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Novice and expert traders agree that trading signal subscription services are useful trading tools. Using trading signals to help with buy and sell decisions eliminates some of the guesswork. However, the foreign exchange market (FOREX) is always unpredictable. Even the most skilled analysts sometimes make errors in judgment. Or, the market takes a turn so unexpected that analysts and traders are taken by surprise. Generally speaking, however, trading signals tend to produce more profits than losses.

"Trading signals" are simply advice and recommendations on buying or selling on FOREX. They are delivered electronically to traders when they open an account with a trading signal company. These signals are based on algorithms developed by experts. The algorithms analyze an individual trader's profile and criteria. They compare these against the current market status and prices. They then make buy and sell recommendations based on this data. The subscriber receives e-mail notifications outlining these recommendations.

Each buy and sell signal consists of two price data. They are "take profit" and "stop loss." A "take profit" indicates that the price of a currency is trading higher than it was at the time an order was placed. Using the euro as an example, a trader may see an upward swing in the price. The higher it rises, the more it will be traded. The investor decides his target price and places the order. When the euro reaches the "take profit" level, the profit is automatically transferred to his account.

A "stop loss" is based on a trader's own criteria for minimizing the risk of loss. The trader pre-sets this target based on his own comfort level. It is an order given to a broker to buy or sell a stock when it reaches a particular price. The "stop loss" is the trader's hedge. The investor's euros will be sold when their value falls below the price at the time of order.

There are several advantages to using trading signal subscription services:

* It takes much of the guesswork out of trading on FOREX. It's like having a panel of experts working for you. Trading signal services relies on data and market analysis gathered by those who know FOREX. Financial professionals, mathematicians and computer programmers contribute to the development of the software. The algorithms make determinations based on this information plus the trader's criteria and the current market status. The result is a trading signal delivery system tailor-made for each individual trader.

* It's possible to make multiple trades simultaneously. A lone trader cannot be tied to a computer screen all day long watching the market. The market also changes quickly and frequently. What was true of a currency's value in the morning may be old news by noon. Instead, the investor can watch for his trading signals as they flow in. He can make multiple trades and be assured that his criteria are followed.

* You can "try before you buy." It can be daunting to place money on a system that you've never used before. That's why most trading signal subscription services recommend demo or practice accounts provided by FOREX brokers. Traders are given virtual credit. The investor can set his criteria and then play the market virtually. It usually takes only a few weeks to understand the signals. The trader can gauge his virtual success and decide whether a subscription would be worthwhile. People who use practice accounts typically find the experience educational, insightful and valuable.

There are numerous trading signal subscription services to choose from. Most range in price from $50 to $100 per month. Most offer the same basic services. Packages vary slightly from company to company. To name a few, Forex Trend System and Forex Winning Signals are well known subscription services with trial membership. Comparison shopping and trying demo accounts from several services can help you choose.

Kote Dylan is a beginner of FOREX trader. He has traded the market with a demo account. For those who are new to FOREX, it is recommended to visit Forex Trading System Product Reviews and find out which trading software, tutorial or trading signal subscription service fits your need and budget.