There are numerous Forex Signal Sites and Blogs where daily/weekly signals/analysis are published. Also we’ve heard so much about Automated Systems or Forex Robots. So many aspiring traders rely (in one way or the other) on these signals for Trade Enteries or as compliments to their personal trading systems, which in my opinion is not a bad idea.
The question so many people have asked which I want to answer is this. “How can I tell with reasonable certainty a reliable Signal Provider?”
Before relying on any Forex Signal or Signal Provider, check their features for the following “very important” requirements:
- A good signal provider must indicate the trade details of the signal, that is, where to place “stop loss(S.L)” and “take profit(T.P)”. Trading without S.L or T.P is suicidal. Never do it.
- Secondly, a trade signal from a signal provider must have a good risk/reward ratio, which means that if you are risking 1pip, your target MUST be at least 2pips or more.
- Lastly, a good signal provider MUST indicate the percentage(%) of your account that you should risk per trade.
The summary is that, to trade successfully and join the 10% successful traders, good Money Management Strategy must be in place. Your Money Management Strategy is even more important than the nature of the Trading System you are using. Also, the best and only way to eliminate your emotions during trading is to have a good Money Management Strategy in place.
Unfortunately we don’t have too many Signal Providers that has proper money management strategies inculcated in their Trade Signals. We see signals where you are asked to risk 100pips for a 50pip profit. That is what I call suicidal trading and not Forex trading.
By God’s Grace, I run one of the few Signal Provider Network with all the Money Management Features listed above.
Good Luck and God bless you all.