FOREX signals: the 5 most frequently asked questions
Starting career as a FOREX trader, many people are looking for a good assistant for trading. While some people choose so-called PAMM-service (investments management), most of them prefer FOREX signals. On the Internet you can often find many "FOR" and "AGAINST" this undoubtedly very popular and necessary service. Let''s try to discuss the five most frequently asked questions about it.
If you trade FOREX successfully, why do you help someone to earn money publishing FOREX signals?
10 of 10! The most popular question of all times. And the answer is, as always, obvious. FOREX signals benefit not only customers, but also a vendor can make a good profit with it. Sometimes, a certain company cannot raise enough funds to invest in their trade because of local laws, or if the maximum amount of working capital investment has reached its local maximum. In this case, how to get additional revenue? Naturally, the yield - the trading signals. In this case, the client once a month pays a fixed amount (in TakeTrend it is $99 per month) and gets the opportunity to trade with analysts of the company. It''s cheaper than investing in companies directly, because you manage your account yourself. By the way, working this way, you can choose your risk level, that suits for you. This is a great advantage for traders that have their own risk-management systems.
What broker should I choose to work with FOREX signals?
Choosing a broker - it''s almost a question of religion. Each person chooses a broker on it''s own preferences. Certainly, it''s perfect if the broker is well known and trusted, but no one forbids you to try to work with talented newcomers in the FOREX market. Anyway, if you work with FOREX signals, it’s good when your broker is identical to the broker of your vendor. In this case, the discrepancy in the quotes will be minimal.
Do I need to monitor signals all-day-long?
It depends on the strategy of trading signals vendor. Sometimes you need to monitor every minute for the releasing of new signals, sometimes every hour or even once a day. Some vendors use different methods of delivering signals. In TakeTrend we use Personal Area, e-mail notifications and Take-A-Trend – our special software for Microsoft Windows.
What a lot should I use for trading?
It depends on the basis of your strategy and risk-management rules. In TakeTrend for each 0.1 lot of open trade we have at least $ 2,000 of our trading deposit. Although, if you prefer more risky and highly profitable trade you can always reduce this ratio.
Why are FOREX signals so expensive?
In fact, professional services of financial manager are much more expensive - pricing starts at $ 5000 per month. Working with PAMM-investment you will have to pay up to 60% of yourprofit to trader. And TakeTrend services cost only $99 per month. Compare these figures - FOREX signals are very affordable!