2021 has been a great year for traders – what with fintech apps like Robinhood and Public making trading a lot more accessible than it ever was, the explosion of cryptocurrencies into the mainstream and the uncertainties driven by the COVID-19 pandemic supplying extremely high levels of volatility to global financial markets. With trading becoming easier and more exciting, it’s hard to resist the temptation of entering the game and trying your hand at making some profits. However, you may be hesitant to dip your toes as you feel you lack the knowledge and expertise to place effective trades.
As we head into 2022, technology takes care of pretty much all aspects of our lives. So, why should trading markets be left behind? This is where forex trading signals come in – giving each and every trader worldwide the much needed support in making an informed decision and placing a trade backed by careful analysis. Depending on forex signals is more convenient than sitting down and trying to gain in depth knowledge about financial markets. And what’s more, even the most experienced traders depend on trading signals from time to time, in order to guide them or to confirm their analysis and make the most out of their trade ideas.
There are all kinds of trading signals service providers available online today, and the number is just growing. With so many options right at your fingertips, how do you know which is the right signals provider for you?
Free vs. Paid
One of the biggest factors to consider when picking a trading signals service is whether you would like to get them free or pay for them. And if you do pick the second option, how much you are willing to pay for forex trading signals.
Free forex trading signals are published by several websites and services looking to attract newbies into the world of trading and offer a great starting point for you to try out without breaking the bank or risking too much of your capital. Such service providers may provide accurate trading signals for free but could potentially withhold some key information or services, requiring you to make payment for gaining complete access.
On the other hand, paid signals providers would require payment upfront, either for a specific duration of time or for a fixed number of signals, charging you a higher fee for access to more information over a longer period of time.
There are reliable forex signals providers in both groups, and the first thing you need to assess is the reliability of the service you select. As long as the provider you shortlist is within your budget, make sure to check their reputation by doing some research online on the experience other traders have had using them, study their performance history to understand how many wins and losses they have had among the signals published as well as the percentage or pips of profit their signals have offered over a duration of time. Another interesting way to check their reliability is to scour social media platforms where traders frequently share their personal experiences to see if other users have good things to say about the provider you are about to select.
Quality vs. Quantity
Another key aspect to consider when selecting the right forex signals provider is the number of signals they offer in a given period of time and how effective they are. This point does play into the reliability aspect we discussed above as only a reliable, established provider can offer signals with a higher percentage of wins and higher number of pips in profit. Check if the service provider offers an adequate number of signals for you to choose from during the trading hours best suited to you.
Ensure that the provider you pick gives you trading signals across a wide range of asset classes and instruments – from leading forex pairs to commodities and even stocks and indices as well as cryptocurrencies that are all the rage lately. This will let you evolve as a trader and serve you once you gain adequate confidence and wish to diversify your trading portfolio.
In addition to a variety of instruments being covered, do also ensure that the signals provider gives you enough forex signals across multiple timeframes – offering a healthy mix of both short term signals for intraday trading with a timeframe lasting from a few minutes to a few hours, to long term signals that last between a few days and could even go up to a few weeks, giving you the potential of higher profits.
Whatever type of signal provider you select after due diligence, remember it helps to do your own research to understand how markets move, how to perform technical and fundamental analysis of your own, and how to use trading signals only as one among several tools to help you become a better trader. Over time, with expertise you will be able to enhance your trading experience by developing your own trade ideas and analysis which can make you more confident as a trader and boost the potential for profits.
Interesting Related Article: “Why Forex Trading Becomes so Popular in Africa?“