How to Use Free Daily Forex Signals
One of the most powerful ways to trade the market profitably is by using forex trading signals. Forex signals may be a new concept for you but, if used correctly, using forex signals has the potential to grow your trading account at a steady pace. Of course, these forex trading signals need to be issued by a reliable and skillful trading signals provider, like FX Leaders.
Thanks to the expertise of seasoned traders and analysts, FX Leaders’ free daily forex signals have achieved consistent and impressive results throughout a wide range of assets and market conditions. These forex signals are easy to use and can easily be copied into your personal trading account.
How to Find Signals in the Signals Terminal?
Traders need to acquaint themselves with how to use our forex signals terminal, which is really easy. The first step in taking advantage of FX Leaders’ free daily forex signals, is to open a trading account with a reliable forex broker. Check out FX Leaders’ recommended forex brokers to find the best broker for your specific needs.
The next step is to take a look at our forex signals terminal where all the details of our daily forex signals may be found. The signals terminal can be found on our forex signals page. This is what the forex signals terminal looks like:
The forex signals terminal contains all the trading signals that are active or might become active soon. In the terminal, you may find forex, commodity, cryptocurrency, and stock index signals.
In the terminal you’ll see all the necessary information like the particular instrument (e.g. EUR/USD, BTC, Gold), the status (‘Get Ready’ or ‘Active’), the stop loss, and the take profit levels. Premium members also see the entry price.
When the status flashes “Active” (just below the instrument’s symbol) the trading signal is ready to be copied to your personal trading account.
How to Manage the Risks of Forex Trading?
Although using FX Leaders’ daily forex signals is really simple, there are certain trading fundamentals that need to be adhered to in order to gain the most from these signals, like proper risk management.
- Position sizing: When using FX Leaders’ daily trading signals, an important step you need to take is to use the correct position sizing. When risking too much of your trading account (e.g. 25%) on one single trade, the odds may turn against you, even when using our profitable trading signals. Conversely, by risking a small portion of your trading account (e.g. less than 1%) on each individual trade signal puts you in the perfect position to grow your account and at the same time protect it.
- Exposure: We are talking about the level of risk that comes with holding your trading capital in a particular currency. Any fluctuations in the value of the currency that you hold, or the exposure you have, can result in gains or losses on your capital depending on which way the specific currency moves. Monitoring your levels of exposure on different currencies that you hold within your portfolio on a regular basis is a crucial aspect of managing your risk. Without regular reviews, you may not be able to perform adequate risk management on your trades and could lose considerable money in the process.
- Lot sizes: In the world of forex trading, a lot refers to the smallest available trade size for transactions within the forex market. When starting out, we recommend that you stick to smaller lots sizes to manage your risk better and avoid losing a large amount of money on a single trade. Once you feel confident and are able to overcome the fear of losing on a trade, you can gradually increase the lot size of your trades to potentially earn higher profits.
- Limiting the use of leverage: Leverage is the amount of money that your forex broker will let you trade with and is multiple times higher than the capital you have in your trading account. With leverage, you can place trades 10 times or even 100 times bigger than the amount of money you have in your account, essentially “borrowing” the extra sum from your broker. The higher the leverage you choose to use, the higher your potential for profits; however, the higher your potential losses can also be in case the trade doesn’t go your way. It’s safer to start with a lower leverage to limit your losses and maintain your trading capital. Although your profits may also reduce, remember, it works out to be safer for you in the long run.
- Diversity: This basically means, don’t put all your eggs in a single basket! As a forex trader, instead of using up your capital to place trades on one or a select few currency pairs, you can manage your risk better by diversifying your portfolio and trying your hand at trading multiple currency pairs. Diversification by placing trades in various forex pairs limits your losses in case some trades don’t go your way. Even if a few fail, chances are, some of your trades may still profit and give you back some money and keep your losses also on the lower side, as a result.
Proper risk management is vital! The good news is, it’s really easy. All it takes is simple math and of course, discipline.
How Trading Signals are Closed?
FX Leaders’ free live daily signals are closed in three ways:
- By reaching the take profit order.
- By reaching the stop loss order.
- Closure by the team of analysts in case certain factors necessitate an early exit. In this case, it will be noted in the comments box that the signal was closed manually, as well as at which price it was closed.
Before you start trading forex with our live daily signals, you should familiarize yourself with these important terms.
- Entry Price – This is the level at which you enter the trade, whether to buy or to sell a particular currency pair. A good entry price is a crucial building block that helps execute a successful trade.
- Stop Loss – This is a level that you can place within your trade in order to limit losses on a potential trade idea in case the markets turn volatile and the currency pair moves against your original plan.
- Take Profit – This is the level recommended by the forex signal at which, when reached, automatically closes the trade and earns you a certain amount of profit.
In addition to these terms, you can learn more about other key forex related terms in our glossary. Read more about FX Leaders’ Forex glossary.
And Now It’s Time to Trade!
You can open the trade at the market price with a pre-set stop loss and take profit according to the parameters of the signal. It’s always safer to at least set your stop loss before opening the trade, just in case a sharp market move suddenly moves against your trade before you can place your stop loss order.
Once the trade is open it will be closed automatically when the price reaches either the stop loss or the take profit.
In certain circumstances, our analysts may close the position manually, in which case the following comment will appear just below the box in which the stop loss price is printed: “The signal was closed manually at xxx price”. Take profit and stop loss parameters may also be adjusted by the FX Leaders analysts, in which case the adjustments will be published in the same space. Premium members receive immediate mobile and email notifications if this happens. Other comments may also appear in this space, for example, “Signal closed at take profit”. See the screenshot below:
When the status flashes “Get Ready” our analysts are looking at a particular trade setup and are about to open a live trading signal. This message gives you time to open up the specific instrument’s chart and order entry box while the analysts are going through their final checks.
If you would like to be notified (via email and mobile) as soon as a trading signal appears in the signal terminal, you can subscribe to our premium signals service. This will ensure that you never miss a trade again.