Forex Trading Signals

Submitted by: Tom Flora

What are the advantages of subscribing to Forex trading signals instead of learning to find them myself?

If you can trade profitably by using Forex trading signals that you find then there is not much reason to buy them. Also if you do not have time or the inclination to do the research needed for good Forex trading signals then why not take advantage of someone who is willing to put in the time.

If the purchased Forex trading signals make you considerably more then you have to pay for them then it sounds like a win-win situation. Of course you do not always know when you see someone touting their great Forex trading signals if they are just hype or the real deal. So here are two suggestions. First always make sure you test them for a month or so with a free demo account (Please remember that demo accounts simulate live trading but your results using a demo may not be the same as a live account). Keep in mind that many providers are trying to support their own trading. Other providers just seem to want to make a name on the web. So a good test first on a demo account will be money well saved.

The second thing that should help to weed out the less than profitable Forex trading signals is to ask for a free trial. I can understand when the provider will not want to give too long of a free trial since they are doing the research and posting the signals. But a reputable Forex trading signals provider who stands behind their work would be agreeable to at least a couple of weeks. It takes two weeks to a month to understand what to look for and what to expect. On the other hand, the provider is also taking a chance. If his or her system works 10 of 12 months with nice profits but two months a year has flat or even slightly negative results. Any potential new customers who are taking the free trial for a test drive will drop them and move on. That is just the way it goes.

I have mentioned before that I also bought Forex trading signals and have learned a lot from watching them. It is a training tool for those that are interested. Some teams of traders hav spent months refining the Forex trading signals. There are also EA’s or expert advisers to trade all the signals automatically. Their team of traders has spent months refining the Forex trading signals. They are also building an EA or expert adviser to trade all the signals automatically. However these Forex trading signals have to be tweaked from time to time since market conditions are constantly changing. I don’t think there are many “set and forget” strategies that work for an extended period of time. I have not run into or stumbled upon them anyway.

So you see, the adage I like to repeat is find a way to “earn as you learn” as it applies also to Forex trading signals. If you are interested in what I have learned about specific Forex trading signals that I have used then write me and ask. Or ask about some you are thinking about trying.

If you have tried some or are using some Forex trading signals now, please write me and tell how it works for you. I may just have a page on this site that rates various Forex trading signals. If we have 12 or more traders tell us about the same providers and two give a poor rating and 10 give a good rating then those two may want to give it another shot. We can have a scale of 1 to 5. The higher the number, the better the experience. Send me your rating and tell me why you gave it that rating would also be helpful. Let’s rate the Forex trading signals to see who has the real deal.

How To Find A Useful Forex Signal Trade

There are many ways and many schools of thought to find a proper forex signal trade. For example, one way is to use a simple 14 period exponential moving average – or ema – on a one minute chart. This is a very basic trade. When the candle closes above the ema – buy. When it closes below – sell.

I understand that for most people that is way too simple. So let’s add another component to our next trade. We will now add a 5 period ema and move out to a five or even a fifteen minute chart. So the rule for this forex signal trade is: Once the 5 period ema crosses above the 14 period ema, we buy. When it crosses below, we sell.

Now let’s add one more component to this trade that will give us a higher probability in our trade direction. We now add a 62 period simple moving average – or sma. When the 62 period sma is going up, then we only take long or buy side trades and pass on the sell trades. When the 62 period sma is pointing down then we only take sell trades. The idea is we want to trade with the trend. Often times this type of trade will net us more pips with less stop outs. As with any forex signal trade, always have a stop in place and don’t get out of a positive trade until you see signs of a market reversal. Please be advised that the use of stop loss orders may not limit your losses to a specific level as market conditions may make it impossible for the order to get executed at a specific price. Have a good risk to reward ratio and make sure that your forex signal trade has been tested on a free demo account for a few weeks first.

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