How To Use Swing Trading Signals To Make Profits

swing trading signals
August 22, 2022
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Let’s face it: Forex trading is a risky business. Volatility is high, and the market is subject to extreme bouts of speculation. It’s important that you know what you’re doing, or at least have a reliable trading signals provider before entering this dangerous world.

If you don’t, you might end up like the other 80% of traders: at a loss. We don’t want that for you.

Swing trading is a way to make money on your own time, without having to watch the market constantly. You can use swing trading signals to help you identify potential trades based on certain criteria. Here’s how to choose a reliable provider and why you need one in the first place:

What Is Swing Trading?

Swing trading refers to a style of investing where you hold positions between a few days and a few weeks. After that short period, the position enters long-term territory or is closed outright.

It’s different from market timing because it doesn’t involve trying to predict when movements will occur. Instead, swing traders react to opportunities that arise within an overall trend that’s already underway. Swing trading is more about anticipating changes than predicting them.

What Are Forex Swing Trading Signals?

Swing trading signals are a type of technical analysis. They use the highs and lows of a market to identify mini trends that investors can take advantage of.

For example, a bullish trading signal would be created when the market makes higher lows and higher highs. A bearish signal would be created when the market makes lower lows and lower highs.

Forex Signals vs. Trading Robot

If you’ve been trading for some time, then you’re probably familiar with the use of trading bots. You’ve heard that millionaires like them and they have an impressive track record. But you’ve also heard the horror stories of people blowing their entire account because of a bot gone rogue.

So, what’s the difference between forex signals and trading robots? Let’s take a look:

Trading Signals Are Optional

Forex signals are trade recommendations from analysts after they review the market. These can be human analysts or computer algorithms from a competent programmer.

Either way, the analysis looks at the market’s history and makes predictions. Subscribers will receive alerts once the analysis has come to a conclusion. They can then decide for themselves whether they want to act on them.

Trading bots, on the other hand, are software programs that place trades on behalf of their users. You have little control over how your money is spent once you’ve added your trading criteria to the bot.

Bots May Be Less Profitable

In the Forex market, bots are trading on behalf of investors about 80% of the time. Yet, you don’t hear much about people making a killing off of them. That’s because bots are good at quantitative trading, but they’re not so great at qualitative analysis (identifying whether a particular trade is likely to be profitable in the long term).

In comparison, forex signals can be accurate up to 90% of the time and are done with a high-quality report. Of course, this is only true if you get your signals from a reputable source.

Why You Should Use a Signal Service Provider

Even if you choose to trade on your own, it’s still a good idea to use a signal service provider. Here’s why:

Trading Won’t Be So Time Consuming

Because forex signals do the heavy lifting of trading for you, there’s no need to spend insane amounts of time analyzing charts. Instead, you’ll have more time to concentrate on the things that matter most to your success.

For example, if you’re a beginner, you could use that extra time to learn how trading works. Or maybe you could spend it with your family and friends instead of wasting it watching candlesticks all day long.

You Can Make Money as a Beginner

When you’re a beginner, trading usually goes like this:

You dive right in and open a trading account, looking forward to making big profits. Then you realize finding the right entry and exit points is much more difficult than it was on your demo account. Before you know it, your account is empty.

And, like most beginners, you’ll start over and eventually get the hang of things and see some gains.

But what if you could skip those beginning losses altogether? That’s what a trading signal service provider is for. You won’t eliminate losses, but you can reduce them.

Avoid Emotional Trading

Emotions are a trader’s biggest enemy. You feel great when you win and awful when you lose. The more you feel, the less important your account balance becomes.

These trades shouldn’t be about feelings, but simple math. While your emotions may not be under control during trading, forex signals eliminate the need for you to make emotional decisions at all.

Free vs Paid Trading Signals

They say you get what you pay for. That’s true for trading advice too.

The company making the signals must have some way to make money, and it’s usually by getting you to sign up for a paid service.

While there are companies that may offer free services, they often give you limited information. You might not even receive real-time data.

Paid signal providers will give you their “secret sauce” for a fee. It’s often worth it because they’ve done all the research for you and can help save you time (and hopefully money).

Do your due diligence before signing up with any provider, however. Some aren’t as reputable as others and may take your money without providing quality signals.

How to Find a Reputable Trading Signals Provider?

A reputable trading provider will have an online presence that you can easily research. Thoroughly read their website and any social media profiles or blog posts they may have. While doing so, there are a few things you should look out for:


A long history usually means they are doing something right. You don’t have to call someone with 20 years in the industry, but you should look for a provider with more than a year or two of experience.


Especially if you’re new to trading, it’s important that you have someone around who can answer your questions and help you get started. The best signal providers offer their customers mentorship—that is, they explain why they are sending a particular swing trade signal and what the customer should do based on it.

Quality of Information

The best providers will give you access to detailed analysis and strategies, not just limited data. They should also offer real-time price information so you can make the most informed decisions possible.

How to Get Started Using Trading Signals?

We’ve already established that swing trading is profitable. We also know how to find people who will give you the information necessary to trade successfully.

So how do you get started? Keep reading.

Start With a Demo Trading Account on MetaTrader

You might not have much experience with the markets, but you can still start trading right away. Newcomers to the market should open a demo account with a well-known forex broker.

With these accounts, you can act on the trading signals without risking real money. If you receive positive results after a few weeks or months, then begin trading with real funds.

MetaTrader is a great place to start. It’s a free software where you can receive real-time market data, place and manage trades, and test forex trading strategies.

Test the Accuracy of the Signals

Even if you believe in the validity of the trading signals, execute them on a demo account before putting any real money at stake. That way, you’ll confirm that the forex signal service is legitimate and provides accurate trade alerts. It also enables you to get a feel for how well the system works and whether it’s valuable.

The service should give you at least a 70% success rate.

Fund Your Account

Now that you’re comfortable with your trading signal provider, it’s time to invest. In the beginning, it’s smart to start small. So begin with a broker’s minimum deposit as your trading funds.

Assuming that your trading signals are successful in the long term, you should be able to add at least 10k to your account. Why? With a trading account of that size, expect to make a decent profit that’s close to a full-time income.

Stick to the Suggestions

You might think that you can place your take-profit level wherever you want. After all, if the trading signal company is right about which direction prices will move in, then your trade should be successful anyway.

This may not work out the way you think.

Trading signal providers are often very specific about where you should be taking profits. If you ignore their instructions, then you may take on a lot more risk than they intended. This could mean that your trade is more likely to fail.

Try not to obsess over the details of your trades too much. If you believe in the trading signals, then just trust that someone who has done all of the research for you will do a better job of working out where take profits should be.

Is Swing Trading Risky?

Risk is a part of any trading practice, so there is no getting away from it. The best thing you can do is find ways to mitigate your risk, and swing trading has some excellent ways built into the process.

One of the key things that will help you avoid substantial losses is making sure that your stop-losses are in the right place before you even make a trade. This seems obvious, but many traders dive headfirst into a trade without taking the time to plan it. You can make sure that you are not one of these people by making sure that you always have stop losses in place before you enter a trade.

A Note to Beginners

Even though trading signals are more accurate than other strategies, you might still lose some money. And that’s okay.

Most traders can expect to lose at least some money when they’re beginning, but that doesn’t mean you should just give up. Even though the road to becoming a successful trader is long, it’s worth the effort. As long as you keep learning, practising, and improving your trading strategy, you’ll be able to increase your chances of making profits in the future.

Understand the Limitations of Swing Trading Signals

It’s important to understand that swing trading signals can’t predict the future with 100% accuracy. They’re simply a tool that you can use to help you make better decisions when trading.

Some things that affect prices that swing trading signals can’t take into account are:

The Overall Market Conditions

If the market is going in a general downward trend, it’s likely that even the best swing trading signals won’t be able to produce consistent profits. For example, if you buy when a currency has a bearish sentiment and the price continues falling, your positions will still lose money.

The News

Unexpected news events can cause even the strongest stocks to plummet. For example, if there’s a surprise announcement about a company’s earnings, then this could cause prices to move in an unpredictable way.

And while news and other factors impact the accuracy of your trading signals, you can still use them to get an edge in the market.

Find the Best Swing Trading Signals in Our Telegram Channel

Using swing trading signals is a great way to start Forex trading with little risk. If you want to try swing trading, join our telegram so that you can test out our signals. We’re confident that once you see how much easier it is to use our signals compared with other options on the market today, you’ll be hooked.

It’s wise to start investing as soon as possible because you never know how the market might change. Grow your income today so that when the market dips, you won’t be affected.

What do you know about reading swing trading signals? Learn some basic strategies for interpreting these signals and making profits.

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