“If you give a man a fish, he will be hungry tomorrow. If you teach a man to fish, he will be richer forever.”

Except for the actual execution of trade entries, forex signal services perform all of the functions of a robot. A “professional” trader may provide trading signals (for a price, of course) for customers to act on, in addition to maybe employing an automated program. You may, however, be paying for a signal for which you have no idea what the reasoning is or how the “expert” came up with it. You have no understanding what the transaction is based on; all you know is that the “expert” says it’s a good time to buy or sell. Finally, you’re depending on a third-party source’s analysis rather than your own. In a normal forex signal service, the programmer builds a set of technical indicators and rules, which are then followed by the software. If the price action meets the signal service’s criteria, the user will get an email or text message with a notification or alert to respond. The user must eventually determine whether or not to take the signal and trade it. While it may appear that you have greater control over whether or not to trade, the signal service is still programmed to follow a set of regulations. If such case was so profitable, why would anyone bother with forex signals in the first place? Instead, they should concentrate on trading with their signals and amassing a fortune for themselves.

Now let’s look at evolved way to help traders. Let’s call this group confluence providers. Confluence providers also share the trade they’re taking on; however, unlike “Signal providers” they fully explain the reasoning behind the trade. This group is called confluence providers, because you can usually compare your own bias and analysis with the detailed description of theirs. The picture above can serve as a good comparison between these two categories. Feel, free to share your personal experiences.

NOTE: Forex market is full of unethical people trying to steal your money, so use your common sense when something is too good to be true.