What are trading signals
& how do they work?
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DEFINITION
Trading Signals
Trading often feels like a minefield of possibilities and there’s no crystal ball to confirm whether you’re making the right decisions. Of course, this uncertainty is also part of what makes trading so appealing. And while there’s no way of knowing exactly what the markets will do, there are tools that can help guide your trading activities. One of these is a Trade Signal.
In short, Trade Signals are suggestions alerting you to trading opportunities that arise on forex, indices and commodities markets. These recommendations are based on human analysis (manual signals) or generated by mathematical algorithms (automated signals). Trading signals can be useful for beginner traders in helping them discover new strategies, but of course, there’s no guarantee these ideas will actually pay off in the end.
Sounds good - what’s the catch?
If you think automatically receiving pointers on seemingly fruitful trading opportunities sounds too good to be true, you could be right depending on how you approach them. As we’ve already said, blindly following trading signals can be a recipe for disaster as these may easily be wrong, and if you’re passively copying instead of actively thinking, you’re not learning how to be a better trader.
Here at Trade Nation we want our traders to benefit from trustworthy insights courtesy of the very best minds in the trading world. This is why we have partnered with Signal Centre, the only signalling platform that’s authorised and regulated by the Financial Conduct Authority (FCA).
Trading signals you might hear about
Fundamental signals
These signals relate to economic and market developments and will stem from things like news stories, events and company declarations. For example, an interest rate decrease may cause a particular currency to fall in value. Two of the most influential fundamental signals are earning announcements (whether a company has met expectations), and upgrades or downgrades of stock by notable analysts.
Can you trust Trading Signals?
Trading Signals are only worth considering if they’re reliable, and how do you know you can really trust them?
Every trading company offers signal software - but that doesn’t mean it has to be high quality or approved by any leading financial bodies. There’s a chance your Trading Signals could be coming from sources that don’t have the credentials you’d be expecting, increasing the risk of you being pointed in the wrong direction.
A GROUNDBREAKING FCA REGULATED PROVIDER
Why we use Signal Centre
Signal Centre is a leading, award-winning trading signals provider which applies technical analyses to a range of indices, currencies and commodities. What really sets it apart from its competitors is the fact it has FCA authorisation and regulation, confirming that Signal Centre meets all of the organisation’s detailed requirements. To date, this is the only major trading signal provider with FCA support, which is why we have specifically partnered with Signal Centre.
You can be confident that the experts generating your trade signals are professional, unbiased, and conform to the FCA’s strict criteria. The platform never shares vague, confusing or misleading suggestions as every trading signal is supported by a detailed explanation unpicking the rationale behind the idea. As well as offering complete transparency, this will also help you develop a better understanding of such analysis which can in turn help you improve as a trader. Please note, signals can provide guidance but are not trading advice. You must remain aware of the risks of placing your trade, which may include losses.
How to use trading signals on Trade Nation
1. Create a trading account with Trade Nation
You can open a full account to start trading immediately or explore the ins and outs of our platform with a free practice account.
2. Log in to your account
Open the trading platform and select ‘signals’ at the top of the page. Signal center will open in a new window.
3. Look at the suggested signals
You can also filter them by market, class, duration or status. You can view a trading signal and examine the accompanying report.
4. Make the trade
Go back to the Trade Nation platform window and place your trade.