In the world of forex, or foreign exchange, a forex signal is a form of suggestion that an order should be made on a certain pair of currency. The signal is usually give to the subscriber of a foreign signal service and can be generated by either a robot, or a human analyst. A forex signal is usually generated or suggested after studying and analyzing currency movements. Most forex signal services prefer to use automated robots for the generation of their forex signals, because these are usually able to get the job done in half the time. In other words, it is usually faster for an automated robot to analyze currency movements than a human analyst.
As soon as the signals are analyzed, they are supposed to be sent out in a timely manner, which is why mediums like email, SMS, tweet, RSS and websites are used. These mediums usually deliver messages quickly and immediately, making the forex suggestions relevant at the time they are delivered. Speed is an essential factor in forex signal transactions, since the faster the signals are delivered, the more valuable they are.
When thinking about getting into bed with a forex signal service or trading in any other form of foreign currency, the one thing you need to be prepared for is the aspect of losing. When you are mentally prepared for loss, it will not hit you as hard when it actually does happen. However, just like you need to be prepared for losses in forex, you also need to be prepared to win. It is really a fifty-fifty thing. However, given the fact that many people get into forex with the hope or making tons of money, they are usually an easy target for fraud.
In most cases, promoters will promise that you will make gains beyond your investment and if you are not careful, you end up losing much more than you would have wanted to. Make sure that you are wary of people that promise you big money with little risk, the chances of you winning big with little risk is really slim, so you should not bet your chances on this. The truth is that it is possible for you to make high profits in forex, but for this to happen, you also need to be prepared to take high risks.
Even when you have chosen a forex signal service to help you with your forex signals, it is vital that you understand what forex signals are. This way, you will be able to recognize a signal when you see it and will invest in forex that you trust. Different forex signals are used by different providers, so the signals you get will really depend on the service provider you choose. The commonest and most constant forex signals are those of buy and sell.
Other common signals include OB/OS, volatility, partial buy/sell and SL/TP among others. A good forex signal provider will be able to clearly explain what these terms are.
In simple terms, a forex signal is simply a suggestion that you should place an order on forex. It is like a green light on a certain pair of currency that could make you some profit. Notable is that the signal is simply a suggestion, so you do not have to place an order when you get it.