Generate your own trading signals through analysis

Trading on the stock markets has become a highly popular type of investment recently and is greatly facilitated by the various online trading platforms available to them through specialised brokers and banks. But successfully making satisfactory profits is a little more complicated in that this requires a certain understanding and knowledge of the markets. In fact you need to be able to complete different analyses on various assets to be able to determine as precisely as possible the future trends and thereby take profitable positions. Luckily, the website offers you the opportunity to obtain free trading signals every day on the major stock market assets.  

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Generate your own trading signals through analysis

Are the Forex signals reliable?

The efficiency of these automatic signals systems remains to be proved and no trading platform guarantees the performance of this information. As with anything anticipated these results, whether hypothetical or simulated, are not based on real trades and can therefore not be certified as correct and exact. For that these signals would have to be based on a real recorded return.

In the general sale conditions of the platforms or private services that offer these signals you will find it stipulated that these signals that are sold provide benefits, not losses.

On the other hand, if we reflect on the point of a trader or platform revealing their perfect risk-free trading secrets, we can rapidly come to the conclusion that if such a method did indeed exist then surely it would be used by the instigator to directly achieve profits themselves on the Forex.


How to best use the Forex signals?

It is always possible to make profits using this type of signals but for this you need to verify certain factors.

You should be able to trust your platform to apply the signals transmitted to you. But this is not all. In fact, you should also exercise discipline by using your experience and knowledge. By using the information you have, the signals and your intuition, you will have a better chance of obtaining a successful result.

For example, don’t forget that the Forex signals are generally based on a simple technical analysis of the rates. To obtain good selling or buying indicators for an asset it is best to also complete a fundamental analysis using an economic calendar.


Find your Forex signals yourself:

Another solution consists of finding Forex signals yourself, notably by learning to study the charts and their indicators. Using the information you can find on the latter, such as the support and resistance levels or the pivot points, you can easily known if the rate of a currency pair that you are following will rise or fall over the short or medium term.

To start with, why not try to prepare your own analysis and compare the results to those signals available through your trading platform? You can then rapidly develop efficient strategies which will improve over time.


Social trading signals:

Another way to obtain free trading signals is to use a social trading module. This type of tool offered by certain trading platforms is based, as indicated by its name, on the exchange of information between traders. To summarise, it makes it possible for you to access information on the positions taken by the best traders on the platform and even to automatically copy their strategies.

These modules offer you the opportunity to obtain free trading signals directly extracted from the most profitable investors’ strategies. They therefore offer certain advantages including that of taking into account economical current events, something that the signals issued by software cannot do as they only use technical analysis.

To use signals provided through social trading you can choose to simply consult the asset purchases and sales of high performing traders or use the function that enables you to automatically copy the positions of the latter.


How to choose the signals you should use for your strategies:

The majority of online market trading platforms provide free trading signals to their subscribed traders. However it is also possible to obtain signals using payable independent software. The trading signals available on the market are therefore quite numerous which rather complicates the choice of investors, particularly novice traders who do not have the experience to tell the difference between good signals and bad signals.

So, how to choose? Of course, the first thing to do before following a purchase or sale signal is to verify its reliability. Although these signals cannot absolutely guarantee you profits some achieve this objective more often than others. To know if your trading signals are reliable you can search for user feedback about the latter.

However there are other criteria to take into account if you wish to trade effectively using trading signals such as the following:

  • The frequency of the signal updates: An asset moves by following successive trading trends every day and a Buy signal can rapidly change to a Sell signal. It is therefore preferable to use signals that are updated frequently throughout the day, preferably automatically, such as those offered by certain platforms. 
  • The risk level: Generally speaking, trading signals are supplied with a reliability indicator expressed as a percentage. The higher the chances of achievement, the higher this indicator. And on the contrary, a lower indicator indicates a major risk of the non-achievement of the forecast.
  • Taking into account the fundamental analysis: Although certain signals resulting from software only use technical analysis for making forecasts, others also take into account fundamental analysis and the events that can influence the share price of an asset. The latter are therefore more comprehensive and preferable to the former.
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75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.