All About Forex Signals - What is it and What's the Cost Like?

Posted by Rafia / at 7:44 PM / /

A good way to make money in Forex is subscribing to a service that provides signals. How this works is you normally join a chat room with other people and there is a MENTOR giving out BUY or SELL signals and you follow them. Now many people use this type of service for either confirming there own technical analysis, so if I predict a BUY and the mentor says enter long then this confirms my analysis and so I go long (BUY). A lot of new people also sign up to these services and they just follow whatever the mentor says, but the mentor isn't always correct. You can also learn a few things from following along.

The cost for most of these services are pretty expensive. The people who lead these signal rooms normally have some years of experience, the cost can be from $200 - $300 per month. This isn't really the best option for someone with a small trading account. Most the smaller trader cannot afford that price so they look towards the more cheaper ones for like $50 per month which only gives you the entry points e-mailed to you and no chat room. This can be helpful too but most likely they are not as experienced as the mentors are, and you cannot ask questions in a chat room.

Now if you have a large account that means you can most likely afford these types of services. But for the smaller traders and new people you can find places that offer the signals via e-mail for a small fee. These places also give warnings that they are not response for what happens etc, you get the picture. So its still good to know the basics and how to trade the Forex instead of just following someone e-mails whom you know nothing about. I myself use signals to help me confirm and double check my trade entries. Its not a bad thing to have if you just need another confirmation for entry. This also has to do with emotions, you are unsure if the prediction you're doing is right so you go for another opinion.

You can definitely make money from Forex signals, I know someone that trades on nothing else but signals. He once showed me one of his accounts with $13,000 balance and he started with $5,000. In just 3 weeks he generated that just by following Forex signals. He still uses a cheap signal subscription to this day, he gets his signals via e-mail and just follow those. E-mail signals normally are sent once the person has entered or finished projecting the entries, which are normally early morning 12AM-2AM, you have to get in as soon as you get the signals or when the market has hit one of the indicated entry level. He is a regular technical trader and he uses his techniques to support the Forex signal before deciding to jump in on the entry, there after it's up to him to manage the trade if its going with or against him.