How the signals are sent to the clients? Forex signal providers are using different media on sending signals. They usually use one or more of the following; Twitter, FB Messenger, Telegram, test messages, emails, etc.
What are the problems with Forex Signals?
As you can see in the definition of Wikipedia, a Forex signal is a suggestion for entering a trade on a currency pair at a specific price and time. The problem with this is no matter how good the entry suggestion, many subscribers will not get it right. This is because the signal is all about the Entry Plan. It doesn't mention what kind of Money Management to be used and most importantly, it doesn't tell the Exit Plan applicable to the entry plan. So what subscribers are getting is an incomplete suggestion. Some signal providers are sometimes giving Stop-Loss level as a part of the signal. Yes, SL is an exit plan. But SL is the lamest of all exit plans. If your SL is not a well thought and baseless SL, it is as bad as without SL with no basis. As I've been saying for years now, SL and no-SL are equally risky if you don't know what you are doing.Another reason why Forex signals don't work is psychology. Traders have different attitudes towards trading. It will create a whole book if we are going to discuss everything :). If a strange Forex entry suggestion is given to a trader. The trader doesn't know what to expect from it. He doesn't know how the entry plan is analyzed. The trader is not prepared for that trading plan. He is not trained how to handle that kind trading plan. So the result of his trade will be erratic. As well as the behavior is most likely erratic. Most of the time, he panics.
So next time that you subscribe to a Forex signal, be sure the provider is giving you the whole package. It should include a money management plan, exit plan, and a clear training on what the signal is all about so you will behave properly on execution.
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