With the Forex market operating around the clock all over the world, for a Forex trader to be highly successful, not only does he need to invest money in the market, he is also required to invest time to look out for favorable entry and exit points in the market.
The use of automated trading robots in helping to execute trading orders only covers part of the job of securing a profitable trade.
List of the Best Forex trading platforms
The other part includes studying the market and isolating the profitable entry and exit points that will be preset into the automated trading robot.
Nevertheless, there is still a limit to what we human can do when it comes to studying a 24 hours market. We will still need to sleep and while we are sleeping we may miss out on trades that might have been profitable.
With regards to this situation where time is limited for analyzing the market, Forex traders can sign up for Forex forecast signals to help alleviate the problem of time constraints.
Instant Alerts to your Phone or Inbox
Forex forecast signals are services that are provided by companies that monitor and research the Forex market. The updates that they sent out to their clients via email or SMS to the mobile phone are known as “signals”.
These Forex forecast signals essentially comprises of information regarding trends in the Forex market gathered from using technical analysis tools like Fibonacci levels, moving averages, stochastic lines, oscillators or support levels & resistance levels.
With the analysis made about the market using these tools, the signals generated will indicate to the Forex trader when to make a favorable entry into the market.
In short, Forex forecast signals are also recommendations by a forecast signal provider about the entry and exit point of trades that can be made if you choose to follow their advice.
These professional forecast signal providers use both fundamental and technical analysis in order to generate the Forex signals. Technical indicators like Simple Moving Average or SMA are used for buy signals or sell signals when prices goes above or fall below the SMA respectively.
Because these professional providers use a wide array of indicators and analysis to form their conclusions, they usually do provide reliable signals that will indicate how the market is acting.
Warning: Signals are Not Always Accurate
At the same time, no Forex forecast signals provider can claim to be 100% correct all the time. To select a dependable Forex forecast signals provider, you have to check their track records in order to gauge how reliable their signals are.
In addition, most Forex forecast signals providers only offer signals for the major currencies like EUR/USD, GBP/USD or USD/JPY. Their basic service usually starts from email alerts for entry and exit signals to Forex traders.
In addition, automated trading program can also be tied to these signals as well taking away the need for a Forex trader to constantly analyze the market.
While, no doubt Forex forecast signals can save a Forex trader a lot of work and time in analyzing the market, a Forex trader will still need to develop their own trading strategy. Forex forecast signals should regarded as just analytical tools that one help one to be better inform about the Forex market.
Recommended Forex Forecast Signals
I have tried a few Forex forecast signals and to be honest I have found that a lot do not match up with their promises.
Sure, they may go on a run of several profitable trades but then that is quickly undone by an even longer run of losing trades. It can be a bit of a minefield!
However, there is one US based company I have used that I can recommend to you. They will not be successful on every signal alert but they certainly tend to get more right than they get wrong.
They are called Netpicks and the best thing is that you can get a free 2 week trial of their services. This means you can test them out before you risk your hard earned cash.
Being US based they will charge you in dollars when you take their paid service but that is nothing to be concerned about as your bank will automatically convert it to British Pounds.
So, Netpicks are definitely worth a try as with free forex forecast signals, what do you have to lose?
If you would prefer to utilize some automated software to help you retain some control over the signals