When newbies come across forex they try all the possible ways to make money. But do forex signals work?
In today’s article, we will focus on this topic.
So why do people try forex signals?
Comfort. Once you sign up with a forex signal group all you have to do is Buy or Sell on a particular pair with the Stop loss and take profit provided.
You don’t analyze the markets, so you save time and rely on someone else to make money.
This may sound simple and easy, but let’s take a step back to really understand what you are doing.
Firstly, you are relying on some stranger that you followed blindly based on their screenshots and testimonials to help you make money. Would you give a chunk of your hard-earned savings to a stranger just because they said they can double it within a month?
You do not know whether they are fake or real. There are many scammers out there who try and lure people into joining their subscriptions and promise to make 30-40% gains or even more.
While it could be possible to make such gains, at the same time it is really hard and there are not many traders out there who can do this every month consistently.
If it was that easy everyone would be doing it.
All you are doing is signing up to give them a second source of income. This is how they actually make their money and flash their expensive lifestyle. Most of them don’t actually know how to trade.
I’m not saying that all forex signals are bad, there could be some good ones out there. But they could be very hard to find, by the time you find one you could actually have lost alot of money or given up on trading. So it’s not worth it.
Want to be a professional trader
If you want to eventually become a professional trader by trying to learn from a signal group, I would say save your time and STOP NOW.
Professional traders do not rely on other people’s signals to make money. They do their own analysis on the weekend, make a plan and then trade the market when it opens.
They are accountable for their own actions. If they make a loss they take it on the chin and move on. They don’t blame or point fingers at someone else.
You are responsible for your own actions the moment you press the buy or sell button.
To become professional or an expert at something you need to know what you are doing. You can’t sit in a commercial plane cockpit and then ask another pilot what to do every minute if you wanted to be a pilot. You wouldn’t even be there in the first place. It take 3 or 4 years at a minimum to even start flying a commercial plane. You have to go through all the theory, hours and hours in the simulator, fly small planes, pass the exams, plenty of hours again and experience of flying in the air before you can fly the big one. Plenty of lives are at stake.
Would you trust a trainee doctor to do your operation?
It’s the same with forex. You need to learn the theory, have a plan, spend plenty of hours trading live markets, learn to take losses, learn to deal with emotions. It takes many years to actually start becoming a profitable trader. Forget the illusion that you can start making thousands after being in the market for a year.
Here is an article written by my mentor Marc a while ago on how to become a professional trader.
It needs to fit your style and routine
When you join a signal group, you will receive 5 or 6 signals on an average everyday. Now you might actually not be able to take all the trades as you might be working different hours during the day. I don’t want to include just office workers and people working from home but also who do manual labour as they might not be able to check their phones during their shift as much as office workers can. You can receive these signals any time during the day so you have to be prepared to take it when the signal comes through.
I will explain why this is very crucial. When the signal comes through they give you an ‘Entry’ point, Fixed stop loss based on that entry (risk) and then your Take Profit. For any newbie who copies these signals blindly not knowing what they are doing are not aware its not as simple. Lets just say you get the signal at 10.30 am, but you were busy and check your phone at 11 am.
For or the purpose of this example, The entry on EURUSD Buy signal was at 1.05000, stop loss 1.04700 (30 pip stop loss). But at 11 am when you go to place the trade it has moved up 50 pips to 1.05500, you are now actually risking 80 pips. So its very probable that the trade could have been completed already and now it starts moving back down. Your trade moves to the entry, at this point you have taken a 50 pip loss. If you decide to hold it to the original stop loss thinking it will head up you have taken a 80 pip loss. Depending on the lot size you took, you have now taken a BIG loss on your account.
My own experience
When I first came across forex I did all the silly mistakes. First one was copying signals from a person on Instagram who I thought was making good money looking at his lavish lifestyle.
I made some money on a small £250 pound account in the first few trades, but after that I was taking a lot of loses. My loses were bigger than my winners.
It took me 3 months to realise that I wasn’t actually making any profit. By then I had already lost around £1200. I wasn’t disappointed but I took it as a lesson as I knew there was money to be made if I knew what I was doing. This is when I started looking for courses and I came across Forex Mentor Pro.
I had a call with Marc Walton and told him my situation. He told me to stop trading on a live account and practice on a demo. I also ended up taking some private coaching classes with him as I was serious about it. It was the best investment I made. Marc thought me how to read charts, mentality when approaching trades. He also showed me how the longer timeframes helped him to get the most profitable trades over the 20 years he has been trading in the market.
Dont believe me? here is an example of a person claiming to have made millions and boasting about his lifestyle. When in reality he has been flagged by the FCA and also been claimed by many amateurs that they have lost their money. Always do your research!(this is not the person I was copying trades from)
Moral of the story is, treat forex as a business and career prospect. Its not a get rich quick scheme. Its a real career that takes years of practice to master and become a profitable trader.
If you want to save your time and money, look no further. You can sign up using the link below.
We also have a free 14 day course in case you want to know what the course might contain. We are a genuine 5 star rated forex school who teach you how to trade.