If you are wondering how to choose 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 doesn’t matter what system you are using or how the program is modeled. The most heavily marketed forex signals are those generated by automation.
This is a consequence of people attempting to maximize their income from sales commissions rather than giving advice that is in the best interest of the trader. 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.
Just because investors are facing with a recession today does not mean that things will be that way in the future. 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. Of course, even when going this route, you should understand that not all investors possess the same ability. When using a human to generate signals, consider the following:
1. The signals in question should arrive in real time. An analyst must have access to data as soon as the events it reflects takes place. Someone who is following a real trader’s activities needs to know what the trader did just now, not an hour ago.
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. Consider Auto trading. Auto trading allows you to trade signals without you being at the computer.