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February 17, 2014

Should You Rely on Forex Signals from a Service?

Use of Forex Signals

This article looks at the reliance that you could have on forex signals from a service.

There are many traders who consider the use of forex signals from a service.  However, when you do this you should consider whether or not you should be relying on the forex signals that you are getting.  You should consider the problems that you can face when you become reliant on the forex signals that you get from the service.  You also need to look at the signals that you are getting, when you are getting them and whether or not they are helping your trading.

Being Reliant on Forex Signals from a Service

There are a number of problems that you can face when you become reliant on the forex signals that you get from the signal services.  The first problem that you are going to face is that you cannot complete analysis of the market yourself.  When you are unable to complete analysis of the market you will never be able to change the way that you trade.  This means that if you out grow the trading that you are currently using you will not be able to do anything about this.

Another problem that you face when you become reliant on the signals is that you cannot set up a trading strategy.  If you trade solely on the signals that you are getting from the service then you will not have a trading strategy.  This is due to the fact that the signals you get from the service will not follow a strategy that you choose.

The last problem that you find with the reliance on forex signals is that you will not be able to determine whether or not you are opening a good trade.  Traders who blindly follow the signals they are given will not complete analysis of the market.  This means that the traders are not going to be able to determine whether or not the signals are good.

The Signals You Are Getting

If you are going to be using signals then you have to consider the signals that you get and how they can be used on the market.  There are some services that will only offer you the entry signal.  This means that you will not know when you should exit the market for the maximum profits.  This is a major problem if you are reliant on the signals as you will always make a loss on the market.

When You Get the Signals

The signals that you get from the service will be time sensitive and you need to consider this.  You should also look at when you are getting the signals.  If you are not getting the signals within your trading hours then you are going to have a problem when you need to trade.  If you are reliant on the signals then you are going to be trading during hours when you should not be.

Are They Helping Your Trading

An over reliance on the signals that you get from the service will lead to losses in the long run.  There is no way of knowing how the signals were created and you cannot guarantee that you will make a profit from them.  It is best that you combine the use of forex signals with the other trading that you are going to use.

 

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