In the modern time, traders have made use of analytics and signals as they are becoming more and more popular as every year passes.
For the amateur traders, it is very useful for them as it helps them know more about profitable ways they can enter the market.
There are a lot of resources that offer both free and paid analytics and trading signals in the FX market as well as social trade and automated copying.
However, the following should be pondered:
How real is it to make profits by the use of such signals?
Can the analytics have any effect on the result?
Then, how do you know the analytics and signals you can trust?
Making Profit with the Use of Signals and Analytics
Have you looked at the available resources that provide copy trading and signals, you will see that it can be difficult to find the ones that are of good quality. Most of the brokers already offer all these, whether it is a copy or social trading, analytics or signals. Given that most of them are bucket shops, it is likely that their special signals will end up making you lose your deposit sooner than later. Then you will have them contacting you and wanting to re-convince you to give it another try with the hope of getting it right the next time.
Don't be a fool, brokers that are well regulated should not normally provide tips and signals for you and when they do, know you are in jeopardy. Furthermore, even when these brokers offer you general information, you are still at risk using it since the only time it comes live is once or twice in a day. Avoid such signals no matter how enticing you might think they are.
Copy Trading and Live Signals
Avoid these services as it is designed for the masses. It puts its quality and reliability in doubt. If they have such a super system and sell their signals for a few dollars, why haven't all the subscribers made a huge profit? Even if it is profitable such an account can shut down at any moment because they suggest traders to merge. You might want to subscribe to a lot more signals that you feel are conservative but you should know that these statistics are not that hard to fake especially as they do not have test periods.
You should also note that when you make use of trading signals that are automatic, you are in essence allowing your money to be managed by someone else. Is it a single monitoring, which can yet be faked, that would suffice for you to hand over your money to be managed by an invisible person. What you can probably do is to place small amounts in several signal providers, but that again is a gamble, though the risk is reduced.
Live Analysis, Forex Signal Groups or Chats
This type is better and maybe should catch your attention. They have a limited number of subscribers with a more personalized approach and thus what you get from it is likely to be of good quality. But again, this is not a guarantee even if you are in this group and make payments for the signals; your profit earning is not assured.
Identifying Those That Provide Quality Analytics and Signals
We have already mentioned that finding signals for trade is easy, what is hard is earning money with them. Basically, what you need to know it to be able to identify the scammers and avoid them:
Look for a minimum of six months statistics:
It doesn't matter if it is monitoring or just a statement as both can still be forged. However, it is going to show that the provider is at least serious in a way since six months is a long period. A lot of people won't have so much time to forge the statistics.
Test the signals for a minimum of two weeks:
This will give you sufficient time to know how the analytics and signals work and at least examine the results. With that, you can judge their product quality more accurately.
Check if the entire signal and analytics are live:
Since the market is always changing, then it is critical that everything should always be online so that the signals and analytics will constantly be fresh and recent.
Avoid signals with a high yield of say 600% and above:
The average expected yield should be somewhere between 70 to 80% every year.
Check for the justification of the signals, even if brief:
This brings in logic to the inputs that you find helping you to understand it and also learn from the professional traders, except if it is an automatic copying.
Good quality signal providers are scarce and they often charge a very high fee.
You can find some at trustedforexbroker.com .
It is important for you to be stringent and critical about assessing all data and any commercial offer for signals or analytics. It is your money we are talking about here. In all honesty, if you can, avoid the whole analytics, signal and copy trading stuff. Gathering from the experience of so many traders who have used this tool, not a single person have really succeeded except by chance. A lot of them have made use of several resources and services. It might just be better for you to concentrate on asset management or even undertake a professional trading course on forex and build your trading skills.