Making Most of the Forex Signals
With the FX market, one thing is for sure; every traders’ primary priority is making an unlimited profit. Forex signals are the tools that help any trader whether an amateur or experienced, to make the profits at the right time.
But do you know that you can maximize the profits while following our Learn2Trade signals? Once your account is registered, you’re able to get the signals directly into your trading account once the trader being followed releases them into their account.
Interestingly, since you’re the boss of your account (you trade the account, not the provider), maximizing the benefits is even more comfortable. But how do you do it? The following are some of the tips;
Extend the take Profit Target
The amount of pips for almost all signal providers is usually fixed as a take profit target. However, once a signal is opened, they rarely change, which makes it easier for you to follow. For some trades, the winning potential might be higher than the signal’s profit target.
Therefore, it’s in such scenarios when you tend to think that a trade might extend further that you add some more pips to the signal’s take profit target. By so doing, you’ll have taken your profit to the maximum edges.
Remove the Take Profit
The take profit is meant to help you take the money at the very maximum of the deal. Just like setting the optimal stop-loss signals, take advantage is essential at the right time.
Whenever there’re new releases, the market follows some trends prompting the forex pairs to take a direction for several pips that take hours or even weeks. At such times, profits are stretched to the maximum.
Therefore, you don’t need to close a signal so early when you feel a trend is on the cards. Perhaps, say like at 25 pips when there’s a potential of hitting 50-70 pips profit. You only use the signal as an entry point and get your take profit target off your trade.
Let the trade run and getting closer to the potential profit as per the previous trend, you then place your stop loss, and you would have made some extra profit.
Extend the Stop-Loss
Like removing the take profit, extending the stop loss can also save your trade. Providers have fixed stop loss targets, which usually are slightly below the resistance level. Therefore, when you see the price heading to the stop loss, you can extend the stop loss above the resistance level.
Never Entertain Losing Trades
They say it’s better to lose small than big. With these trading, there’s always that unknown animal that you can’t tell what exactly may happen next. For instance, disappointing economic data or even a political occurrence can result in a sudden turn-around of things.
Once that happens, the stop loss will inevitably get hit; therefore, you don’t have to wait to lose significantly, and instead, you close your trade instantly.
Pick the Best Entry
When selecting a signal, picking the best entry point is a priority. It can be frustrating to pull the trigger too early only to witness the price get higher 15-20 pips.
At any given moment that you feel that the price might get higher after a sell signal, it’s better not to pull the trigger, but wait a little longer for your best entry point.
A few pips higher can make a big difference, given the fact that sometimes the signals can moss the take profit target. As much patience is a virtue, you won’t mind maximizing your profit.
Scale In and Out
Forex signals are merely ideas and recommendations for trading. Besides, it’s not a guarantee that you’ll come out victorious with all the signals. In fact, some hit the take profit while some may not.
Therefore, the task is yours to ensure that the lot size with the maximum probability of success is increased and those with lower chance scaled out.
Don’t Forget the Spread
Most folks forget to include the spread in their trade. When the spread is not included, you’ll have scenarios whereby the signal is open while your trade gets closed or the two showing different closing time.
Since different pairs come with different spreads, you’re required to adjust stop loss every pair when opening the trades.
Another good option to maximize your profit is to choose a pair which is more correlated other than the one presented in the signal.
As much as signal providers want you to make profits, you’re in control of your account, and it’s upon you to maximize the forex service. The ways highlighted in the article will ensure you get maximum profits.
Nevertheless, it’s not a matter of who wins between manual and automated signals. You should weigh options all the time to make the right choice of the signals or even use both in maximizing the benefits. However, with volatile markets, automated signals can carry the day and with logical markets, following manual signals works trick.