As part of our service to you, 1st2Notify offers trading signals for our members. This can vary from Forex to Crypto but we always try to keep our members informed about what we’re doing and so they can determine if they want to follow suit. This article aims to give you more of an insight into what exactly trading signals are and how to use them.
Summary:
- A trading signal provides a recommendation of a trade you could complete.
- Signals are generated by traders completing chart analysis or through automated AI algorithms.
- Trading signals are beneficial as they reduce the amount of time spent on analysis.
- To use signals effectively, you should: assess the risk and avoid high-impact events.
- 1st2Notify has many signal providers available to use that are easy to follow.
What is a Trade Signal?
Trading signals offer traders the opportunity to identify and act upon potential profitable trading opportunities. Signals provide traders with recommendations or ideas on specific financial assets, indicating when to execute trades at predetermined price levels and times.
Whether you’re a beginner or an experienced trader, using signals can expand your profits and require less time in planning a trade before executing.
How are Trading Signals Generated?
Trading signals are generated by advanced algorithms and analysis techniques that can incorporate both AI and human input.
Using modern technology and data-driven strategies, trading signal providers analyse various market factors, including technical indicators, fundamental news, and market sentiment to identify potential trading opportunities.
These signals are then communicated to traders through convenient channels such as SMS and push notifications, which ensures timely access to relevant information.
Types of Trading Signals
There are several types of trading signals:
Manual vs. Automated Signals:
o Manual Signals are generated by professional traders or market analysts who use their knowledge and research to identify trading opportunities.
o Automated Signals are generated by computer software that can be programmed by traders. These employ complex algorithms to analyse market data and generate signals based on the trader’s preference predefined parameters.
Instrument-Specific Signals:
Specialised trading signals focus on specific market areas which align closely with traders’ strategies, interests, and expertise. These signals are targeted opportunities for traders, here is a breakdown of some key instrument-specific signals:
- Stock Trading Signals: These primarily focus on equities traded and can include recommendations related to specific companies, such as buy or sell alerts based on analysis, earning reports and technical indicators.
- Cryptocurrency Trading Signals: these track digital currencies, including the major cryptocurrencies such as Bitcoin and Ethereum, as well as emerging coins and tokens. These signals often highlight potential opportunities such as price breakouts, trend reversals, or events, such as airdrops.
- Forex Trading Signals: concentrating on currency pairs traded in the foreign exchange market. They provide trade insights based on technical analysis, news reports and events impacting currency prices.
Each type of these instrument-specific signals offers advantages and has limitations. Based on your own strategy, using signals from these areas could help improve your strategy and support diversifying your portfolio. Through integrating instrument-specific signals into your trading approach, investors can enhance their decision-making process and achieve greater profitability.
Benefits and Application of Trading Signals
Trading Signals offer benefits for traders of all levels of experience:
For new traders: Signals provide an opportunity to potentially earn profit while also learning how to navigate financial markets. Following signals and understanding the logic behind them, beginners can learn more about trading strategies and market dynamics.
For Experienced Traders: Signals can enhance profits, expand portfolios, and explore new trading opportunities that align with their existing strategies.
Trading signals help traders save time allowing them to focus on execution of a trade rather than market analysis.
Using Trading Signals Effectively
To use trading signals effectively, traders should:
- Assess Risk Tolerance: determine appropriate position sizes for each signal. Volatile assets may require smaller lot sizes to mitigate risks, meanwhile a more reliable signal provider may allow for larger lot sizes.
- Avoid High-Impact Events: avoid trading during high-impact events as this increases risk.
- Incorporate Risk Management: always include risk into strategies, such as a stop-loss to protect against unexpected market moves.
How to follow our signal providers:
This is my [Arran] own personal method of following each signal provider:
How to follow our signal providers – 1st2Notify (youtube.com)
I use different % risk for personal and funded accounts, this is to stay within the funded accounts maximum drawdown limit.
o Jake: Personal: 2-3% Funded: 1%
o As Jake’s success rate is incredibly high, I feel comfortable placing all of his trades. They are often called with plenty of time to enter, if they are not a stop/limit order. In some of his trades there will be an open Take Profit, although he will update you when he decides to close.
o Josh: Personal: 2-3% Funded: 1%
o I take all of Josh’s Gold and Oil trades, and don’t place any of his GBPJPY trades, as they are too risky for me and overall have less success. He will monitor the charts and update on his SL and TP as the trade unfolds.
o Arran (myself) Personal: 2% for Gold | 0.5% for US100 Funded: 0.5% for Gold | 0.25% for US100
o My gold trades are the most successful. While my US100 trades have higher returns, they are less consistent, which is why I use a lower risk for those.
o Flex Personal: 2-3% Funded: 0.25-1%
o While his signals outside his lives are less successful, he more than makes up for it in the silver bullet sessions he does every day. I tend not to trade his other signals, but I make an effort to catch every single live trade he makes. His live trades often have a very very high R:R, which means that his wins might be less frequent – but each win is usually enormous!
o Mac Personal: 2% Funded: 0.25-0.5%
o High risk, but high reward trades. I try to catch all of these trades.
Conclusion:
Trading signals offer valuable opportunities for profitable trades. Whether you’re a beginner looking to learn the financial markets or an experienced trader seeking to expand your portfolio.
By using our trading signals effectively, you can enhance your trading and increase your chances of success.
