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Forex Signals

Accurate Forex Signals

Accurate Forex Signals: Assume Nothing, Test Everything

Accurate forex signals that tell you when to buy and when to sell certain currency pairs are out there and some of them are quite accurate. Nevertheless, the majority of forex signals are not accurate any more often than the average Joe’s calls are.
If you are on a quest to secure the most accurate forex trading signals, you will need to assume nothing and test everything. You will also, to put it bluntly, need to pay up.

Because think about it: if you were in possession of accurate forex signals, would you give them away for free to any schmuck off the street? Not likely. The development of forex trading systems that generate on the money FX calls can take years of hard work.

The fact that accurate forex signals must be paid for makes thorough investigation of forex signals completely mandatory. You won’t want to pay for much of the junk that passes for accurate currency trading picks.

Eliminate Inaccurate Assumptions

Newish forex traders who purchase forex signals may assume:

-- Forex signals will come through at a rate of at least 2-4 per day.
-- If a particular signal is accurate for one currency pair, it will apply to all currency pairs.
-- If you have accurate forex signals, you will make money no matter what.
-- “Once I have the signals, I can stop doing my homework and run on auto-pilot.”
-- Accurate forex signals never get old.

All of these assumptions are, regardless of the signal system you choose, dead wrong. Let us take each one in turn to show why it is wrong and dangerous to your wallet.

Accurate But Infrequent

Many accurate forex signal systems generate very few signals. The less predictions you offer, the less chance that you’ll be wrong. There is nothing wrong with not being wrong, of course. But if you want to actively trade currencies, this approach may bore you.

Different Signals for Different Pairs

Individual currency pairs, like individual people, have different characteristics and histories. USD/JPY, for instance, is heavily affected by the policies and pronouncements of the Bank of Japan. USD/CAD, meanwhile, depends on oil prices. Because of this individuality, it is very difficult if not impossible to gather accurate forex signals about all currency pairs from a single source or according to a single methodology.

Beware programs that claim that level of universality.

Tragedy: Accurate But You Still Lose Money

If you have accurate forex signals, but you don’t manage your money correctly, you may end up in the dreaded situation of being right but still losing money.

For example, some forex signal systems are accurate in the long-term, but inaccurate in the short-term because of FX market volatility. In that case, if you put all your money into one position, and it declines measurably, you may be hit with a margin call—your forex broker will close out all your positions at the low point of the trade, preventing you from capitalizing on the longer-term accuracy of the forex signal you were following.

Warning: Auto-Pilot May Fly Into the Side of a Mountain

As to the “auto-pilot” assumption: profiting from accurate forex signals is not that easy, and never will be. In fact, automated forex trading can be a road to disaster if you are not careful. This is why most forex robot programs ask you to configure the settings prior to use.

Ignore your role as the leader of this crew at your own monetary peril.

Accurate Forex Signals Get Old Fast

Whether the signals are coming from a person, a computer, or a combination of both, it is important to realize that most accurate forex signal systems are only accurate for a certain time, and perhaps only for a certain currency pair. The market—and the savvy players who make up the market—eventually figure out what’s going on.

 If you’ve got your greasy paws on an accurate forex signals system, get it while the getting’s good, because sooner or later, the market will outsmart your signals.

Test Drives Available to Qualified Buyers

While it’s understandable that an accurate forex signal program provider wouldn’t want everyone and their mother to test out the system for free, seekers of signals should insist on verification of the accuracy of the signals being considered for purchase.

You should be granted the ability, for instance, to connect the FX signals system to a practice account, and see how the system works. You should be able to view—in detail—the past performance of the signals. You should be told how the signals are generated.

Many signal providers will not let you test the goods too extensively before purchase, but will let you get a refund if you are not satisfied with your purchase. Test, test, and re-test during those first weeks, and if the forex signals aren’t accurate, get a refund.


Important Forex Information

The most important step in currency trading is finding the right broker; our forex experts can help. See our
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