In the current global economic climate, it’s becoming more and more diffucult to find sutible employment, business opportunities or investments. Taxes and risk are up while consumer confidence is down making a conventional start-up business venture more  stomoch turning than ever. So many small business people and investors alike are looking at the Forex business as an option.

Why the Forex Business?

What could be better, a bussiness that does not rely on the fickle moods of consumers or local economic conditions. A business that you can run from anywhere your laptop can connect to the internet. No need for expensive equiment, office space, store fronts, or fancy websites and the potential to make substantial profit. A succsessfull Forex Business is the holy grale of small businesses.

If you have ever run a small business you can likely relate to stories of incompitant employees, theft, burdensom overhead, difficulty collecting payments due, unreasonable clients, never ending work schedules, and stress up to the eyeballs; it comes with the territory. It is no wonder that a business that cuts most of these problems out of the equasion is so appealing to investors and entropanures alike. But the Forex business does come with its own set of obsticles.

Forex Signals

Apples to oranges; Forex VS other businesses.

While we would all like to picture our selves as Gorden Gecko (from the film “Wall Street”) closing massive trades on a two minute abusive phone call to our broker before our five star lunch date;  the reality looks somewhat less glamours. To be successfull in the Forex business requires lazer focus and iron will day in and day out to survive the highs and lows of the business. But to realy get a good mental picture of the Forex business it helps to compare to other businesses. 

Lets say that you have $100,000 dollars to buy a business and you were considering an icecream franchise or a Forex business. While these are apples and oranges the comparisson actually paints a vivid picture.

First you have the icecream franchise, it is a well known provayor of frozen treats. To open the doors you will need to buy into the franchise, buy or lease a suitble store front, advertize, buy product, hire and train staff. While it is a fairly low risk venture, it will require you to part with your $100,000 to get the doors open, your projected profit is around $3000 a month average. It will take you approximently 33 months to recoop your initial investment and start earning money.

On the otherhand you have the Forex business. To get started you will need to open a trading account. If you are new to trading or if you are new to Forex you will need some training that will require some time and investment. After you spend $5000 and few months you have a strong basic understanding Forex trading. To improve your chances you pay for Forex signals which also provide you with your charting package. The service runs $295 a month but you pay for one year in advance and pay a total of $2475 saving 30%. You spend another $2500 on a realy nice laptop; you are only $10,000 out of pocket  ready to go, you have set a modest goal of profiting 7%-10% for the first year. ($6300- $9000 per month)

Both business ventures carry risk, the speculative nature of trading currency caries inherently more risk however, it also caries much higher potential profits. What though if you do not have a large amount of risk capital to trade the Forex market? What if you don’t have the risk tolerance? Does that mean that you can’t profit from the Forex market? Absolutely not, you can become a Forex signal affiliate allowing you to have your own signal service business. The question is what type of business suits you?

How Do Forex Signals Work?

If you are trading the Forex market, you have surely heard about Forex signals or Forex alerts. But what are these signals, how do they work? What are the different types of signals? And how can Forex signals benefit traders.

What are Forex signals or Forex alerts?

Forex signals alert you to trade opportunities in the market. As a trader, no matter how diligently you watch the market you simply can’t follow the market 24 hours a day. And depending on what part of the world you live in it may be more difficult to trade certain markets. Forex Signals allow you to work, sleep, spend time with family etc. and still have the ability to take trades during these times.

How can Forex signals benefit traders?

Obviously to have 24 hour a day monitoring of the Forex Market is a great benefit. But there are other benefits as well, for example: A trader may have been experiencing a difficult week in the market, he sees a Buy opportunity but he is hesitant to pull the trigger. If the trader received an alert to buy on the same currency it may give him the confidence to proceed.

Another side benefit is trade strategy. When you have confidence in the trade alerts you are receiving, you can focus more on your trading strategy than looking for trade opportunities.  Every Forex signal sent to subscribers is considered for risk reward ratio, probable pip move and other factors. Many traders new to the Forex market find a whole new world of strategy by just following along with the signals. This can help traders learn Forex lot management and trading multiple lots to maximize profit potential.

Forex Signals

Different types of Forex Signal providers.

There are two main different type of Forex signal providers. The most common type is Forex signal software that alerts you to trades based on the parameters of the program. There are literally thousands of different programs or “Forex Robots” that are available to traders. Price and performance vary ranging from thousands of dollars to free. The main drawback to the “Forex Robot” is that many require individual traders to program the parameters of the program based on market conditions. For nearly all traders new to Forex this makes the “Forex Robot” more troble than help.

The second type of Forex Signals is provided by professional traders. These traders watch the market and alert you to trade opportunities based on their interpretation of market indicators. Again there are many different providers to choose from with a wide range of price and performance.  Here the main thing to remember is that with relatively small investment anyone can start a web site and offer Forex signal services from their garage. So look for a reputable company that has a strong track record of performance history. You should be able to communicate with the company by email, phone, live chat, etc.

I recommend the second type of Forex Signal provider for the following reasons:

• Relatively low cost- typically a reasonable monthly subscription fee rather than large upfront cost of software or “robot”.
• Signals are only as effective as interpretation of conditions- a professional team of traders will be much more effective at reading the real time market conditions than a “robot” programmed by a new trader.
• Accountability- when a signal provider is sending trade alerts directly to clients based on the provider’s recommendations rather than a program that was sold to you, it maintains signal provider accountability.
• Ease of use- new traders can simply follow alerts and focus on managing trades; no need to program or set software parameters.
• Information- many Forex signals only offer buy or sell alerts, but some offer Entry Price, Stop Loss, and multiple Exit Levels making it simple to follow along.

  In the end, the old saying that two heads are better than one still rings true. There is no rule that says you can only use one type of service or one signal provider. Depending on your risk capital and trading goals it may well be worth employing a few different signal providers or other trader assistance.

In most other businesses the main expense is often advertising. While an ad on television may bring a certain type and number of new clients, an ad on the internet will bring yet another type and number of new clients. Then there are news paper and magazine ads, on and on a successful business needs to reach as many different groups of consumers as possible.

Likewise as a Forex trader, you need to tap into as many good trade opportunities as possible. Utilize whatever works and continue to seek more ways to spread your risk and maximize your potential. Finding the right combination of Forex Signals, Forex managed accounts, Forex software, and advisers can allow you to turn your interest in Forex into a full time Forex career.

Since 2006 I have spent hundreds of hours speaking to countless Forex traders of varying experience and skill level. And one thing that stands out in those conversations is the lack of understanding and confidence in Forex lot management namely: trading multiple lots. Understandably so, because the Forex market is volatile and rapid changes in currency values happen on a daily basis. Trading multiple lots can increase profits or losses; multiple lot trading can increase risk and action needed per trade. There are many factors to Forex lot management; for this article we will be focusing on trading multiple lots as “Forex lot management.”

Increased profit through Forex lot management:

The most basic concept is that if you are trading 3 lots for example, you will triple you profit or losses with each trade. But the real potential for increased profit comes from increased exit opportunities. Consider the following trades:

1. For this trade your stop limit is set 30 pips below entry price and your exit level is set 35 pips above entry price on three lots. After your order fills, the market makes a +98 pip move. You bank +105 pips.
2. Same trade as above, This time your stops are set -30 below entry price, lot one is set to exit +35 pips above entry price, lot two is set to exit +65 and lot three is set to exit +85. The market makes the same +98 pip total move as above however, in this example you have maximized your profit potential. You bank +185 pips.

Forex Signals

In the first example we have a good outcome on the surface but if you consider that you are risking -90 pips to gain +105, you see that the risk/ reward ratio is not favorable. In the second example, you see that we have a positive risk/ reward ratio and have maximized our profit potential. Another benefit to example #2 is you are now taking advantage of the big moves that occur in the market rather than only taking profit at low levels.

Forex lot management and increased risk:

Staying with our 3 lot example it is easy to spot the increased risk when trading multiple lots. If we have misjudged the market and stop out; we have tripled our losses. This will happen from time to time, but if your Forex lot management is good, you can tip the scales in your favor on trades that don’t go as well as expected.  Consider the following trades:

• Like example #2 above you trade three lots all with a stop level of -30 pips below entry, and exit levels of +35, +65, and +85 pips above entry. But in this case the trade only moves +42 pips then turns around falling several pips below entry stop levels.

1. Lot one banks +35 pips; lot two and three stop out -30 pips each for a loss of -25 pips (Poor risk management.)
2. Lot one banks +35 pips; when lot one reaches exit level you move stop to entry price for lot two and three. Lot two and three stop at entry and you end up +35 pips.
3. Lot one banks +35 pips; you move lot two and three to +10 above entry. Lot two and three stop out at + 10 pips respectively. Trade profits +55 pips.
4. Lot one banks +35 pips; you move lot two and three stop level to +25 above entry. Lot tow and three bank +25 respectively. The trade profits +85 pips.

As clearly shown in the above example your Forex lot management strategy can greatly affect your overall performance. Considering you are able to determine correct market direction effectively; trading multiple lots can be an effective way to increase your profits and take advantage of the big moves. Conversely, the increased risk associated with trading multiple lots can be managed based on market conditions.

If the market is in a period of strong trending you may opt to use strategy 2 to allow the market room to breathe in hopes of a big move. Or if the market has been less predictable you may opt to go with a more protective strategy such as 4. While it does not allow as much breathing room to reach your higher targets, a strong move may still continue on to your highest target.

Look at your trading over the last few months and consider what the results would have been if you were trading 3, 4, 5, 6, or even 10 lots. How could you spread the exit levels to maximize your profit potential?  How does the risk/ reward ratio change? Look at the last 10- 20 trades that you have taken; how would these trades performance changed if you were trading multiple lots?

The most important part of the puzzle obviously, is knowing when to buy and sell in the Forex market. If you are struggling to find direction the last things you want to do is double, triple, or quadruple your risk. Practice trading multiple lots in a demo account and make your mistakes there. If you need help knowing when to buy and sell consider Forex trade signals or other trading assistance before upping the risk.

It is important to realize that there are many different strategies to trade multiple lots; and you as an individual trader must consider factors specific to your account. If you are trading a micro mini account multiple lots may be out of reach. On the flip side, if you have a substantial standard account, a losing trade will carry a substantial sting with multiple lots. So practice with a demo account that is similar in size to your live trading account.

Most traders find that they do much better in a demo account than live trading account for one simple reason. –No risk of losing money. A trader will take a losing trade and jump right back in the next opportunity without the apprehension that usually accompanies such trades. If you want to have a realistic look at your performance it is absolutely paramount that you trade just as you would in your live account.

Forex risk management

At the very mention of risk or risk management most people simply glaze over. We live in a world full of risk; around every bend is potential disaster. Whether it’s getting on an airplane to go on vacation, downloading an attachment in an email, or touching a public door knob, we are faced with risk that we would rather just ignore.

But when it comes to trading the Forex market, we must face the risk head on. Because unlike the one in a million chance of being involved in a plane crash, taking an unprofitable trade is a regular if not daily occurrence. For this reason, Forex risk management needs to be at the forefront of every traders mind if he is going to be successful.

As a trader, we tend to focus on knowing when to buy or sell in the Forex market as the most important part of trading. While it is very important to know when to buy and sell, it is only the first piece of the puzzle, next and just as important is a Forex risk management strategy.  Consider some of the risk issues that need to be considered and managed.

Forex Signals

Forex Risk Management Issues:

• Individual risk appetite and tolerance
• Correct trade selection
• Account management/ Lot size
• Broker selection
• Market conditions

Risk Appetite

Like all speculative markets, high risk and high profit potential go hand and hand. Regular and rapid changes in currency value create many trade opportunities and potential for profit. The Forex market is a high risk/reward market; if you are not comfortable with this fact the Forex market is not for you. Currency can gain or lose value compared to other currencies in a matter of days, hours, or even minutes. It is this volatility that makes the Forex market so attractive to traders. It is imperative that you are honest with yourself about your personal risk appetite or tolerance before you get involved in currency trading.

Trade Selection

Obviously, knowing when to buy and sell in the Forex market is a very important part of Forex risk management. The ability to watch the market and identify trade opportunities using several market indicators requires skill and risk tolerance.  If you take two losing trades in a row, will you have the confidence to take the next trade? Educate yourself about the Forex market and find ways to help your trade selection, such as with Forex signals.

Account Management/ Lot Size

Unfortunately, some have advertised the Forex market as a way to make easy money with a small investment. Many people new to Forex believe that with a just few hundred dollars they can double and triple their money over a short period of time. This is false and will usually lead to unpleasant results such as market calls and losses that can clean out trading accounts.

To grow your trading account you must have good account management skills. Some questions you should be asking yourself are:

•  Will you be trading standard or mini lots?
•  Is my account capable of withstanding a string of losing trades?
•  How many lots will I take per trade and what will be the impact on my account when I lose a trade?  What will be the impact when I win a trade?
•  What is the risk/ reward of my trading strategy? – If I lose more trades than I win, will I still be able to profit?

 Avoiding mistakes and mismanagement of your trading accounts is vital to a good Forex risk management strategy. Take the time to look at your account management on a regular basis as market conditions change and as your account grows or if it shrinks.

Forex Broker Selection

There are several different brokers of varying size and geological location. Different brokers offer different fees and spreads on currency pairs as well as other features. But there is more to choosing a broker than just finding the lowest fees or spread. Selecting a good broker is very important to your overall Forex risk management strategy.

Although one broker may offer lower spreads, they may have poor execution of trades making it difficult to get your desired entry price, stop loss, and exit level. A slightly less spread is of no use to a trader if trades are not executed accurately by the broker. In fact, poor accuracy and slippage can cause significant losses.

It is important to select a well established and stable broker. Unfortunately, some of the “discount” brokers have actually gone out of business, costing traders massive problems. Do your research and be sure that the broker you select is well established, stable and has strong positive financials.

Other features to look for:

• No conflict of interest between broker and trader.
• No dealer intervention in trades.
• Price providers (Banks) do not see your stops, limits, and entry orders.
• Competition reduces the potential for market manipulation by price providers.
• Ability to trade during breaking news.
• Ability to place entry orders anywhere—even inside the spread.
• Ability to scalp the market.
• Rollover transparency—all amounts are displayed in advance.
• Receive positive rolls at all margin levels.

Forex Market Conditions

As previously mentioned, the Forex market is volatile. This means that market conditions can change rapidly and often. You need to be able to adapt both trading and your Forex risk management to market conditions in periods of strong trend and in periods of difficult range bound conditions.

This is the reason that many Forex robot programs work for a period of time and then seem to get it wrong other times. If you are not able to watch the market every day, you need to find a way of keeping up with market conditions. (Forex signal services can be an effective way to help traders keep abreast with conditions.) By keeping up with market conditions you will be able to optimize your profit potential during strong trending markets and minimize risk during difficult market conditions. All this adds up to good Forex risk management.

So you’re trading Forex and you see the potential of the FX market. But as an individual trader, you just can’t watch the market 24 hours a day. And depending on where you live in the world following the big market moves can be even more difficult.

One option is using FX signals (Forex Signals) to alert you when to buy and when to sell. The idea is that the FX signal service will alert you to potential trade opportunities that will assist you in trading the market. This can help traders in two ways:

• FX signals can help traders by alerting traders to potential trade opportunities that may otherwise be missed. FX signals will alert you to these opportunities 24 hours a day .
• The other way in which As a trader watches the FX market hour after hour, it can become difficult to pull the trigger. If you are seeing a potential trade opportunity and you receive a signal to take that trade, it gives a trader the extra incentive to take a trade.

Forex Signals

FX signals come in two main forms:

• The majority of FX signals are provided by Forex trading software. The software is designed to recognize specific FX market indicators and alert traders when the market conditions meet preset conditions.
• The other means of FX signals are those generated by professional Forex traders who watch the market 24 hours a day.

While FX signal software is the most common form of signaling it has inherent limitations due to changing FX market conditions. This lends to results that may be very positive for the test period of the software, but then may not perform shortly thereafter. While the software may be adjustable, many traders looking for signals are not confident to set the parameters.

When FX signals are provided by a team of professional traders there is a benefit of having reasoning and experienced trader able to make choices about indicators and market conditions. Again, during periods of strong market trending these signals can provide positive results on a regular basis. The benefit during more difficult market periods is that the trader sending the signals is not programmed to previous market conditions.

FX signals can be a valuable tool for individual traders to take advantage of the Forex market. Always exercise caution and test out live signals on a simulated account before risking your real funds regardless of the type of signals you are testing. Spend the time necessary to understand exactly how to use the FX signals. Verify that you are comfortable with the Entry prices, Stop Loss, Exit levels, and always verify information with live charts.

The first thing any trader looks at when considering a Forex Signal provider is results. We can all take losing trades, what is the point of paying for Signals if you don’t get results?  But every signal service seems to tout positive results on the results page, so how do you determine if the results you’re looking at are actually positive? –Know the facts.

Fact 1: Forex signal results- Real time history.

First and most important you must be able to verify that the results reflect real time activity signaled to active clients rather than a signal program being applied to the past. You will want to look at a reasonable period of time to get a good feeling of positive results. (Look through several recent months and months in past years.)

Forex Signals

Fact 2: All Forex signal results are “hypothetical.”

Hypothetical results in terms of real time Forex signal results. In other words, if you were to enter at the exact entry point, set the same stop, and exit level, you would have similar results. Signal providers must say that results are hypothetical because you as an individual trader may exit early or run a shorter stop. Your broker may not fill or exit at exact levels due to “slippage” or rate spikes. Basically, the closer you follow the signals the closer your results will be to those advertised by your Forex signal provider.  Always exercise caution and test out live signals on a simulated account before risking your real funds.  And remember the Forex mantra; “If in doubt stay out”.

Fact 3: Exit point is the main variable to Forex signal results.

The main variable in Forex signal results will be the Exit Point of the individual trader. Most traders will follow the advice of a signal when it comes to Entry Point and Stop Loss, but when it comes to Exit Points; most traders have their own take profit goals. The number of lots traded and the exit levels of those lots will have a major effect on your overall results.

Additionally, when looking at Forex signal results, you are typically looking at the “total move.” So if the results show a positive trade +94 pips, what are the chances that you as a trader will trade one lot and bank +94 pips? –Almost none. What you as a trader are looking for in Forex signal results is positive direction. You have to consider how many lots you are trading and what levels you intend to exit.

Consider the above example +94 pips total move, two different traders. Trader 1 uses one lot and exits at +50 banking a total of +50 on this positive trade. Trader 2 uses three lots: lot 1 exits at +35, lot 2 exits at +60, and lot 3 exits +80; trader 2 banks +177 pips on the same trade. Therefore, you can see that the amount of lots traded and the Exit Points will have a major impact on your individual results.

Fact 4: Losing trades are as reliable as the Sun rise.

If you do not see losing results in a trade by trade history of Forex Signal results; you know that what you’re looking at is pure garbage.  If the results you are looking at show winners and losers it is more likely that you’re looking at legitimate real time results.

This brings up the all important risk management conversation that will be discussed by its own article. A trader’s own individual risk appetite must be addressed when considering Forex signal results.

Consider the scenario.

• The best possible profit for a trade is +42 pips.
• Trader 1 only traded one lot and he followed the trade signal advice and adjusted his Trailing Stop to Entry Point and was closed out at the Entry Point for a break even trade.
• Trader 2 traded 3 lots and he banked +35 on the first lot and was stopped out at the Entry Point for a break even trade on the other two lots.
• However,  if the Stop was not changed to the Entry Point, and the price reached the original Stop Loss, then Trader 1 would have been stopped out at a loss of -30 pips while trader 2 loses on 3 lots; -90 pips.

Make sure that your risk management approach is in line with the results in the trade by trade history. Risk management cannot be emphasized enough in a market such as Forex. Remember, every trade is unique to the individual trader’s capital availability and management strategy. Forex signal results can and will vary from trader to trader.

Fact 5: Percentage of winning trades is a distraction from true Forex signal results.

Companies that want your business may provide you with information

Useful information or sleight of hand?

asserting an average 80%-90% winning trade history. However, this information serves as little more than a distraction because these percentages do not necessarily translate into favorable Forex signal results. I would consider such claims to be questionable advertising at best and outright falsehoods at the other end of that spectrum. These types of numbers are usually achieved by “creative auditing” that counts any small gain as a winner even though it is unlikely a trader using the signal would exit at that level.

Consider this:

• Scenario 1: You receive 10 signals during the week of trading from the 80%-90% guaranteed provider; all signals have a Stop Loss of 30 pips and an Exit Point target of +35 pips exit.  Two trades stop out (-60) next five trades exit at +5 and three trades reach Exit Point of +35 (+105). Your final result is +70 for the week at best. The signal provider books another week of 80% winning trades though it is unlikely that individual traders exit at +5 pip levels.

• Scenario 2: You receive 10 signals during a week of trading; all have a Stop Loss of 30 pips and an Exit Point target of +60 pips. Four trades are stopped out, (-120 pips), two are break even trades (stopped out at Entry Point) and four reach the exit of +60 (+240). This scenario is 40% winning trades, but it ended up +120 pips positive result for the week.  No creative auditing involved. The positive pips earned minus the negative. Exit levels, stop loss, and move stop to entry are all at levels more likely to be followed by an individual trader and more likely to be honored by your Forex Broker.

Realistically, over a long period of time, the percentages of winning trades produced by any signal provider will go up and down. During periods of strong market trend it is not so difficult to produce accurate signals at high percentages, but what about range bound periods or chaotic periods such as those of late 2008 and through 2009. During these periods 30% or 40% ratio is more realistic, so how do the Forex signal results fare then? So look at the big picture, look for good risk/ reward ratios, avoid useless information and slight of hand marketing ploys.

Are accurate Forex signals just a myth or dream?

Are you chasing rainbows?

The first and most important question when it comes to accurate Forex signals is: How do you define accurate? If you define accurate as 90% winning trades week in, week out, then you’re chasing rainbows.

“Accurate,” is more complicated to pin down when it comes to currency trading and signals than yes or no. Finding a good Forex Signal provider is more like getting into a relationship than simply choosing a service; a union that requires trader and signal provider to work in harmony.

While the signal provider is going to work to provide accurate and reliable signals, it will be up to the trader to execute the trades. Realistically, overall accuracy will have as much to do with the individual trader as it will have to do with the accuracy of the direction. (Buy or Sell) Let me explain:

Forex Signals

A trade signal is sent to BUY the EUR/USD, with a stop limit 35 pips below entry price, and exit level 45 pips above entry price. But you’re not greedy; you just want to bank 10 pips.

You go ahead and set your stop as instructed to let the market “breath.” The order fills; after 20 minutes the market moves and you bank 10 pips, the trade continues on for total 68 pip move. (The signal was right!)

Having good results and seeing accurate signal direction, you take similar trades two more times with the same result; so far you have banked 30 pips. ($300)  You think to yourself “That’s the wife’s minimum credit card payment and it’s only Wednesday.”

Feeling confident in your signal provider’s ability to read the market you take the next trade with 3 lots, identical entry, stop, and exit levels, but this time the direction is wrong, the order stops out;  you lose 35 pips in 3 lots (-$1050) leaving you down -$750 for the week. Did you receive accurate Forex Signals? Yes. (3 winners, 1 loser. 100 pip gain in 4 trades according to provider.) Did you have good results? No!

Granted, the above example is a rookie mistake. (Poor risk management.)  But consider other areas where you as a trader can be taking defeat from the jaws of victory. Do you only trade one or two currency pairs and ignore signals on other pairs? What if you take a losing trade on a particular pair and get an alert shortly thereafter for the same pair; will you take it? What about a week of break-even or negative results; will you continue to follow alerts the following week?

The point is that “accurate” is relative when you’re talking about accurate Forex signals. The accuracy must be looked at over reasonable yet sufficient period of time. You must find a signal service that suits your trading strategy or you must trade the strategy of your signal provider to achieve comparable results to those claimed. And avoid situations like the above example.

Think of it like this: Accurate Forex signals is like a good fitness trainer. No matter how perfect the trainer’s program may be, if you follow the workout regiment but don’t follow the diet plan you’re not going to reach six-pack, Greek-god physic. On the flip side, even a less than perfect program will achieve results if both trainer and athlete are consistent and committed week in, week out, to a good diet and workout program.

You can defiantly find accurate Forex signals, they do exist. Yet, just as there is no pot of gold at the end of the rainbow or magic pill to get in shape; there is no get rich quick, risk free, effortless method to trading currency.  Even with the most accurate signals in the world, you will take losing trades; you will have a tough week or month. It is commitment and consistent adherence to good trading strategy and reliable accurate signals together that turn dreams into reality, goals into achievements.

Defining the Best Forex Signal

What is the Best Forex Signal?

Easy; the best Forex signal is the one that helps you place good trades. But in the sheer abundance of FX Signal providers it can be difficult and costly to filter through the garbage. 

Know what you’re looking for. 

Search for specific features and services that are important to you. Do you need a full charting package or just signals? What pairs do you trade; what pairs will you be signaled too? How will you be signaled; will signals reach you?  What are the stop and exit levels you are comfortable trading with; are these levels compatible with the signals you will be receiving? 

In recent years smart phones have made it possible not only to receive a signal but pull up your charts and place your trade. For most of us this is important since we are not at our computer 24/7. You don’t want to miss trades because you were unable to see or hear the alert. To me this is a must have for any signal service worth considering. 

Forex Signals

Consider you’re level of experience as a trader and the level of information you will be receiving from a signal. Some signals simply alert you to buy or sell on a particular pair. But the best Forex signal will provide you with an exact entry price, stop, and exit level. Additionally, it is extremely beneficial to be alerted to any changes or updates during a trade; look for these types of features. If you are not in front of your charts, how will you know when to move your stops up or exit the trade? Your signal provider should alert you to these changes during a trade. 

How are the best forex signals are generated? 

Reliability and accuracy go hand and hand. The best Forex signal will have multiple ways of alerting you of an upcoming trade opportunity. It will not signal you to every “head fake” or false indicator in the market. The parameters by which a signal is sent must be monitored and adjusted to market conditions every day.  Even a broken clock is right twice a day; a signal provider must stay on top of market conditions, indicators, and announcements. 

Do you want to rely on a program monitoring alga rhythms or do you feel more confident in an experienced team of traders that watch the market 24 hours a day who make the final decision to send out a trade signal. The best Forex signal will take into account market conditions, indicators, announcements and be sent manually by an experienced and accomplished Forex trader. 

Rap up.   

In the business of Forex trade signals you are only as good as your last trade. At the end of the day, the best Forex signal is the one that alerted you to the big move on your favorite currency pair. It’s the signal that gave you the confidence to take that next trade in a tough market. The best Forex signal is the one that was sent by traders for traders who live and die by each trade signal.  Knowing what features you want and need make finding the best  Forex signal a little less challenging.

Looking for free Forex signal software? Buyer beware.

You’re not the only one; close to a hundred thousand people searched for free Forex signal software in resent Google searches. And what did they find? Over half a million results. It’s a virtual sea of catchy names and too-good-to-be-true promises of huge pip returns.

Anyone who has traded the Forex market knows that you do not double or triple your money in 30- 90 days. Yet almost all of these web sites claim spectacular results that would make any Forex trader jump for joy. Who wouldn’t want to turn their $500 into $5000 with guaranteed results?  Personally, I would never do business with a “company” that makes any claim like this. At the very least it is a set up for disappointment.

The other problem is that many of these free Forex signal software providers have websites that look to have been thrown together. You will not be able to contact the “company” by phone. So who are you dealing with? Could be two guys in a garage or a two bit scam artist, either way it’s doubtfull the forex trading advise will be up to expectations. Remember, anyone can start a company and a website with just a little bit of time and investment; they can also go out of business at any time and disappear.

In an ever changing market, it is highly suspect that free Forex signal software or “robot” is going to signal correct market direction. These trading programs are subject to the parameters that they are designed to recognize. Clearly market conditions just a few weeks ago are very different to current conditions. It is for this reason that a program may have some success then suddenly, seemingly, get it all wrong.

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Clearly then, many of the free forex signal software providers are just not worth your time. While the signals may be free, a bad trade (or worse, a series of bad trades) can be costly. Free Forex signal software is usually designed to whet your appetite for the actual program that can be hundreds or thousands of dollars. So rather than try to sort through the nearly 650,000 results of free forex signal software here are a few items to look for and avoid.

Things to avoid:

1. If a promise is too good to be true it is; walk away.
2. Out of state or foreign companies that you cannot contact by phone or email.
3. If the level of risk is minimized or guaranteed. – The company is not being honest.
4. Unrealistic results. If it appears that the free Forex signal software is always right. – There is something wrong.
5. Large ”one time fees” for “complete” or “hands free” trading programs or software once your free period expires. –You will need assistance, otherwise you would program your own robot.

Things to look for:

1. A professional website and the ability to communicate via phone, email, live chat, etc.
2. Live trading team that is actually watching the market and monitoring signals that go out. –Accountability.
3. Trade by Trade results. –You want to see winners and losers. Make sure that all trades are displayed in performance records.
4. Ease of use. –Make sure you will be able to follow along and understand signals.
5. If the signal service provider is an introducing broker (they recommend a broker to you) it should be a reputable Forex broker. –A signal provider must meet the standards of the broker.
6. Look for a positive risk/ reward ratio. Risk management is paramount in Forex trading.

Finally, despite searching free Forex signal software, consider using a paid service. (such as http://www.forexsignal.com/)  Since the vast majority of free forex signal software offers are a waste of time, find a reputable company with a legitimate service. Most of these offer very reasonable rates for trial periods and tend to have better support and overall service. If you are serious about trading the Forex market, consider a 30 day trial to get a reasonable picture of results.

If you do demo any free Forex signal software or paid signal software, make sure to follow closely with each trade signal during your demo. If you are using a demo trading account be sure to trade just as you would if it were your live account.  If you are unsure how to follow the signal get clarification before proceeding. You will want to get a true feel for the trading, risk, and results before you commit to further time with the provider and going live.