A signal is a trading idea from a trader. Signals are published by all kinds of markets: those of shares, cryptocurrencies and Forex. Let’s consider the right way to trade signals for the currency market.
Why do I need Forex Signals?
A signal is rather a trader’s mindset, not a Money key.
One does not simply trade someone else’s signals.
The specific purpose of signals is to be of benefit. To find out how to get the benefit, have a look at the hints that follow below.
Benefits of signals and how to read them: 3 Hints
1. Compare your forecast with other people’s ideas. You’ve made a forecast for a currency pair, and want to find out somebody else’s opinion? Asking your friends is fine, but we would recommend you examine the signals – opinions expressed by experienced traders.
What is the benefit of Forex signals? As we make a currency forecast, we may easily get stuck with our own opinion. Reading someone else’s idea will be just as getting feedback about our opinion.
Other people’s ideas help diluting our beliefs about which way the price will move.
It’s up to you whether to agree with the public idea or to reject it: still, your mind will be aware of more than one opinion, which is good. What if you missed something that others didn’t?
Don’t be afraid of other people’s opinions. Criticism should be recognized
2. Learn new techniques from the forecasts
Forex signals are always accompanied by charts: traders show their vision of markets.
The charts and the associated captions manifest the tools people have been using for years: indicators, trends and candlesticks.
Others have spelled out their experience for us and are sharing it for free. It would be wrong not to use it.
It is from other people’s ideas that we learn new indicators, patterns and regularities that we would otherwise fail to distinguish in our own chart.
Non-explicit benefit from signals: communication
You should use hidden signal benefits: meeting new people.
Usually, signals are published by experienced traders. Don’t be shy, ask them of their opinion about market dynamics in personal correspondence. Get a habit of making acquaintances with traders, even if you think you don’t need it.
You may well discuss a trading idea with one of them, evaluate the progress of your work and get a feedback from another one, and just mingle and schmooze with some others.
People are likely to share useful information and opinions. But most importantly – they deliver experience they have been earning for years.
Let’s start signal trading: step one
Forex signals look like that:
- Asset: gold;
- Levels of entry and exit: 1473.7, 1479.2;
- Stop loss: 1471.7.
We have an open trade here: another person’s vision of the market.
No need to mimic the signal. Compare it with your own forecast:
- Which way will the rate of gold move? What is the trend?
- Where is the best point to enter the market? Why?
- Which amount is worth risking to avoid money management disruption?
In case of any doubts, do not open a trade: discuss the idea with other traders and wait for other signals.
Places where signals are available: free resources
Here are forecasts for the most popular assets published by Nikolay Korzhenevsky, AMarkets’ senior analyst:
Also, visit our YouTube channel for video reviews.
TradingView. This is a web-site where traders share signals for all the known markets. The Trading Ideas section contains a list of top authors and educational content.