Does the thought of quitting your 9-5 office job and instead of buying and selling currencies from the comfort of your home sound appealing? Well, for many of it does. However, seasoned investors will tell you first-hand that trading forex online is no easy feat. In fact, the vast majority of traders lose money.
If we were to pinpoint a major hindrance for newbie traders – it would have to be an inability to read charts. Put it this way. Fundamental analysis is somewhat we can all do. We simply need to assess how a real-world news event is likely to impact a specific currency, and then place a trade accordingly.
However, those making a living from forex trading on a day-to-day basis will place the vast bulk of their efforts on technical analysis. This is the process of performing in-depth research on historical pricing trends of a forex pair – say GBP/USD.
With the assistance of technical indicators like the Fibonacci retracement, relative strength index, Bollinger bands, and stochastic oscillator – experienced traders will then assess how these historical trends will impact the future direction of the pair.
Sounds difficult? You bet. In reality, it takes many months – if not years to truly gain the required skills to read advanced forex charts, which is why so many newbie traders fail.
However, by allowing automated technologies to perform the research for you – forex signals providers like Learn 2 Trade could just provide that missing link.
Forex Signals and Automated Research
The overarching concept of forex signals is that the provider sends trading suggestions to you in real-time. Learn 2 Trade – a UK-based forex signal provider, explains that these suggestions are not arbitrary.
On the contrary, they derive from an algorithm that seeks to scan the forex markets on a 24/7 basis – constantly looking for trends that resemble a potential profit-making opportunity.
For example, let’s say that the algorithm is analyzing USD/JPY. With between 50-60 technical indicators in play at any given time, the technology assesses that the RSI on USD/JPY is approaching that all-important 30 mark. For those unaware, when the RSI of an asset breaches 30 (it runs from 0-100), this means that the asset is in oversold territory.
The Learn 2 Trade algorithm will then notify its subscribers to inform them of its findings through a real-time signal. With that being said, the signal would be of little use if it did not provide additional details on the proposed trade.
With the assistance of additional technical indicators, the forex signal provides the respective entry and exit prices. In fact, it might look something like the following:
- RSI on USD/JPY is approaching 30 – heavily oversold.
- Place a buy order
- Entry Price 109.45949
- Stop-Loss 109.01056
- Take-Profit 111.64349
As you can see from the above, leading forex trading signal providers to ensure that all of the required order information is provided. For example, the newbie forex trader knows what order to place (buy) and on what pair (USD/JPY), as well as the entry price (109.45949). They also know how to mitigate their losses through a stop-loss order (109.01056), as well as how to lock in their gains (111.64349).
Crucially, the newbie trader was able to benefit from highly advanced research on USD/JPY without having any prior knowledge of technical analysis. Furthermore, and perhaps more importantly, the USD/JPY example is just one of many forex pairs that the Learn 2 Trade algorithm will scan. This means that regardless of your skill-set or experience in forex trading, you’ll always be accustomed to a potential profit-making opportunity.
What Newbie Forex Traders Need to Know
Learn how to trade explains that it took many years to perfect its automated algorithm. Not only this, but the team of in-house developers is required to make ongoing maintenance to the algorithm – fully in-line with the evolving nature of the forex markets. In other words, what might work one day, might not necessarily work tomorrow.
As a result of this, Learn 2 Trade is open about the fact that they are a subscription-based model. The platform argues that while free forex signal providers are plentiful in the online space, these rarely offer anything of value. After all, why would somebody release a proven strategy into the marketplace without charging for it?
In order to give newbie traders the chance to test-drive the Learn 2 Trade live forex signals service out, the provider offers a 30-day money-back guarantee. This allows those sitting on the fence to assess whether or not the signals are worth paying for.
With that being said, Learn 2 Trade – and many others operating in this segment of the forex space, have experienced a rapid surge in account sign-ups in recent weeks. Presumably, this is linked to the highly volatile impact that COV-19 is having on global currency valuations.