One of the many advantages of trading Forex as opposed to other markets is the lack of necessary prerequisites. You do not need any sort of license, expertise, or even a large bank account to get started. In theory, you can decide to jump in the Forex waters one day, and be swimming the next.
I say in theory because if you do start trading without taking any steps to prepare yourself, two things will happen. The first thing you will experience is a very strong feeling of being overwhelmed. You will be intimidated by the various technical tools available to you, you might even feel a total lack of understanding when it comes to the actual trading tools and platforms.
Once you overcome that initial shock, you are most likely going to experience major losses in the market. You will quickly become part of the 90% of traders that lose their money in the Forex trading arena. So, how do you avoid these two painful experiences?
Once again, you have two options. The first one is to sit down, study, research, learn, and understand the ins and outs of the Forex market. Get to know the market from all angles, historically, financially, and then practically. That should take you a significant amount of time, although, much less than it would have before the worldwide Web became an available resource.
You can find any and all learning tools online and turn yourself into a Forex expert without ever having to open a book or spend one dime trading the market. Sounds pretty easy, but it isn’t.
The Forex market is a tremendous market and double and triple the size of other financial markets. It also involves multiple players starting from retail traders, global banks, and of course countries. The tools used to analyze this market are complex and highly technical, and cannot be conquered in a few weeks.
The learning curve in Forex is a steep one and one that will take you months if not years to master. If you are looking to trade Forex for some quick profits, I am not sure you have that time to spend learning the market.
The second option you have, and one that will make your life a whole lot easier is to utilize one of the market’s many signal providers. Let the experts do the “dirty work” of understanding what the charts are indicating, what the fundamentals are predicting, and what the financial experts are foreseeing.
The following are the three main benefits to using a signal provider in your Forex trading:
- Mobility : One of the problems with Forex trading is that due to the high volatility of the market, you need to pay close attention at all times to your open positions. This is true about all traders, and especially true for scalpers that open and close trades within minutes.
Having to keep your eyes glued to your monitor full time, does not leave the trader very much independence or freedom. If you sign up with a signal provider, you can have instructions on which trade to open and when, emailed or SMSed to you while you are on the go. Once you receive the signal, you can then execute it easily without the worry of having to watch the market closely.
- Minimal Learning Curve : As I stated above, using a signal provider will enable you to skip the entire stage of familiarizing yourself with Forex, although, I would still recommend you acquire the basic tools. Not only does using a signal provider allow you to start trading faster, it also gives you the confidence that your account is being traded on the highest professional level, assuming you chose your signal provider wisely.
- Stay Updated : Not only could you be completely mobile and still trade Forex effectively, but you can always rest assured that if there is a good trade to be made, you will know about it. You will miss fewer opportunities by having someone constantly managing your account and trades. You do not have to wake up in the middle of the night to open a trade, you can just execute the signal that the provider sends to you.