When you decide to use a daily forex signal there are several things to consider before you ever push the buy or sell button. Without considering the five items below you will quickly find yourself hanging onto losing positions, stuck in a trade you don’t know how to get out of, or worse, broke.
1. Account size:
If you don’t take into consideration your account size when using daily forex signals, you will quickly find yourself in a tough spot. Consider for a moment that most trend following systems are only right 50 percent of the time. That does not mean that 5 out of ten times the signal is accurate. It may mean the 50 out of a 100 times it is right. You could easily start your trading when they go on a 10 to 15 trade losing streak. That doesn’t mean the signal isn’t a good one. It just means that if you over leveraged your account thinking you would be right five out of ten times, that the mistake was yours.
2. Definition of “Daily”
One of the main reasons for using daily forex signals is to limit the amount of sleep you lose. Traders that use hourly signals usually get caught in an endless cycle (until the go broke) of being up during the night because they missed a trade the night before. When a trade doesn’t come they finally go to be and miss the trade they were looking for. You want to make sure the daily forex signal you are using comes at a good time for you. Usually the best time is when you get home from work. Or Just before bed time. If your signals are coming at midnight, what’s the point; there is no delight in getting out of bed then to trade.
3. Time required:
The time required to enter trades should be insignificant. As discussed above, one of the main reasons for daily forex signals is the amount of time needed to trade. If you have to sort through twenty calculations just to make the trade, then that time savings isn’t very significant. If you are looking for daily forex signals then you looking to make your life a little easier. Make sure the signal is easy to interpret and apply!
4. Monthly Cost
You need to consider the cost of the daily forex signals in the cost of doing business. If you have developed a plan to trade and recognize the fact that you need to trade a micro account in order to manage your risk, then a $250 monthly subscription would be out of the question. That is unless you planned in advance that you wouldn’t be able yo pay the monthly free from earnings for a few months. This leads into the fifth and final point
5. This is a business
Anyone that is trying to pitch daily forex signals as a way to get rich over night, or double or triple your money every month is a scam. If you at all considered the reality of that happening, you would immediately see it just isn’t possible on a consistent month in and month out basis, or everyone would be doing it. Using your common sense would tell you that the money spent would be better used for finding a realistic system that under promises and over delivers.