Particularly in fast-paced arenas such as the foreign exchange market and FX software, trading signals can be an immensely useful tool for investors across a broad range of experi-ences and skill levels. Thanks to new technological advances, trading signals can be deliv-ered to investor in a diverse array of mediums, ranging from e-mail to SMS, tweets, etc., What is even more interesting is the fact that a large number of trading signals are now being created and distributed by quasi-autonomous ‘AI’ systems which monitor the markets for specific scenarios and report to clients at appropriate intervals.
As investors improve in skill level and increase the depth of their experience, it is quite likely that their preferred trading signals will be more accurate and specifically tailored to their own goals. This could easily be considered a ‘pro’ of today’s modern trading signal system. Those who know how to wield these signals can quickly begin to profit by them. What, then, could be considered a ‘con’ of trading signals?
Interestingly, the negative aspects of trading signals are not focused on the content of the signal at all. In fact, the most unfavourable elements of trading signals are relegated to the industry of creating and distributing trading signals through FX software and other mediums. For example, many businesses charge substantial per-signal or weekly subscriptions for in-vestors who wish to receive these markers. Depending upon the specificity of the signal it-self, it’s quite likely that investors may receive information that doesn’t exactly match their needs while still being required to pay for it.
The point must also be made that a number of scams are currently in existence which drain the accounts of users both through hefty per-signal pricing and blatantly false information. In situations such as these, investors stand to lose significant portions of their investments if they take large bets while following the cues of their trading signals. Perhaps the best way to surmise this particular risk is with the following statement: ‘buyer beware’. Those who are ready to begin using trading signals should first properly research their preferred service pro-vider to ensure that A.) the signals are reflective of your investment strategy and B.) that the service is not a scam. Vigilance can pay huge dividends in an arena such a this, and it is up to the customer to ensure that they do not place themselves in a situation where their re-sources are drained.