Finding good and free trading signals can be extremely challenging today. It’s understandable, in a way, that more and more beginner traders want to have good results and make money quickly. Besides that, a lot of people find it easier to rely on someone else’s strategy or even mistakes instead of making their own. It makes them guilt-free and pushes them to try one more time.
The free trading signals that can be found today are not the best ones because they are not that reliable. Moreover, even if these Forex trading signals are marketed as being free, in the long run, they may cost you a lot through the losses they will provoke. However, in this article, we will explain what are free trading signals and how you can find the best of them. Here we go!
What are free trading signals?
Forex trading signals usually come in form of short messages or indications that traders use for guidance. Most of the time, they are created on the basis of technical analysis or any other kind of research. There are multiple types of trading signals like news-related ones. These offer information based on what is happening in the world at a certain moment. Technical analysis signals provide help with the identification of various opportunities.
Users usually receive Forex trading signals on their smartphones via e-mails, text messages, or any other communication channel. There are also forums, like Reddit, or even websites or social media platforms that provide free trading signals. No matter how nice or professional these trading signals look, our tip would be to always try them out first on a demo account. In case these signals are not that qualitative, you won’t lose your money by trying them blindly.
How do free trading signals look like?
Trading signals are very short messages that only contain some key elements that can aid you when trading. Usually, they begin with the order’s direction, such as BUY or SELL. The next element is the trading tool, usually in the form of a currency pair (ex: EUR/USD) or an abbreviation or nickname, like Aussie. The last element is represented by the price quotation. This usually appears as four of five digits after a dot. This is an example of a free trading signal:
- BUY EUR/USD @ 1.1240
Automated trading signals versus normal trading signals
There are also automated trading signals and normal trading signals that you can use. The main difference between them is that the first one executes trades automatically, in your place. Traders usually pay for this service and the provider sends out a notification when the trade is complete. Automated trading signals are also a good way for beginners to learn more about trading and technical analysis.
However, it’s important to note that while automated trading signals can work quite a few times, you should never use them exclusively. There are times when you cannot fully trust them and, in consequence, you can lose large amounts of money. Being educated and knowing how trading works remains the most secure way of trading. This applies to both beginner and experienced traders.
How to find the best free trading signals
There are a number of elements that you need to pay attention to if you want to find the best free trading signals.
- Make sure that you know whether or not the service wins often or not. The success rate matters a lot when you are obtaining free trading signals;
- Pay attention to the number of positions. Minimum one hundred positions represent the best way to grasp a good understanding of the signal service;
- The risk to reward profile of the provider is extremely important. It must be positive and it should usually be over 1:1;
- Finally, the number of consecutive losing trades is extremely important and should be considered.
To wrap it all up, it’s extremely important to know at least the most basic things when obtaining free trading signals. As previously mentioned, you should never base your trading efforts solely on those. Make sure that you educate yourself and that you only use trading signals when they are exceptionally good and favorable for you.
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