How to use trading signals correctly
Once you learn to "read" these signals, using them will be a walk in the park.
- Your first step is to log into the signal provider's channel. This can be a website, a Telegram channel, a Skype chat, etc.
- Get the data provided by the signal provider and copy it into your account.
- Wait until the trade is completed and collect the proceeds.
What is included in the best trading signals?
More specifically, a trading signal should tell you the following:
- The instrument/currency pair you will be trading (EUR/USD, BTC/USD, gold, silver, etc.).
- The direction of your trade. Next to the current price, a BUY or SELL action will be displayed.
- The status of your signal. In terms of status, signals can be Active, Ready and Closed.
- Active signals can be used immediately as they are. Get Ready signals are not yet active, but they may become so shortly. They can also disappear. Keep an eye on them, but do not react to them unless they become active.
- Closed signals have expired.
- The entry price is self-explanatory. It is the price level at which the provider recommends you to enter the trade.
- The stop loss is the point at which your trade will be automatically closed if the market turns against you. This is a loss control function and as such is very important for long-term profitability. Make sure you don't forget to set it as your signal recommends.
- The take profit is the price level at which your trade will be automatically closed if it goes your way. Taking profit at the right time is as important as the
- Protection by a stop loss.
- Comments, charts and explanations on the recommended trading setup.
You need to be aware that the trade can be closed in three different ways. In addition to the automatic closing triggered by the SL or the TP, the provider can also close it manually. If he deems it appropriate, the provider will recommend closing the trade. In such cases, explanations will be provided in the comments section along with the closing price.
In certain circumstances, the signal provider may even recommend extending the TP to increase the profit margin.
How to use different types of trading signals
Interestingly, sometimes, in order to maximize the potential of your trading signals in Exness personal login area, you should simply disobey. Or rather, you should tweak some of the variables that make them up.
Shifting your take profit is an obvious way to expand the profit potential. Most signal services use a fixed pip amount when setting the take profit level as well as the stop loss. They rarely jump in to tweak these variables as the trade progresses.
Take Profit and Stop Loss
If you think the potential of the trade is better than the profit level allows, feel free to move it. In some cases, it is appropriate to remove the take-profit completely. Just remember not to hold the signal service liable if your bold moves backfire.