What are Forex signals?
Forex signals are suggestions for entering a trade on a currency pair, usually at a specific price and/or time. The signal is usually generated either by a human analyst or an automated bot supplied to a subscriber of the Forex signal service.
Now if you've been on your Forex journey for at least a little while you've probably come across some sort of signals service, you probably thought to yourself “if this works why doesn't everyone do this?” and you were right to ask that question; the fact is trading with signals don’t work for everyone it’s a very personal act and varies from person to person, just like trading based on your own analysis. There are many factors that can come into play when using signals which you will have to assess for yourself:
1) Faith: How much faith do you have in the signals provider? This is important because you have to be confident in every trade you place, if you aren't you risk jumping out of the trade too early because of fear and this leads to people making losses and losing out on profits and then blaming it on the signals provider.
2) The Signals Provider: Before you decide to go with a signals provider make sure they have a track record of producing a high standard of analysis on a consistent basis, this proves their reliability and therefore allows you to have more Faith in them (see what I did there).
3) Your Personality: Are you the type of person who likes to take a look at things and make trades based on their own analysis, signals might not be for you, however you could use signals in conjunction with your own analysis.
So there you have it, Forex signals can work for some traders just make sure you take all the necessary precautions before you decide to sign up for a signals service.