The Forex trading industry is largely unregulated so it’s no surprise to see traders being lured by get rich schemes and marketing gimmicks.
One of the marketing gimmick that stands out is the signal service provided to traders.
It may sound attractive at first, for the layman who only wants to know when to buy/sell to profit accordingly.
But does it really work? Can traders really make money in the long run?
I highly doubt so and here are my reasons why..
1) Your Emotions
Assuming you have signal provider that makes money consistently, you will still fail. Why?
Because you do not have faith behind the trading strategy. And when a series of losses kicks in you will start to doubt the signals and not trade it. The only way to execute your trades consistently is to develop your own trading plan and not blindly following others.
2) Conflict of Interest
A signal service would require you to pay a monthly subscription whether you make money or not. Do you think they will waive off your subscription just because you lost money?
Notice how eager they are for your monthly subscription?
If they really had your interest, the remuneration scheme should be paid only when you make money.
3) Hedge Funds Don’t Provide Signal Service
The consistently profitable hedge funds in the world do not sell their trading signals. Why would they when they make more managing other people’s money. This should lead you to wonder who are the ones providing these signals?
4) Look around you
In my entire trading career, I have yet to come across a trader who makes money consistently following trading signals. Look around your circle of contacts, do you know of anyone?
If you don’t know anyone who makes money consistently from signal service, what makes you think you will be the one?
There are lots of marketing gimmicks in the trading industry and signal service is one of them.
But let’s be realistic with expectations and not allow our emotions to blind us from the obvious.
The easier they make you think it is easy to make money, the faster you should run away.
So, what are your experience with a signal service provider?