In this video, you will learn about selecting the right Forex signal providers. For new Forex traders, one of the best ways of learning the profitable techniques is to see them in action. However, every Forex trading beginner does not have the benefit of having a Forex mentor. Such individuals, fortunately, have the option of signing up with Forex signal providers and see their skills at work while making money. Forex signal providers will send technical signals to your trading system for a small monthly fee. Since there are so many Forex signal providers active in the Forex market and everyone may not be ideal for you, the trick is to find the right one.
Historical Success Rates
Most systems that support signal subscriptions will give you access to the success rate of various Forex signal providers. Success rate is basically the percentage of signals that win of the total that the signal provider sends out. Ideally, you should not settle for signal providers who boast of a success rate less than 80%.
Use of Special Orders
Regardless of how successful some Forex signal providers are, unless they provide information on the use of special orders with each of their signals, you should give them a wide berth.
Varying Timeframes
Different traders use different timeframes to trade in. Moreover, different traders also have different trading styles. Therefore, when you are selecting signal providers, you have to ensure that the timeframe they provide signals for, match the timeframe you want to trade in. This is important because if their timeframes are larger than yours, then you can be sure that they are trading with more money than you. Therefore, while their large capital has protection from drawdowns, the same may not be true for you and your account may get wiped out by a movement of only a few pips.