This blog is all about the most effective ways to profit from the forex markets. While developing your own unique trading quirks and learning how the markets work in much the same way as the pros and corporate banks do. Forex signals are something you MUST learn how to read to become a successful trader. This is why I created this mini-guide.
Table of Contents
The Best Forex Signals and the Elite Guide to Reading them
A Forex signal is an instruction to execute a profitable trade. The signal can be delivered by a human or a robot AKA manual or automatic.
- Manual. You receive a message with instructions, and you must enter the trade on your broker’s platform manually. Many novice traders like this kind of signal, because they think that by manually entering the trades they’ll eventually learn something. However, this kind of signal is often sent as a very brief message with no further explanation or reason why it is recommended. These signals require much more work form your side, in order to enter the trades without missing the signals you receive, you have to be “online” when the signal comes in, and if you miss it by an hour or so the opportunity is likely done. You should consider manual signals only if you plan to spend a lot of time in front of your computer, or will be looking at your mobile device frequently during the day.
- Automatic. Signals are received directly to your platform. The trade is automatically executed. You can open your platform at any time and watch the open trades in real time, and review your history of closed trades, but its all automated. These kind of signals normally require you to leave your computer running. Normally effective automatic signals involve fees (from a few dollars to millions). Automatic signals are much less of a headache, because it’s literally a plug n’ play solution and if you have a reliable signal source, you can make a profit without researching trades.
I’ve used both types of services and on the whole like both, but its all about the quality of your source. A reliable signal is worth a lot of money (thousands is some cases) and as a result signal sources can generally be expensive, but you can find a nice middle ground usually (explained later on.)
But hiring a signal service is not necessary a guarantee of profitability. The internet is saturated with signal providers that have a crucial factor in common: lack of actual, real profitability. In my first years as a trader, I wanted quick money, and sometimes fell in the trap of some unscrupulous signal providers that could not keep up to their promises. After years of experience and a few thousands lost, I’ve listed some of my favourite profitable signal providers below.
Looks like they intentionally removed all the hype form the company’s name, which is good to see, Robbie is a solid guy and he knows his stuff. The company offers total transparency, and is one of the few signal providers out there that actually proves that their service is profitable before you hire them. Their website openly shows the real history of their real trading account, plus external verifications of their quality, which are reviews conducted by reputed companies formed of professional FX traders. They have more than 5 external verifications and awards for their profitability, which have been tested on multiple accounts. And don’t think this verification was something like an “email” or “phone verification”. They are monitored by international groups of traders that normally don’t use signals, but hire their services only to review them according to their factual results, so a good reliable source. CLICK HERE to check them out.
What a typical day of trading will look like on your account:
Once you subscribe to their service, you have full access to their signals, which are delivered one of two ways. A Metatrader add-on that automatically opens the trades with your broker and the second is signal reports delivered to your email. Plus, you get access to their member’s area, where they deliver added value important lessons on their trading setups. You can consider this as the most important part of your professional training. Instead of just learning how to use a set of indicators, you’ll learn firsthand why the next trades will be in profit, and eventually you’ll get familiar with what makes a profitable trading opportunity.
How to read their signals?
As stated before, they deliver automatic and email signals, which are exactly the same, giving you the opportunity to have them automatically executed or to trade by yourself manually. If you use their Metatrader add-on, you will not actually be able to read the signals, but you’ll be able to watch the active and closed trades in your Metatrader terminal. Just go to the lower window of your terminal, on the “Trade” tab to watch currently open trades.
In this example, the Trade tab shows four open trades. The Symbol column shows the pairs that are being traded. Time column shows the moment the trade opened, type shows if it’s a buy or sell trade, volume is the amount of lots traded, price is the opening price of the trade, S/L and T/P and Stop Loss and Take Profit, respectively, if the signal was sent with them. Sometimes, you will see a S/L and T/P, other times not, but in the second case, when the signal service closes the trade it will also be closed on your terminal, so don’t worry about that. Next Price column shows the current price of the pair. Swap is the fee your broker has charged you so far, and Profit is the amount of profit the trade has accumulated until present time. All standard stuff, pretty easy interface to use and get used to. Finally, at the bottom of Trade tab, you can read your balance amount.
Let’s move on to the email signals. They look like very simple instructions, of these types:
SELL EUR/USD 1.0740 TP 1.0625
This signal means that you should SELL the EUR/USD at the moment you receive the email, setting a TP of 1.0625, even if the current price at your platform is slightly different. The profits will largely exceed any price difference, which can range from 0 to 8! pips.
SELL STOP EUR/USD 1.0740 TP 1.0625
This type of signal means you are not selling the EUR/USD right now, but opening a pending SELL order with a fixed price of 1.0740 and TP 1.0625. When the EUR/USD reaches that price, the order will automatically open.
CLOSE ALL OPEN TRADES
This is easy to interpret, right? Well, this instruction only applies to open trades, not pending orders. This leads us to the last kind of instruction.
CLOSE ALL OPEN TRADES AND ORDERS
Sounds like a no brainer, right? This is an instruction to literally close every activity on your account, including open trades and pending orders. (Also run away)