If you do not have a lot of time to trade on the forex market you may wonder what your options are. Two of the most commonly suggested suggestions would be to use forex signals or to use automated trading systems. It is important that you consider which option you should be using. Forex signals should be used by different people than the automated trading system.
What are Forex Signals?
Before you can determine what option you should be using you need to know more about them. Forex signals for traders with limited time for the market will refer to the signal services. A signal service will send you a forex signal that tells you what you should be trading at any time. The signal should come with an entry and exit price for the trade. All trading signals are time-sensitive which means that you have to use them as soon after you get them as possible.
What is Automated Forex Trading?
The second option you can look at is the automated forex trading systems. An automated system is also known as a forex robot. These systems will use a strategy that you set up to trade on the market for you. You will not have to do anything other than set the system up and connect it to a trading account.
Using Signals or Automation
The first step in determining which option you should use is to consider the amount of time you actually have for trading. The rule of thumb is that forex signals are better for people who actually have time to trade on the market. This time could be a few hours after work or 5 minute breaks throughout the day. Fully automated systems are generally better for people who do not have any time to trade on the market.
If you choose to use signals you have to consider the service that you are going to use. There are a number of scams on the market related to forex signals. These scams will have a service offer you signals for a fee and then never actually give you any signals. When you use signals you have to remember the time-sensitive nature of the signals. If you cannot trade on them as soon as you get them then you should not trade on them at all.
Using Automated Systems
Like signals there are a number of scams related to automated systems. You should always complete research about the service before you use it. When you use an automated system you have to ensure that the strategy you are giving it to trade actually works. Most forex robots offer back testing that will help you with this.
Testing the System
If you are going to use signals or the automated system you have to test it first. If you do not test the system then you will have no way of knowing that it works before you lose more money. It is best to test the system on a demo account. However, this can be a problem with some automated systems because the demo account cannot be connected to this. If you find this to be a problem you could try using a micro account.