There are several reasons for the increase in the use of live Forex signals. A beginner and an expert both derive benefits from the live Forex signals. These signals also serve the purpose of education. These are provided by a third party, maybe in the form of an automated service with many technical indicators. The reliable Forex signal gives a real-time accuracy of around 90%.
What are Live Forex Signals?
Forex signals are the alerts that are meant for a trader having information regarding currency pair trades. The signal notifies a specific price and gives the trader an idea about what action he/she needs to take, i.e., whether to buy or sell. The enriched signal also states a stop-loss price and a profit-taking point. That is, it helps the trader to make an informed decision regarding buying and selling. Better signals use many indicators. There are free signals and signals which charge the fee. These signals are delivered to the trader in different ways, such as email, website updates, and SMS. The advantage of live forex signals includes:
- Limiting the risk involved in a trade.
- Monitoring the market.
- Helping to make an informed decision.
Why use live Forex signals?
There are several reasons for using live forex signals, and those are Education, Time, Diversification, and Earnings.
In education, it helps a beginner to learn the enter and exit in the trades.
Time–Saving – Many of the traders generally do not have time to trade throughout the day. The live forex signal provides them with information on trades of more active traders. They can then make a decision based on this information.
Diversification- It helps the traders in portfolio diversification with many styles, timeframes, instruments, and methods.
Earning- More experience gives a better skill set, and the trader can sell his/her stocks based on forex signals for getting extra income.
How to find Live Forex Signals Meta Trader 4/5?
One of the widely used trading platforms is Meta Trader 4/5. The reason for its growing use is its stable and secure nature. The Meta Trader 4 and 5 trading platforms give the trader access to the number of signal providers. It requires the opening of a live account or a demo account. Then the user has to select the Terminal window, and the signal would be flashed on the screen.
To access the live forex signals, the user has to open an MQL5 account. After opening the account, there are two options- a subscription for the live forex signals with a fee, or the user can use free trading signals (Demo account) to learn the working mechanics involved in it.
How to determine the best Live Forex Trading Signals?
The multiple data points are generally taken into consideration, which helps the trader to analyze whether the live forex signal is good or not. These points are-
Growth Curve– the percentage growth the signals have been able to achieve in their lifetime.
Number of Subscribers- The density of the subscribers who copy the trading signals is also an indication of reliability and usefulness.
Weeks- The operation period of the trading signal is in terms of the number of the week.
Funds Involved- How much the amount of capital is involved in that trading signal.
Profit factor Skewness- It shows whether the frequency of occurrence of gross profit exceeds the frequency of total loss. The more significant the skewness towards the gross profit, the better it is.
Percentage Drawdown (DD)- It is the maximum percentage drawdown that has been produced by the trading signal.
Last but not least is customer care support; whether the trading platform provides customer care support or not, it matters a lot.
The most tempting of these is the percentage growth curve. Many of the investors generally commit a mistake by just filtering all other factors and giving importance only to the percentage growth curve of the trade signal. It may lead to compromising the stability of the trading signal. There could be chances that the high growth rate may not have a high number of weeks of operation, but on the other side, there could be a trading signal which has stability with a high number of weeks but with a moderate growth rate. The surfing of the trading signals would provide a more detailed and comprehensive analysis.
Using the above-mentioned parameters, one can come up with useful information to go ahead.
The experience of active traders can provide a trading signal that could offer an advantage in terms of education and portfolio diversification. The Meta Trader 4/5 can be used by the traders using the Terminal window in the trading platform. In this window, the trader can even open the MQL5 account for accessing the trading signals. After gaining experience, the user can also become a registered trading signal provider.
The traders should consider all the parameters discussed above rather than making a decision based on one or two parameters only. The stability of the best forex signals provider carries a lot of importance. The beginner can learn using a demo account. Such learning would be free from the risk and would surely induce confidence in the trader.
There are generally more than 80 plus currencies trade available on such trading platforms. These are in terms of forex major, forex minor, and exotic currency pairs.
While the information provided in the article is meant to assist the user, it cannot be the only information upon which a user should rely. With the analysis and exploring the trading signal, more information will help the user significantly. The deeper one will go, the better he/she would be able to understand the dynamics of the trading platform and signals.