another factor to consider when searching for a great Forex signal trader is the time frame in which signals are provided. It should be noted that in Forex trading, as in any financial trading, time is often of the essence. When executing maneuvers such as scalping, this fact can be especially true. 

If the Forex trading signals you receive from the system you choose are not timely, it can make the difference between a financial windfall and a huge loss. Some traders would argue that it is impossible to use signal trading when your strategy contains scalping, but with a quality signal trading system, it is possible to make informed decisions on trades even when scaping.

That said, each forex signal system is a reflection of the personal methods and preferences of the signal provider. Therefore, it stands to reason that each signal trading system is different. Most signal trading systems fall into two main categories:

  1. Technical analysis-based which uses a mathematical algorithm to analyze past price movements and use that information to inform their current trade recommendations. 
  1. By contrast, the fundamental analysis focused forex trading signal providers use information derived from current events and make their trade recommendations based on the likely impact of such events.

Finding The Best Forex Signals For Your Trading Strategy

The quality of your forex trading signals makes a huge difference in the profitability of your movements within the Forex market. Since you will simply be applying the information provided by the signal trading system you select, it is important to consider many factors when choosing the best option.

Take the time to consider this checklist before deciding your forex trade signals.

  • Time Zone – It makes the most sense when trading to choose a provider that will send information when you are likely to be awake. Because decisions in trading often need to be made very quickly, receiving trade signals while you are alert and ready to make moves will allow you to make the best decisions.
  • Free Trial – Using a Forex signal trader that allows a free trial/test period can help you determine if the system is the best fit for you. Systems like Telegram will allow you to sign up and take a look around the platform because they are confident in their ability to meet the needs of most users.
  • Compare – Take some time to check out a few different options. There are many trade signaling platforms available on the internet, and choosing the right one for you may not happen on the first try. 
  • Track Record – Take a good look at the track record of your forex signal provider. This should tell you everything you need to know about the setup performance-wise. As with any product, look into reviews from users and experts in the field before choosing a provider. There are many review services available. One good one is MyFxBook.com.
  • Full Analysis – Look for a Forex signal provider that will give you detailed information on the signals they are sending. To make the best decisions in your trades, you need to have a full picture of the market analysis. If the signal provider you are using only gives you limited information like SL/TP, you may need to investigate an alternative as this information is not reflective of the full spectrum.
  • Focus On You – Make sure the style of the signals fits your trading strategy. Earlier we mentioned the two main types of Forex trade signal platforms, there are a few more that you may want to consider. There are short- and long-term signals, signals focused on intraday breakouts, and more. Making the most money possible on any given day is likely your top priority. You will find that reaching this goal is likely easier if you choose a signal trader that fits your preferred style.
  • Extras – You may also want to look into a system that offers additional features such as social trading or educational resources. Perks like this can add additional value to your Forex trade signaling experience and can make for a better trading environment.

Final Thoughts

Using trading signals to make the best possible decisions when trading Forex can be a very lucrative decision. Finding the best possible Forex trading signals is imperative. Follow these recommendations and watch your portfolio grow.

Photo by Christian Wiediger on Unsplash

Pros and Cons of Forex Signals on Telegram

With so much information about the forex market and trading, navigation can be a severe challenge. As a result, few traders can genuinely study the market to develop effective trading strategies. In comparison, the vast majority of traders rely on social trading, hence forex signals on telegram.

Essentially, social trading is all about incorporating social media into your trading to gain leverage. Therefore the power due to social trading is a forex signal. Additionally, there are several social media platforms for obtaining forex trading signals. However, this article will focus on forex signals on Telegram because the social media platform of focus here is Telegram.

What are Forex Signals?

Forex signals are prompts that guide traders, whether newbie or experienced, towards the right time to place a trade. Usually, many traders lack the patience to study and analyze the market to develop trading strategies. And so, they mitigate this limitation by subscribing to forex signals to help them maximize their investments. Most forex signals come through emails, SMS, RSS feeds, and social media platforms. Telegram provides the most widely used social media platform for disseminating forex trading signals. As a result, we have loads of forex signals on telegram.

Pros and Cons of Forex Signals on Telegram

Because most telegram channels have a feature that allows the accommodation of tons of users. It is becoming the most sought-after media for disbursing and obtaining forex signals. And although forex signals provide some analytical relief for the trader, it is not without their advantages and disadvantages. As a result, here are a few pros and cons of forex signals on telegram.

Pros of telegram Forex signals

The number of traders who subscribe to forex trading signals on telegram continues to increase every day. The reason is that there are several advantages of getting forex signals on telegram. And here are a few of such uses.

  • It provides beginners with a trading opportunity.

Forex signals, primarily through telegram channels, provide novice and inexperienced traders with trading opportunities. As a result, most beginner traders do not have to go through the rigors of learning independent strategies. Also, trading signals through telegram afford novice traders leverage to copy trade and benefit from the expertise of experienced traders- humans or robots.

  • It saves time on market analysis.

Because forex trading requires tons of analysis, most traders suffer from information overload. There is always so much to learn. As a result, most traders do not have the time to commit to understanding how the market works. Therefore these signals save them time on extensive market analysis.

  • Speed in obtaining the signals due to instant messaging

Since telegram is a social media instant messaging platform, there is excellent speed in getting these signals. Also, users and subscribers can engage one another on the signs for better understanding.

  • Telegram accommodates many users.

Unlike many WhatsApp groups, Telegram can accommodate as many users without feeling overloaded. As a result, most forex signal providers prefer using Telegram as a direct platform instead of simpler media like WhatsApp.

  • Access to free Forex signals

Most signals provided via telegram are usually free of charge, even though some paid telegram channels are still available. However, it is a lot easier to get free signals over telegram than with other media. 

Having discovered a few benefits of forex signals, let us consider a few demerits and why we should utilize them with extreme caution.

Cons of telegram Forex signals

  • High risk of forex scams abound.

The proliferation of forex signals and signal providers makes it easy for scammers to pose as genuine sources to defraud unsuspecting subscribers. Additionally, the open and widespread usage of telegram channels also makes it increasingly easy to perpetuate forex trading scams. As a result, before subscribing to forex signal providers, you need extreme caution.

  • Most genuine forex signals are costly.

Most forex signals on telegram are provided for free. However, the majority of such signs are not genuine. Therefore, the scarcity of free accurate signals creates an increase in the price for paid signals. And most newbie traders may not be able to pay for such exorbitant subscriptions.

How telegram.forex provides forex signals on telegram for users

In business and investment, the power of leverage is of inestimable value. As a result, telegram.forex provides leverage for many traders through copy trading and forex trading signals. Therefore regardless of your trading level of expertise, you do not have to miss out on profitable trading opportunities ever again.

FAQS? What are forex signals?

What are forex signals?       

Forex signals get to traders through various platforms, mainly social media, for execution. A forex signal tells you when to place a buy or sell command for a currency pair, assuming currency trading is your thing. Additionally, forex trading signals provide news and other relevant information together with engagement platforms for their subscribers. However, while some forex signals on telegram are free of charge, others require a subscription fee to access them.

Why is telegram used for forex?

Because we get most forex signals through social media platforms, Telegram is essential since it is one social media platform that accommodates many participants. Additionally, it functions as a platform for instant yet private messaging. Therefore, subscribers can easily, quickly, and directly access trading signals in real-time.

What is a Pip in forex trading?

A pip in forex is the short form representing “profit percentage,” also known as “price interest point.” It is the slightest change between a currency pair and the last decimal point of a price quote. For instance, if we consider USD/GBP where the price shifts from 1.1040 to 1.1041, the difference is 1.1041-1.1040=0.0001. As a result, 0.0001 represents the price increase between the currencies, and consequently, ONE PIP. Therefore the slightest measure to indicate a change in value between currencies is a pip.

Can you trust Forex signals?

There is nothing illegal about forex signals, both giving and receiving them. However, it would help if you were cautious when subscribing because many providers find it easy to pose as genuine providers. And then utilize forex signal provision to scam unsuspecting victims. As a result, if you are an intending subscriber, you should research the signal provider and the channel of receiving the forex signals before subscribing. It would also help to be careful with supplying vital information like your login or account details.

Photo by Clay Banks on Unsplash

Top 3 Types Of Forex Signals

Forex signals are quickly emerging as one of the fastest-growing sub-sectors of the forex market. This is primarily because the industry continues to grow exponentially, thus attracting more novice traders. According to the Bank of International Settlements (BIS), the forex market peaked with a daily turnover of $7.5 trillion in April 2022.

This level of activity is mainly driven by large banks, institutional investors, corporations, and dealing desk brokers. However, while retail investors contribute the least volume, they are the majority in terms of representation.

However, a big percentage of them cannot consider themselves elite traders, which is why they opt to use forex signal services to speed up their learning curve.

What Are Forex Signals?

They are suggestions, prompts, indicators, or notifications about active forex trades in real time. Essentially, they tell you when to execute a trade or sell. They also give suggestions about stopping losses and taking profit and other trading essentials.

Expert human traders or robots provide these signals. And the providers value them at specific prices, while others are free. Usually, the signal provider charges a certain percentage of the beneficiary’s profit.

Forex signal notifications are usually delivered to subscribers through SMS, email, or social media platforms –social trading.

The 3 Main Forex Signals Types

When you are searching the market for forex signals, you should structure your search into three main groups.

You can have a group that classifies the different types of signal types depending on whether they are free or paid. You can also have another group that classifies forex signal types depending on whether they are manual or automated or even a group that classifies signals depending on whether they are long-term or short-term.

Free And Paid Forex Signals

Free forex signals are trading signals provided at no cost to traders. These signals are often offered on a trial basis to entice traders to purchase or subscribe to a paid package. It is the best way to introduce a new forex signal service to a community.

On the other hand, with paid forex signal services, traders make a monthly payment or make a one-off (lifetime) payment. These signals often have a verifiable track record, demonstrating their success rate, and often have no free trial option.

One major advantage of free forex signals compared to paid forex signals is that traders can use the service for free, so if it turns out to be not as successful as advertised, then there is no service loss to the trader.

On the other hand, paid signal services often have a track record from which a trader can judge before deciding to use the service. Therefore, in this case, you are using a tried-and-tested service with evidence to back the advertised performance.

Manual And Automated Forex Signals

This grouping of different types of forex signals is based on whether the signals are generated manually, or using an automated system.

Manual forex signals are derived by an expert trader or a group of analysts who coordinate to analyze the market and come up with actionable trading opportunities. Analysts look at upcoming market events, recent economic data, and market trends to generate forex signals.

Because the signals are generated manually, they are often limited in number. In addition, due to the decision-making process that at times involves a big team of analysts, it can take longer to come up with an actionable trading signal.

On the flip side, this implies that the signals are also likely to have a higher degree of accuracy due to the care and due diligence taken to generate them.

Automated forex signals rely on a computer algorithm designed to detect trends in the market using technical tools and indicators like moving averages, Bollinger bands, and pivot points among others.

Because these signals are automated, traders can expect to receive multiple signals depending on their preferences. Most automated signal services have filtering options, allowing traders to choose specific currencies or indicator types, as well as time frames.

Failing to use the filtering tool can result in you receiving multiple forex trading signals, some of them potentially high-risk.

Long-Term And Short-Term Forex Signals

Long-term forex signals are often provided during trending markets. If a given currency pair is on a long bullish run, the signal service provider can send a signal instructing the trader when to enter a new position. Subsequently, given prevailing market circumstances and the time frame of a bull run, the signal service can send instructions to the trader on when to exit the position.

One thing to note with long-term forex signals is that providers can only offer one signal at a time, an entry, or an exit.

On the contrary, short-term forex signals come with both entry and exit instructions. These types of signals are perfect for day traders, who open and close positions on the same day.

Therefore, traders tend to receive a lot more short-term forex signals compared to long-term forex trading signals.

Telegram.Forex – Handy Tool For Getting Prompt Forex Signals

Telegram.forex is one of the readily available copy trading applications that assist traders with automatic access to trading results of professionals via their telegram channel. It is the perfect system for automating your trading and getting prompt FX signals through social trading. As a medium for social trading, it connects all your telegram channels and automatically replicates trading signals. The trading signals are easily understandable. 

Final Thoughts

Forex trading signals provide traders with a shortcut to making money in forex. Rather than trying to juggle the technical aspects of the markets yourself, you can subscribe to a signal service like Telegram.Forex to receive trading alerts from top forex signal providers.