There are two broad categories of forex signals:
1. Forex signals generated by automation
2. Forex signals generated directly by real traders (real human beings)
The cut straight to the chase, the most profitable forex signals are those generated by traders who are still actively trader - these ALWAYS beat out signals that are generated by automation, regardless of the system the automation is modeled after and regardless of how well programmed (and back-tested) it is.
However, forex signals generated by automation are marketed far more heavily than those generated by real traders. This is really more a matter of people trying to maximize their profits from sales commissions than what is actually best for the trader. Automated signals can not respond to changes in the market due to news events or even to the natural drift that invariably occurs. They are also limited to one of a few trading strategies. I've never known anyone who made really good money at forex using automated signals.
So, the first step in looking for the most profitable forex signals is to eliminate the automated signals and concentrate only on the human generated signals.
The second step is to evaluate the quality of the human generated signals. Here are some important considerations:
1. The signals should arrive in REAL TIME - as close to instant as possible. Timing is very important in forex trading and if you are going to follow what a real trader does, you have to get the signals "instantly."
2. You don't want to receive signals in a vacuum. Look for tutorials, webinars, articles, forums, etc - i.e. you want to get an education, not just signals in a vacuum. This an explanation of why a trader is choosing to do things they way they are doing them. It is best to also have a place to ask questions and also perhaps interact with other forex traders who are using the same signals.
3. Not everyone agrees on this point but I like to have the option of AUTO trading. In other words, you can set the system to automatically trade the signals you are being sent (with some safe guards in place of course) which you are not around. While I do want to learn, I am very busy and I can't stay glued to forex trading all day long. If I pay for a forex signal subscription, I also want the benefit of just being able to "flip a switch" and make some good money from it.
1. Forex signals generated by automation
2. Forex signals generated directly by real traders (real human beings)
The cut straight to the chase, the most profitable forex signals are those generated by traders who are still actively trader - these ALWAYS beat out signals that are generated by automation, regardless of the system the automation is modeled after and regardless of how well programmed (and back-tested) it is.
However, forex signals generated by automation are marketed far more heavily than those generated by real traders. This is really more a matter of people trying to maximize their profits from sales commissions than what is actually best for the trader. Automated signals can not respond to changes in the market due to news events or even to the natural drift that invariably occurs. They are also limited to one of a few trading strategies. I've never known anyone who made really good money at forex using automated signals.
So, the first step in looking for the most profitable forex signals is to eliminate the automated signals and concentrate only on the human generated signals.
The second step is to evaluate the quality of the human generated signals. Here are some important considerations:
1. The signals should arrive in REAL TIME - as close to instant as possible. Timing is very important in forex trading and if you are going to follow what a real trader does, you have to get the signals "instantly."
2. You don't want to receive signals in a vacuum. Look for tutorials, webinars, articles, forums, etc - i.e. you want to get an education, not just signals in a vacuum. This an explanation of why a trader is choosing to do things they way they are doing them. It is best to also have a place to ask questions and also perhaps interact with other forex traders who are using the same signals.
3. Not everyone agrees on this point but I like to have the option of AUTO trading. In other words, you can set the system to automatically trade the signals you are being sent (with some safe guards in place of course) which you are not around. While I do want to learn, I am very busy and I can't stay glued to forex trading all day long. If I pay for a forex signal subscription, I also want the benefit of just being able to "flip a switch" and make some good money from it.
