ARE FOREX SIGNAL PROVIDER PIP NUMBERS ALL THAT ARE IMPORTANT?

Using a Foreign Exchange signals service is a smart option for people who don’t want to go through the long learning curve of learning to trade Forex, or lack the time necessary to look for trade setups due to a busy schedule. And when seeking a Forex signals provider to subscribe to, it is the Forex signal provider proof that is most important. Obviously, you want to subscribe to a profitable signals service that can prove the results they claim really are the results they are getting.

Does Higher Pip Numbers Mean More Money?

In most cases, results are given in terms of pips won or lost. This leads many people to believe the more pips the better. Unfortunately, just knowing the number of pips is not enough information to determine the profitability of the trades.

The value of a pip is going to be calculated by using your account balance, the number of pips in the stop loss and the risk management strategy used to calculate the lot size you are going to use. It is very possible a signals service reporting 200-300 pips a month can actually make more money than a signals service reporting 1000 pips a month. Make sure to understand how the size of the stop loss and risk management effect the profitability of the service before making a decision based only on pip values.

The value of a pip is determined what lot size is used when you take a trade. The lot size differs for each Forex trader depending on their account balance and the risk management formula they use to determine lot size. This needs to be taken into account when determining the profitability of a Forex signals service.

Let’s say you are placing a trade with a 20 pip stop loss. The lot size you are going to use should be very different than if you were trading with a 200 pip stop loss. For example, if you were to use 0.1 lots, you would be putting at risk about $20 with a 20 pip stop, but that would be about $200 at risk for the second.

The point I am trying to make is that pip values by themselves are not enough information to determine the profitability of a Foreign Exchange signals service. You really need to look deeper into the results of the service. Only then can you make a wise choice about which daily Forex signals provider is right for you.

AndyW Forex Signals has been producing 200-300 pips a month. While this might not seem like a lot, it is quite a profitable way of trading. Instead of just showing pip values, this service provides risk management case studies so you can see the gains or losses using different money management strategies. You might be surprised at how profitable this Forex signals service can be.

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