2Bull Forex Blog

There is no lack of so-called Forex trading ‘systems’ that promise to turn you into a rich trader almost overnight. Many unsuspecting people unfortunately fall these marketing gimmicks without paying attention to what really matters - a good education on Forex trading.

A solid trading education will cover these basic aspects of trading:

1. Technical Analysis
2. Fundamental Analysis
3. Candlestick Analysis
4. Margin, Margin Calls and Leverage
5. Lot Sizing
6. Pip values and how to calculate profits and losses
7. Brokers
8. Spreads
9. Electronic trading platforms

And these are just the bare minimum. A good Forex education will walk you through various examples and even teach you how to trade with virtual money in the form of demo trading.

When first learning the ropes of Forex trading, you’ll probably make careless mistakes such as entering a buy trade when your intention is to sell. This happens to almost all new traders! Such mistakes can be learnt without losing you any money through demo trading. Demo trading allows you to familiarize yourself with your trading platform, such as how to enter stop and limit orders.

Once you’ve familiarized yourself with your trading platform, it’s a good idea to start developing your own trading ‘system’. This is where most retail Forex traders stumble and fall. Developing your own profitable trading system is a tough thing to do.

To help you with this task, you should talk to more traders and also read more trading books. If you keep this up, you’ll soon learn various trading strategies that can help you become consistently profitable. Mix and match the techniques you’ve learned until you settle on a comfortable trading system that suits your personality.

There are many hopeful traders who wish to find a reliable online Forex trading signal to follow. These are usually people who don’t have the time to learn to trade for themselves.

On the other hand, there are other traders who completely avoid all forms of Forex trading signals. These people are very skeptical and are very careful about being scammed by online conman.

If you belong to the former group, this article will hopefully give you something to think about.

What Are Online Trading Signals?

Trading signals are services that tell you when to enter a buy or sell trade. They are typically delivered to you by text messages and/or Email.

Subscription to such services can cost as little as a couple hundred dollars, to as much as a few thousand dollars a month.

Be very careful when choosing a trading signal service to subscribe to. Here are two things to think about if you’re looking for one.

Tip 1 - It Won’t Be Cheap

If a trading signal service is consistently profitable, chances are that it will cost much more than just a few hundred dollars a month. You’ve probably heard of the phrase “there’s no such thing as a free lunch”, and this is no different in the world of Forex trading. A successful signal service that can make you tens of thousands of dollars every month so will most certainly cost you more than just a couple hundred bucks!

Tip 2 - Stay Away From Automatically - Generated Signals

Never subscribe to a service that that’s generated by computers alone. Such ‘automatic’ signals have no way of understanding the current market outlook or investor expectations.

You COULD certainly subscribe to such signals if the market behaves in predictable ways, but unfortunately more often than not, the market doesn’t.