Learn the Various Signals of Trading

Do you consider yourself to be an investor? What are you currently invested in? Real estate? Bonds? The general stock market? Or maybe you like to trade currencies? Whatever the case may be, I wonder if you also know about various trading signals.

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by wonderdebby

What is a Trading Signal?

Some of you may actually be wondering what a trading signal is. At first glance, many would assume that there must be a signal in the market that would prompt a trade of some sort. While this definition is vague, it’s pretty much spot on. The only question is, what is the signal? That is the answer that everyone would like to know.

Signals Can Make You Rich

I dabble in various investments and I understand a few signals in the market. For instance, have you ever heard of a double dip in the market? Basically, when a particular stock (or the overall market, represented by the DJIA) starts low, jumps to a peak price, and then dives back down to its previous low (or below), this is your signal to buy. Barring any serious news in the market on this particular stock, the share price most likely will not rest at that low price. No, it has a greater chance to regain its strength and increase its share price once again. This simple double dip concept is an example of a signal. Yes, it’s quite simple, but sometimes the best signals are. And, if you capitalize and invest at the correct time (in accordance with the signals), you could become very wealthy.

Other Signals

Just like the double-dip signal, there are thousands of others that are just like it. Often, they are more complex, but they are signals none-the-less. There are Forex Signals, and there are also MQL5 signals as well. Some signals are formulated by people just like you and me, but be careful which ones you choose to follow. Some of them may be great signals, but others might just be a quick find and has not been tried and proven in multiple scenarios.

What to Do With These Signals

I know that I’ve said you can make big money if you pay attention to signals, but quite honestly, how do you do it? Well, you can set up a signal in one of two ways. First, when you install your signal (to watch for that particular event to happen in the market), you can choose to merely have it send you an alert that the market has shown your specific signal. From that point then, you can decide if you want to make a trade or not. If you believe that your signal is correct, then you’ll make the trade and hope to make some money. If you don’t, then you simply won’t invest the money at that time. Second, you can install your signal to make automatic trades when your signal is detected in the market. This is a bit riskier, but with an instant trade you increase your chances of making a good profit (if your signal is a good one that is) since you are one of the first to make the trade.

If you institute the correct signals, they can really allow you to have an upper hand on the rest of the market. If you understand that the market is on the rise just before it happens, you’ll obviously be in the best position to earn a healthy living with these signals.

2 Responses to Learn the Various Signals of Trading

  1. PipsToday says:

    Hi Daniel! Yes, I am investor. Currently I have invested money in stock, forex & mutual funds. Real estate is another good investment. I am using free forex signal. Yes, I’m agree with your point if we proper implement signal they can make rich. Thank for share this signals information with us that’s helpful for beginners as well.

  2. Brendon says:

    I would love to get into trading, I have done some research on the subject but no one seems to be able to keep it simple enough for beginners like me to understand! This article was refreshing in its uncomplicated delivery. When you talk about installing signals, were you talking about a specific trading platform? Do you have any recommendations for trading platforms that are good to learn on and have a practice account feature?

    Many thanks!!

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