If you are wondering how to decide on Forex signals, pay close attention. Forex signals come in two categories:
1. Those created by computer automation
The most worthwhile Forex signals are created by humans… real traders who are at the top of their game. These are always more useful than signals generated by automation.
It does not matter what system you are using or how the program is modeled. On the other hand, automated Forex signals tend to be even more popular than those created from an investor’s mind.
They are cheaper to get and easier to understand. Unfortunately, automated systems do not have the capacity to respond to the latest market changes. And even if programmers update their algorithms to meet the latest trends, there is still no guarantee that the model would be effective five years down the line.
Few if any forex traders do well on the basis of automated signals. For someone deciding how to pick forex signals as the basis for their own trades, the first step has to be eliminating the automated data and focusing attention on the signals generated by human beings. The trader next evaluates the quality of human-generated signals based upon a number of criteria.
1. Whether or not the investor is able to deliver their information immediately. The most effective signals are sent as close to the minute as possible.
2. Do not receive your signals in a “vacuum.” Investors should also give you articles, webinars and other resources for understanding how to use this information. If they don’t, they may be expecting you to rely on them for their expertise. This only helps their pocketbook, not you.
3. Some traders want an AUTO trading option. This makes it possible to program the system to trade automatically on the signals received. Someone who pays for a forex signal subscription may need the capability to “flip a switch” at times and still get a return off their investment.