Scalping the forex market can be a daunting task for a novice trader, especially considering the high level of technical skill, focus and time required to succeed in this fast-paced trading style.
That is not to say beginner traders need to be experienced to take full advantage of the many opportunities the forex market offers. Forex signal providers have become increasingly popular over the past few years and have helped many traders identify the best trading opportunities at the right time.
However, there are many forex signal providers out there, and not all of them have your best interests at heart. So, in this article we will delve a bit deeper into the world of forex scalping signals and discuss whether these signals are worth it, what indicators they are based on, and what to look out for when choosing a scalping signals provider that is right for you.
Are Forex Signals Worth It?
Forex scalping signals are trade recommendations made by a third-party service that can help a trader with the following four crucial decisions:
- Which Forex pair to trade
- Whether to buy or sell a forex pair
- When the best time is to enter a trade
- Where to place a stop loss and profit target
These four decisions eliminate all the guesswork required to find profitable trading opportunities, saving you time regardless of your experience level.
Not all forex scalping signal providers are reliable or offer high-quality signals. Finding a reputable signal provider should therefore be your top priority to make this worth your while.
A forex signal provider that has a proven performance record based on expert analysis and comes with good user reviews are essential requirements to help you increase your profits from scalping.
What Are Forex Signals Based On?
Reliable forex scalping signals are based on proven strategies that have high percentage win rates. Signal providers often have many strategies to choose from based on various scalping indicators.
Indicators such as the Smooth Moving Average (SMA), Bollinger bands, Stochastics, and Relative Strength indicator (RSI) are amongst the most popular indicators used to provide scalping signals.
When a trader subscribes to a forex scalping signal service, they can receive an SMS or email with the trade recommendation and proceed to enter trades themselves manually.
Some signal providers also offer fully automated signals whereby all trades are automatically executed on your trading platform – this is also referred to as copy trading.
More technically experienced forex traders may opt to develop their own forex scalping strategies and signals based on the scalping indicators mentioned before or even code their own algorithms to take their trades for them automatically.
Knowing what strategies these scalping signals are based on and under which market conditions they typically perform best can also benefit beginner traders by expanding their knowledge of the forex market.
Where Can I Find Forex Signals?
Most online forex brokerages offer forex scalping signals or use third-party providers, but not all of them might be the right choice for you. With so many brokers available, it can be a difficult task to select the best signal provider while avoiding possible scams.
Here are a few critical factors to consider before choosing the best forex signals provider.
- Experience – A good forex signal provider should have been around for a while, with a transparent and consistently profitable performance record to back up its claims.
- Easy-to-follow signals – If you are following trade recommendations delivered by SMS or email, they should be easy to understand and follow. Good signals providers will make everything as easy as possible and guide you through everything you need to know.
- Quality and not quantity – Trading more often is not necessarily going to make you more money. Successful scalping strategies require high win rates to remain profitable over the long run while only trading the highest quality signals to turn a profit consistently.
- Automation or not? – Not all traders will have the time to manually enter all the trade recommendations offered by a signal provider. Choosing a scalping signals provider that caters for your specific time constraints is an important decision.
Forex scalping signals providers that do not meet the above criteria are best avoided, and it might take some time to research all the signal providers in which you are interested. Still, it will definitely be worth it and probably save you from losing money.
You might even come across free signal providers, but one has to question the quality of such signals. Most forex signal providers offer paid monthly or yearly plans which is another important consideration you need to be aware of before you commit.
The best piece of advice when it comes to any service, free or not, is that you perhaps try out the forex scalping signals in a demo account to see whether the profitability claims are legitimate. Keep in mind that there will be losing trades; this is just part of trading, so it is essential to have reasonable expectations before starting trading.
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Forex scalping signals are meant to provide traders of all experience levels with consistently profitable setups that are based on proven scalping strategies. Here, we have discussed the importance of finding a reputable signal provider, what forex signals are based on and where you can find forex signals.
Deciding on the best forex signal provider is the first important step you need to take to avoid scams and increase your profits from scalping while saving you time.
Hopefully, the process of choosing the forex scalping signals provider that is right for you will be a more straightforward endeavour after reading this page.
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BlackBull Markets is a reliable and well-respected trading platform that provides its customers with high-quality access to a wide range of asset groups. The broker is headquartered in New Zealand which explains why it has flown under the radar for a few years but it is a great broker that is now building a global following. The BlackBull Markets site is intuitive and easy to use, making it an ideal choice for beginners.