Free Forex signals are there for the taking virtually everywhere you turn…but should you even be looking for free Forex signals?

First let’s start off with a definition of what a Forex signal is. A Forex signal is an indication to take action generated by a Forex trading system (a set of rules designed to trade Forex profitably). Forex signals may take several different forms:

Buy Signal – This type of signal tells us that we need to buy a currecny pair to enter a long trade or buy back a currency pair to exit a short trade

Sell Signal – This type of signal tells us that we need to sell short a currecny pair to enter a short trade or sell a currency pair to exit a long trade

Adjustment Signal – This type of signal informs us that we need to make and adjustment of some sort. That adjustment may be as simple as changing our current stop loss and adjusting it in the direction of the market’s movement (trailing stop).

No Signal – Some might not consider “no signal” to not be a signal at all. When there is no signal we simply take no action.

Now back to our question, “should you even be looking for free Forex signals?” Probably not. Not that it is always the case, but oftentimes when you are asking for something for free that can possbily make you money it is a step in the wrong direction. Why? Because “free” does not mean profitable and effective. Generally the cost of a forex signal may very well not be your greatest expense. If the signals are not reliable you could stand to lose a great deal of money. It is for this reason that I stress “profitable” over free.

Another reason you may not want to look for a free forex signal is that it speaks to your level of preparednesss to trade the markets. If you were looking to make a real success of Forex trading you probably would understand that it take money to make money. It is pretty certain that successful Forex traders are not spending their time looking for free forex signals

Does all the above mean that all free Forex signals are bad? Absolutely not, but if you are looking to get all of your Forex trading tools for free you may be telling yourself either conciously or subconciously that you are trying to make money in the Forex market without being fully prepared.