If you are looking for ways to make money on the internet, and especially through forex trading, you have probably heard about forex signals online. But do you know how to use them to keep your risks low and profits high?
First of all, forex signals online could be much more profitable than direct forex trading, especially for certain groups of traders. If you are relatively new to forex or if you are an emotional or risky person who likes to take chances – using forex signals online can help you minimize risks and maximize profits. Try to be honest when assessing your trading skills and your risk tolerance. What if you could copy trades of famous traders the same second they open them? Will it help you make more money?
Forex signals online are buy/sell orders sent to your trading account at the time trader you have chosen to follow sends them to his account. Because everything is done through the copy trading platform, the orders are sent and received very fast and don’t require any actions from a trader. If you are too busy to check and react to the market news, or if you are not good with fundamental or technical analysis, forex signals online can help you save both time and money. The idea behind forex signals is not new—people were searching for and following investment advice all the time since the market was invented. However, up until the 21st century it was less effective, because receiving the information and then executing the same trade manually used to be taking too much time. Automated copying of forex signals online have resolved the issue. That’s why copy trading (also called social trading and forex signals trading) have grown so fast with the development of technology.
Today even brokers see great potential in this niche and invest in social trading networks. A copy trading platform that offers free forex signals online helps brokers find more clients, so brokers make agreements with reliable services and share part of their spreads. Signal providers are then compensated for their services through part of those commissions. For traders it means that high quality trading signals online can be provided at no extra cost.
However, not all copy trading platforms are created equal. It is important to find flexible and reliable service provider with excellent selection of forex trading strategies to copy. Make sure there are experienced traders with stable profitability and low volatility. Otherwise the strategy will be hard to follow. Always check which data is disclosed and how long the strategy has been executed for. When choosing whom to follow, try to avoid new and extremely volatile strategies. Accuracy with which forex signals online are copied is also very important. If trading signal gets lost or delayed you may have different results from those of a signal provider. To avoid this and maximize your profit potential, look for copy trading platforms that let you set maximum slippage and custom stop loss / take profit levels. If you control signals accuracy manually, the trades with higher price deviation from original signal will not be copied.
One more important factor is selection of supported brokers. If a copy trading platform only supports one broker with high spreads and commissions, you may end up spending too much money on those fees. But who wants to pay extra money for things we can get at twice lower prices? The difference in spreads becomes especially notable when you follow active strategy with lots of open trades. A savvy way to benefit from forex signals online is to choose free forex signals platform, such as MyDigiTrade social trading network, that partners with several well-known discount brokers. For many people, forex signals can be a great way to make money if used wisely. The best part about them is that they don’t require any additional investments to try.