Many people who trade forex rely on forex signals being sent to them so they know what to trade. This is because learning how to trade forex completely on your own without losing a fortune in the process is so complicated that few people actually learn how to do it well. Yes, there are lots of training courses and “systems” to learn from but the reality of the forex market is that you really don’t learn what you actually need to learn without actually doing it for real.
Often times, after people have tried to learn from such courses they end up losing a lot of money on their first efforts to actually put that learning to work in the real forex market. They soon realize that unless they get help in the form of forex signals, they’ll probably blow through their entire investment before they can become proficient enough to actually make money and not lose money with forex.
So then the question becomes which forex signals are the most profitable?
Where should you obtain these signals?
Most people opt for software or an online platform that generates forex signals based on your particular preferences – your tolerance for risk and so on. These are automatically generated from pre-programmed algorithms that are usually based on a particular trading system. The better ones are back tested with historical data in an effort to actually generate profitable signals.
However, these automated signals very quickly (usually before you even buy them) lose profitability because the forex market changes so much over short periods of time that the software updates can’t keep up – it takes real human beings to note the changes, learn how to deal with them, communicate this to the programmers, and then actually program them in and send out the updates (a.k.a. “patches”). By the time this happens, the market has already changed again. Also, it is important to note that it is impossible to program in how to deal with unexpected news events that so often affect the forex market.
Only a real trader, one who has years of experience trading forex, can really keep up with the constant changes of the forex market and deal effectively with the unexpected news events – in fact, they often clean up when these occur! These traders don’t just use one system but will actually use several. They will switch between systems and make up stuff on the fly as the market shifts and swings. This is where experience (and a really good knack for it) comes into play.
This means that the very best source for forex signals is NOT from automated software systems. The best source is to get the signals directly from real traders who are actively trading the market the same day and time they are sending the signals to you. Note, you don’t even want signals from an experienced trader if they aren’t trading that same day and time. You want signals from someone who has a good feel for that very moment in the forex market.
You need to make sure that you are dealing with a trader who has a proven track record of success and that they send you the signals in real time. You need them in real time so that you have enough time to jump in and follow their trades signal for signal. It’s a great way to learn and make lots of money in the process.