Tips For Using Free Forex Signals to Boost Your Forex Profits

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Free Forex signals are all the rage these days. Lots of sites offer them, but how do you know they are all genuine, and provided by professional Forex traders? How silly would you feel if someone was just tossing a coin, and if it was heads, he would advise to buy, and if it was tails, he would advise to sell?
This raises an important issue, and that is that it is very important to use a demo account in any case to test out any free Forex signals. The provider may make wild claims about the performance of the signals, but it is first necessary to test out these claims, and to use the signals on a demo account before trading on a live account. The question is then, how long to trade on a demo account before using them with real money. In my view, it is necessary to have 3 consecutive profitable months using the signals – only then can you have any confidence that the trade signals will be profitable.
A further thing that you need to check is how recent are the prices that the free Forex signals relate to. What do I mean by this? Well, when you receive the signal, you need to know that the provider has just this minute sent the signal, and that the advice that he has given, is still valid. For instance, if the signal is that you should buy GBP/USD at market, and to take a 50 pip profit – you need to know exactly at what price he was advising you to take the trade.
This is vital – as if he wanted you to buy at 1.6050, and to exit at 1.6100, but you only received the signal when the price was at 1.6080, then you might lose out on the trade, despite following the advice precisely. For this reason, it is recommended that when you receive trade advice like this, you ask the provider to tell you exactly what price is the market price when he sends the email. This way you can see how much price has moved. This is crucial in the Forex market, where price can move very quickly in a very short space of time.

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