What are Forex trading signals?
Trading signals are basically services that alert the user when to place a trade. These signals are usually delivered by email, text messages or both.
There are many signal services available online today, and a quick search on the internet will return many advertisers selling such services. They can cost as little as a few hundred dollars to as much as a few thousand dollars per month.
But are these trading signal services any good? Are they worth the money? These are just some of the questions many new traders ask, but are unfortunately not given many honest answers.
The honest answer is that it depends...
But here are 2 general rules to stick by if you're looking for a good signal service to subscribe to:
1.A truly profitable signal service will never be cheap
If you were the owner of a truly profitable signal service, would you sell your service for only $100 per month? I most certainly wouldn't. If my trading signals were consistently profitable, my customers would be able to make thousands of dollars (at least) - so why charge only $100 for a service that can make more than ten times that amount? I'm sure you've heard of the phrase "there's no such thing as a free lunch", and this applies to Forex trading as well. People who think that they can make thousands of dollars by paying only a few hundred are only kidding themselves. And yet there are many such people every day who get scammed into paying for a lousy service. Don't be one of them.
2.Find out who (or what) generates the trading signals
I'll tell you this right now - never subscribe to a service that's based on automatically-generated signals. Such automatic signals are usually produced by computers that have no way of understanding the current market outlook or situation.
Would you put an airplane on autopilot to fly through stormy weather? I hope not. And unfortunately, "storms" happen every day in the Forex market.
Conclusion
Generally, I wouldn't suggest subscribing to a signal service at all. I'll always advise new traders to develop their own trading system that suits their needs. But if you absolutely MUST subscribe to a service, at least make sure that the signals are generated by a real, live trader, and not by a machine.
