How to Use a Forex Trading Signal

Forex trading signals are triggered when technical
conditions signal a good trading opportunity. Email and SMS (text message) are
popular delivery methods for forex trading signal alerts, but Web-based option
can often be best if you're at your PC when the signal emerges.

For example, some forex trading signal services have automatic pop-up software
to indicate the perfect entry (or exit) point of a trade. These will often
include candlestick currency charts that may flash or blink so long as the entry
(or exit) point remains valid. If you trust the service provider and you don't
have any conflicting information telling you the trade is bad, right then is the
perfect time to execute the trade.

But other forex trading services specialize in catering to traders who have
medium- or long-term strategies, rather than short-term. A medium- or long-term
trade may have a forex trading signal that remains valid for an entire day (or
longer), so for traders specializing in longer-duration trades, these forex
trading signals services can be delivered via email or SMS at no detriment.

Another way to use signals is to pair them with a service that automatically
executes your trades. This can be a risky prospect for traders who prefer to use
forex trading signals as mere recommendations and like to do their own homework
before making their trades, and such services are better for short-term traders
who don't have time to do their own analysis before pulling the trigger on a
trade, anyway. The good news is that, thanks to modern technology, forex traders
have the option to choose which style of trading -- and which style of
corresponding forex trading signals -- works best for them.

Some forex trading signal services allow you to sign up for a free trial;
usually consisting of ten or fourteen days. Take advantage of these free trials
to make sure your style of trading is compatible with their forex trading
signals. If you are new to the forex market, then you can sign up for a free
trial and use the signals with a free "practice" account in which you trade
"demo money". This way you can learn how to use signals without undue risk.

But ultimately, if you want to make money in the forex market, you're going to
have to risk money in a real account, and unless you are incredibly good (or
lucky), you're probably also going to have to spend money on a good forex
trading signal service. The forex market is not for passive investors -- it is
for active traders who wish to rely solely on their wits... And a little help
from forex trading signals, of course!


Article Source: http://lforex.blogspot.com/2007/09/how-to-use-forex-trading-signal.html