The ever increasing use of Forex signals as a guide in currency trade has led to many rogues rising to confuse investors with wrong analysis and projections. Well, if you have been a victim of these scoundrels-or you were almost becoming one- consider this as a free bible on Forex signals that will keep you informed and safe as you venture into the money-minting industry of buying and selling currencies.
For starters, Forex signals constitute of a short message or an email which is sent through a signal system to the traders. From the Forex signals, we can obtain:
A currency pair.
An entry level- a currency value where a trader is advised to get into a market.
Take profit- a currency value where a trader is advised to leave the market with a profit.
Stop loss- a currency value where a trader is advised to leave the market with a loss. Mostly done to avoid extensive losses by the traders.
The nature of trading currencies based on the above is shifty and one should keenly study trends and not just rely on projections from the technical analysts. There are some exploitative people who may pose with Forex signals which entice people then quickly sink with many people aboard.
It is based on the above synopsis that the three actions below emerge:
Buy action- this is indicated to a trader to buy a currency pair. With this action comes TARGET which indicates to take profit, STOP signifying stop loss and @ which indicates entry. This type of action normally occurs in a market which is in an upward trend.
Sell action- this indicates to a trader to sell a currency pair. And just like in the buy action, with this action also comes the TARGET, STOP and @ numbers. The action normally occurs when the market is in a downward spiral.
Standby action- these tell a trader not to take any action. This generally happens when the market is in an unsuitable position to conduct a successful trade.
The great thing about the above is that based on the value for their customers, most companies have a free credit policy equivalent to the value of the signals that end with Loss which ensures minimal losses by clients. So the next time you receive your FX signals, act intelligently!