This is Part Three from the tutorial How To Trade Forex By Signals. In Part One we discussed how to choose the best forex brokers and trading signals provider. Part Two tried to push you into action and to help you develop your own strategy.
Now in this last part I want to give you some tips on better performance.
Photo by david.nikonvscanon at Flickr
Tips To Improve Your Performance
The quality of the signals you are subscribed for is very important factor for your performance, but it’s not the only factor. You and your actions have at least as much influence as the signals themselves. Here are some ideas how to get more from the signals you are subscribed to:
- Invest large amount. Unlike the managed account, the forex signal services cost fixed price for a given period. So obviously the more money you have to trade, the less percentage of your profits will go to pay for the signals. Trading by signals makes no sense if you want to trade only $250 – even if your fee is just $50 per month, it’s unlikely that you will make enough to cover it and make profits. On the other hand, if you have $50,000 in account and achieve 5% monthly ROI, the fee of $250 is just 10% of your profit – much better than you would pay in a managed account.
- Get longer subscription. Most trading signal providers will give you nice discounts for longer subscription. For example TradeWindowFX gives $50 discount if you pay quarterly and Millennium Traders discounts 50% if you pay annually. So once you get comfortable and confident with your signals provider, see if you can get a discount and subscribe annually.
- Use sounds. Many investors don’t want to trade by signals because it sounds like too much staying on the PC. If your signals provider has sound alerts, you won’t need to care about that. You can watch TV, cook, eat or do anything you want to as long as you are around the PC to react fast. If your job or business is related to staying on the PC anyway, trading by signals is perfect way to earn extra income without interrupting your normal lifestyle.
Trading forex by signals is more involved than opening a managed forex account, but you have full control over your funds and over each trade. Instead of giving thousands to a careless trader and hoping they will be responsible enough, you’d better subscribe for a good signals service and trade without being an expert.