It is common for forex traders to want to earn much from forex trade by struggling less and inputting very little to no expenditure to it. They prefer making decisions based on another person’s opinions and thoughts and do not want to make errors of their own making.
That explains the reason for most traders being in the hunt for prime forex exchange signals. They want to experience immense profits without having to incur any cost. However, you must realize that not all free foreign exchange signals are dependable.
Often times, it can be challenging to find free correct forex exchange signals. Moreover, the unrestricted forex signals are substandard and may turn out to be very unreliable. Therefore, to pick the best forex trading signal that will somewhat guarantee successful forex trade, let us know what foreign exchange signals are, then look into how to locate the best free forex exchange signals.
Free Forex Exchange Signals; What Are They?
Free forex exchange signals comprise short messages containing data that can aid you in your exchange decisions. The main communication channels utilized in sending traders such signals include emails, and SMS, or any other communication channel like WhatsApp.
Additionally, you can locate the free trading signals on social media platforms like Twitter, and in forums like Reddit. It is advisable that you test the free trading signals in your demo account prior to utilizing them in your own real capital investment. A forex signal is short, often consisting of vital terms.
An example is the BUY EUR/USD @1.1240. As you can see, it is short, the order’s direction which can be implied as buy long or sell short. The order’s direction is followed by the instrument of trade. In this case, it is EUR/USD. Lastly, there is a price quotation that is often illustrated in 4-5 digits, beyond the dot.
Forex Signal Authors
Numerous websites share forex signals through the internet. Social media has made access to both the free plus premium exchange signals easy, as many online users share the information on social media platforms. Three major categories of individuals are responsible for disseminating such signals. They comprise traders, affiliates, and scammers. The groups are classified based on the level of trust you can place in them.
Most times you will come across traders looking to share their thoughts with the rest of the world. More often than not, they do so because they want to gain status as a great trader, and to provide aid to other traders plus the community that provided them with the much-needed support as beginner forex traders.
An example of a common platform where traders go to share the free forex exchange signals is Forex Factory. Traders attempt to communicate reliable signals. They first do their own analysis utilizing exactly akin information, which they employ in their trades.
Getting signals from this category of signal providers is conditional. You only get to access the free everyday signals by signing up for a trading account with a forex broker utilizing their associate link. The main purpose of the link is to enable the associate stands to benefit from every exchange you make, but you still retain free access to the signals.
However, you must take caution of the signals shared by these groups as they may be misleading. The affiliates may commit much time to benefit from the shared links that they do not analyze the signals to determine their effectiveness in generating successful trades. Hence, test out the free signals in your demo account prior to implementing them in your real trade.
You should be careful of such individuals as their sole interest is in exploiting you. They are every targeting commission they get once you have used their affiliate links. Also, they may only be aiming at you buying their so-called free signals, which cease to be free once you have spent money to obtain them.
Locating The Finest Free Forex Signals
The following consist of elements you must put into consideration when selecting free forex trade signals.
- Number of positions: On the lower side, 100 positions is more preferred.
- Risk to reward profile: the signal provider should have a positive ratio between these two elements; risk taken plus rewards.
- Success rate: determine the winning rate of the signal service provider to ensure that 70% of trades are won. Anything below 50% must be treated with caution.
- Number of consecutive losing trades: this will enable you your vulnerability to losing by following the trade signal n question.
Trade signals are vital in forex trade. However, you must treat them with caution by trying them out in your demo account before implementing them with your real money. Also, find out the source of the forex exchange signal and consider the four important elements discussed above.