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Despite the introduction of fully automatic trading system, many traders still feel inconvenience about letting a software manage their funds; but on the other hands, they aren’t confident enough in their skills either, therefore they need suggestion or advises from an expert. A reliable forex signal service provides ideal solution for this problem; it offers trade suggestion, but the user still can analyze some more and decide by himself/herself if he/she should execute the order or not.
There are many options available if you’re looking for forex signal service, but beware that some of them are scams and following these scammers’ signals will only lead to disaster. Below are a few helpful ideas when choosing a good signal provider:
1. Never trust forums
While forums can provide a good place to ask questions and get answers, the answers are not always from credible source. You’ll constantly find negative and positive reviews about a service, but you will never know the story behind it.
Every day, there are many new player in forex and they always come with high expectation of quick profits; when these guys can’t have it, they will blame it on the system (signal, robots, strategies, etc) and flood the net with their stories. Sometimes, they experienced 2 loss trades and instantly claim that the system don’t work; note that if you have a trading system that can give you 10 winning trades for every 15 trades, it’s not impossible to have 2-3 loss trades at the beginning.
2. Money and risk management
Usually risk management in the form of take profit and stop-loss orders are already handled by the signals, but you should manage your own money. As mentioned above, it’s not impossible to start your trade with losing streak. This is possibly because of the signal’s provider incompetence or you just chosen a bad time to start trading. Whichever the case, you must recognize your own limit and restrain yourself from betting all your money in a single trade no matter how high the winning chance is.
3. Recurring cost
When you subscribe for a forex signal service, you’ll be charged with monthly fee. Estimate your monthly cost and predicted profits carefully before making any decision. A number of signal services fees are about $100/month, therefore you will want no less than that much profits per month. In this case, using $100 mini account clearly is not recommended, so if you can only spare that much, it might be better to change to another method.
4.Practice account
Like other trading system, you’ll need to test the signals in a demo account before putting your money on the line. This could appear to be wasting time and money for the monthly fee, but it’s better than losing your whole capital in a live account.
If you’re a trader that won’t let an EA handle your trades but don’t want to analyze the market on your own, forex signal service is the best alternative. If you are planning to use this service, ensure that you’ve prepared for it and test it first to find out how it works against real market movement.
Lost between so many signal services? See the details of Matthew’s best recommended signal service on Forex Automoney review. Look at other alternatives to get winning trades constantly in top profitable system.
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