Except for the actual execution of trade entries, Forex signal services perform all of the functions of a robot.
A “professional” trader may generate trading signals (for a fee, of course) for clients to act on, in addition to possibly using an automated program.
Forex Trading Signals
You may, however, be paying for a signal for which you have no idea what the rationale is or how the “professional” came up with it.
You have no idea what the trade is based on; all you know is that the “professional” says it’s a good time to buy or sell.
Finally, you’re relying on a third-party source’s analysis rather than your own.
In a typical forex signal service, the programmer creates a set of technical indicators and rules, which are then followed by the program.
If the price action meets the signal service’s criteria, the user will receive an email or text message with a notification or alert to react.
The user must ultimately decide whether or not to take the signal and trade it.
While it may appear that you have more control over whether or not to trade, the signal service is still programmed to follow a set of rules.
As we previously stated, the forex market is constantly changing.
While the forex signal service has historically been profitable, there is no guarantee that it will continue to be profitable in the future.
Another thing to consider is why would the creator of the forex signal service want to share the profits if the service is so profitable?
The scam isn’t the service itself, like with forex robots, but the way it’s marketed.
You may come across advertisements from con artists promising you a million dollars if you use their signals.
Many traders would say to themselves, “A billion dollars!?” when they see the advertisement. With a billion bucks, I could do whatever I wanted!”
Now come to a halt. Consider that for a moment. Massage your chin or your lip. Think.
If such were the case, why would anyone bother with forex signals in the first place? Instead, they should concentrate on trading with their signals and amassing a fortune for themselves.