Photo: Google Image
While a signal service is essentially a real-time tip or advice to help with trading strategies along-side Forex brokers, they can still be broken down into different types of Forex signals:
News Trading Signals
How will a market react to a piece of news? If there is a significant movement in a currency pair or something likely to cause a change in the markets then you need to know this, and you need to know it fast. This requires quick reactions and a reliable service that can get that news to you in a hurry. The initial response is where the most profit can be made before the markets settle back down again.
Using various forms of data, including trends, technical signals are more advanced and rely on technology. Technical signals are significant and have their part to play, but you have to be careful of other factors like market news. No matter how accurate your signals are if something happens in the markets the trends of a currency pair won't be relevant.
General Trade Signals
Different providers will offer different types of trade signals. The quality of these signals will depend on the service that you subscribe to. If you are looking for general trade signals there are plenty of providers that will offer this. The trick is to find one that provides the data in a timely and reliable manner.
Just like Forex brokers, there are also differences between signals services. Some traders subscribe to a particular service where the real-time analysis comes from one source or maybe multiple sources. If you want to go the whole hog and have the trading signals provided and the trades executed, then you need to use an automated trading robot. Another growing trend is copy trading or social trading. This is where you copy the trades of a successful trader, but this does come with risks just like any form of trading.
Reprinted from Expertinvestor, the copyright all reserved by the original author.