Probably I will break the business of signal providers, but I would like to share with you my personal experience with signal providers. I would like to address this post to beginner traders who really want to become successful traders and use trading signals just because they don’t know about the proper way and they don’t see better alternatives.
Trading signals won’t make you rich! It’s my position supported by my knowledge and experience. I have been trading since 2013 but before that i also failed on forex signals and a lot of different educations. I know what I’m talking about. Trading signals can’t make you rich, because they represent only a small part of the whole knowledge which every trader must have. Trading signals, they are just a tool which can make money or lose money. When you start following signals without knowledge and experience, you are not far from making mistakes. Mistakes lead to blow up capitals in the financial markets. You can’t use trading signals properly because you don’t have knowledge and experience. What do you know about proper money management? What do you know about drawdown? What do you know about controlling your emotions? If you are a beginner, of course, you know nothing. But instead of getting important knowledge about trading, you focus on the most simple way. Trading signals allow you to start making money right now. As you want to get results right now and improve your life just right now, of course, you begin following signal providers and signals as the tool which can make your dreams come true.
«Get Lambo for one week» – sounds interesting. What do you need for this? Oh, just buy signals and your dream will come true. It’s simple! It’s cool!
«If you want to become a profitable trader, you need to learn the theory and practice with proper education, from someone who went through this and is actually profitable. Only after that, you will be able to become a successful trader» – it sounds too complicated- believe me its not ;D
You must remember, even you use trading signals from a very good source. Even a trader or signal service are not scammers and really provide you with high-quality signals. One day you will face with the drawdown. Because there will be 1,2,3 – 10 loss trades in a raw and it will hurt you. Negative emotions will overload you and they will push you to make mistakes. If professional traders can pass such period of drawdowns easily because they have trade plan and believe in it, novice traders have nothing, only emotions and they start a panic. As a result – they have to search for new capital and start from the beginning. In the worst case they will search for new signal provider which is maybe really bad and you will lose money fast..
One day, you will realise how much time and money you spent for nothing. You could spend it on getting knowledge and only after that use trading signals for getting experience from real trading. Much better is to start trading on your own after you master some strategy etc. and be independent because forex is for everyone who is dedicated. You can trade on small or high time frame so time is not your boss.
Another thing is..
Returns in dollars, pips or returns in %?
There are online brokers and trading platforms which assure you that 10 thousand USD monthly, several thousand daily, or $500 hourly is a possible case scenario for any trader. Such claims should make you alert at once, as they smell of false promises. The reason is not that such sums are impossible — a true trader should know that Forex returns are measured in %, but not in pips or USD (or any other currency). The figures themselves do not mean anything. Any revenue depends on your investments, and a figure you earn must be transferred into percentage. $10,000 a month would be nothing if you invest $10 million, and, vice versa, it would be impossible with an investment of $1,000.
It’s normal to have certain expectations of the minimum profit in exact numbers, but it should be commensurable with your own trading capital. Consequently, the more you want to earn, the more you need to invest if you want to trade with right risk management.
We truly advice you to ask yourself what do you want, learn something and be independent-profitable or blindly follow someone and do not know what are you doing.