The Process of Following a Forex Signals Service Provider

Filed under: Learn Forex Trading |

If you have been having any inclinations to follow one of the many forex signals service providers that you will find online, then perhaps I can offer a few words of advice from someone who has been there and done it.

 

To begin with, it is a monumental task just to choose a forex signals service provider. There are so many to choose from, that it is tempting to just choose the one that seems to yield the best results. However, results are not always what they seem.

 

Forex trade results can be displayed in a number of ways. For example, they can be results in pips (which are the smallest incremental move in price on a forex pair), in the percentage rise on a bank, or they can be results in a currency such as the USD or GBP. The most misleading and one of the most common ways that forex signals service providers display their results is by pips. This is misleading because, say, one thousand pips could equal five thousand dollar, or 10 dollar, depending on the lot size. Therefore, results can be incredibly misleading. Try to work out the results based on actual money rather than pips – as this will be more representative of the value of a service.

 

Once you have picked a service, the next thing you should do is read online reviews and forums that talk about the signals service provider. If the reviews are generally favorable, then that is another box ticked.

 

Next, you can sign up to the service and follow the trades on a demo account. If your results match the results that the service provider is publishing, then that is the final box checked and you can be fairly confident that the results published are reliable. Work out the maximum drawdown of the service and set your bank up as appropriate. It’s as simple as that!

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