By Joel Obonyo (Ezine Articles)
A Forex signal is a suggestion for entering a trade on a currency pair, usually at a specific price and time. The signal is generated either by a human analyst or an automated forex robot supplied to a subscriber of the service. Due to the timely nature of signals, they are usually communicated via email, website, SMS, RSS, tweet or other relatively immediate method.
A forex signal is not like a road sign that is easy to read. It is not displayed at eye level to catch your attention. Rather these are bits and pieces of information that may be considered public, but are mixed in with so much raw data that it is more akin to finding a needle in a haystack. A Forex signal mentor can help you in many ways. This includes but is not limited to:
• Signal Identification which allows you to sift through a veritable mountain of information to identify the choice bits and pieces(Unpaid/free signals).
• Signal Analysis (Technical/Fundamental). Paid signals from one provider whether by personal analysis or algorithmic analysis.
• Paid signals aggregated from multiple signal sources or 'systems'.
• Signal grouping which means prioritizing the information to verify first, second, third, etc.
• Signals supplied by trading software located on the trader's computer, also known as a forex robot or EA (expert advisor)
• Signal Analysis (Technical/Fundamental). Paid signals from one provider whether by personal analysis or algorithmic analysis.
• Paid signals aggregated from multiple signal sources or 'systems'.
• Signal grouping which means prioritizing the information to verify first, second, third, etc.
• Signals supplied by trading software located on the trader's computer, also known as a forex robot or EA (expert advisor)
• Exact or approximate entry, exit and stop loss figures for trades on one or more currency pairs.
• Supporting graphs and/or analysis for the signals.
• A trading history showing the number of pips profit/loss per month and/or the risk/reward ratio and actual trades. Sometimes (especially in the case of forex robots) this may be shown as back-tested results.
• One-on-one coaching, or additional interaction with the signal provider such as comments, forum, etc.
• Account management whereby a subscriber's account can be traded by the signal provider
• Educational resources either via the internet or phone.
• A trial period for a lesser price.
• Supporting graphs and/or analysis for the signals.
• A trading history showing the number of pips profit/loss per month and/or the risk/reward ratio and actual trades. Sometimes (especially in the case of forex robots) this may be shown as back-tested results.
• One-on-one coaching, or additional interaction with the signal provider such as comments, forum, etc.
• Account management whereby a subscriber's account can be traded by the signal provider
• Educational resources either via the internet or phone.
• A trial period for a lesser price.
Although these are the advantages, not all of them offer the complete list of services. Inaccurate signals: there are a number of services that supply signals of debatable quality, which do not answer the users' expectations for profits.
But working smart is better! This means: Getting explanations that you would normally not be able to get from books; being guided through interconnecting concepts to understand the bigger picture of the global economy; looking out for eventual newbie mistakes that will cost you; pointing out specific areas you are weak in; and giving you information on useful new concepts or strategies.
