Forex signals are guideposts for every Forex trader. Depending on the interpretation of the trader as well as the position they are in, a specific signal or group of signals can signify entry, inaction, exit, etc. Traders therefore hone their skills to identify specific signals in isolation and as a part of a bigger picture. Once identified a specific plan of attack can then be formulated either in the spur of the moment or as part of a methodical system of action and reaction. This article will discuss how Forex strategies are formulated via human intelligence and/or artificial intelligence. It also provides a short discussion on the advantages of each approach.
Forex Signals: Human Intelligence
This is where proper education training and experience comes in. Due diligence in one’s studies and then the appropriate amount of training and experience are indispensable tools for a trader. It helps that the trader gets real time alerts as well as unfiltered information to formulate strategy via filtered and raw information. However, the latter usually requires a lot of manpower. Experts agree that a properly honed trader is unmatched by any software or artificial intelligence. This is because they are able to look beyond patterns and use their experience as well as intuition to generate a viable tactic effectively and efficiently. Of course, one cannot always get it right. The key is being right more times than you are wrong which translates to more profits at regular intervals; minimal losses from varying and difficult situations rather than through ineptitude.
Forex Signals: Artificial Intelligence
Forex software provides beginners with access to trade strategies after data is inputted. The problem with software is that it relies heavily on the programmers inputted and the data inputted by the user. The reality is there is only so much data a programmer can process into software. In addition, this relies heavily on previous Forex patterns rather than a complete reading of the current financial market. Of course there is also the danger of a misinformed user inputting the wrong data and selecting the wrong functionality.
Forex Signals: Human and Artificial Intelligence as One
The correct approach is the convergence of a highly skilled trader with the most up to date software. This can be used not only to predict the next signal but as a training tool to sharpen the mind and boost confidence. This way any shortcomings of one can be filled in by the other. Of course the trader will not be able to predict everything correctly, but the likelihood of failure is minimized and the chance for success is increased.
Forex Signals: Demo Accounts
Demo accounts allow traders to select the right software and the right combination of functionalities for free or for a minimal fee. The best match is then selected for paid membership. It is very important to understand that choosing from several or even dozens of demo accounts is the key to find the best match. And do not forget, proper reading of the interface is necessary for maximum use.