How to make use of trading signals to follow up foreign exchange speculation?

With the development of network technology and the rise of social trading platform, documentary trading has become very mature and popular, and has become a unique trading mode in the field of retail foreign exchange. Xiaobian has specially sorted out several types of signal merchandising prevalent in the market, and will make a detailed inventory of their advantages and disadvantages.


Why is documentary trading so popular? It is not difficult to find that this is closely related to the high proportion of foreign exchange novices in the whole industry. The novice traders with less experience and time can realize the "easy profit dream" by using the documentary trading; while the experienced and profitable trading experts can "copy or teach" their own operations to the novices through the documentary system, so as to expand their popularity or collect Commission and subscription fees.

The whole process of documentary trading can be divided into two ends: the sender (trading expert or analyst) and the receiver (Documentary trader). The signal sender sends the trading signal to the merchandiser through different channels or platforms, and the merchandiser makes trading decisions.

Source of documentary signal
According to the different senders of trading advice signals, the sources of documentary signals generally include the following four channels:
1、 Independent social trading sites: like us, etc. This kind of platform has gathered many traders, such as technology controller, trading master, novice, EA seller and so on. Its important function is to establish a complete merchandising ecology through a large number of documentary systems provided by participants. In this merchandising ecosystem, social networking sites provide a convenient online platform and channel for settlement. The transaction masters or EA writers of registered users play the roles of signal sender and seller, while other users play the roles of signal receiver and buyer. Some brokers will also participate in providing trading accounts or services.
2、 Senior traders send out signals to remind (call orders): this group includes analysts, lecturers or other types of traders. They often have multiple identities (broker lecturer, IB, we media account, asset management team), so they will conduct marketing on themselves while making market and operation analysis to investors. The trader who orders independently will choose to cooperate with one or more brokers to obtain brokerage rebate from the trading volume of customers, or reach a profit commission agreement with the followers. There will be countless trading signals generated every day, which are transmitted through various channels, such as shoudan platform, live channel, wechat, QQ, email, etc.
Due to the low threshold of release, the number of daily updated signals is huge and the quality is uneven, so it is difficult for novices to identify them.
3、 The self built documentary platforms of brokers: they are not only brokers (providing trading accounts and services), but also online documentary platforms, forming a closed-loop documentary system. Both the signal sender (trading Master) and the merchandiser are in the same brokerage platform, and their customers can directly carry out documentary transactions on their website. The platform will endorse "trading masters" through historical transaction records, which provides more basis for novices to judge the correctness of a source's decision-making or profitability. This model provides more reference for signal screening, but the limitation is that the closed-loop documentary ecosystem only exists in small-scale traders on the same platform.
4、 Professional institutions provide trading signals, such as daily investment banking strategy and institutional signals. This kind of transaction signals usually need to pay subscription or only circulate as internal resources. In recent years, in order to increase customer stickiness and increase transaction volume, brokers have launched their own trading signal services for their retail customers. Some are provided by subordinate analysts and some by independent transaction advisory teams. In the latter, the better one will give the currency pair, direction, point, stop loss and stop profit price.
Interestingly, the original intention of such transaction signals may be to serve the platform customers of its parent company. After better feedback from the market, it has attracted a larger number of off platform subscribers.
Compared with the other three types of signal sources, this kind of signal is unique in that the sender of the signal is a professional analysis team, not a folk expert; what is given is a signal reminder, not an automatic tracking.

In conclusion: if you are looking for the simplest trading method, automatic documentary is more suitable for you. It is necessary to pay attention to strict risk control, and don't let other people's trading decisions lose their own account; if you want to upgrade from a novice to a master trader and gradually improve your trading ability, then manual documentary is more suitable and needs to undertake this process Some of the account fluctuations that may occur in.

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