I got a free trail to Daily FX plus and i have been trading with a demo account. I was wondering if there is a foreseeable issue when most of the trades i make are from signals? I will say that iam doing better trading from the signals, just wondering what some of the more experienced traders think.
It all depends on the quality of the signals given.
This game is so subjective, one SP might be saying buy, the other one sell, and they could both be right. In fact, more often than not, they are.
If it’s working for you, and profitable, then who’s to say it’s wrong?
Keep your risk management front and center, and you should be just fine.
The only other issue some people might see is that you may be totally dependent on someone else for your trading, and in this you are losing out on understanding how to trade for yourself and have some level of independence but as Master Tang says, if it is working for you . . .
Absolutely. If you intend to make a career of this, then I would want to be learning how to trade independently alongside happily making money from the signals. After all, you can’t make much of a plan for the future if the signals provider suddenly disappears on you, but certainly if they are working out then I would not worry about using them. As Tang says, as long as you have sensible risk management in place then anything that pays out money is worth doing. I’d just learn to trade, too, so you have a backup.
Another way to look at it is, what happens if these signals (that were initially profitable) become loss making? Do you carry on applying these signals and continue to lose money…
I echo SimonTemplar, Scottish Mike and Master Tang but highly recommend “getting your hands dirty” and learning all about forex and coming up with your own signals. Good luck.
IMO the best way to become proficient as a trader is to spend a long time learning and trying different things. Unfortunately, opposite to what you will read in all those “get rich easy offers” and all the other junk out there, to stand on your own two feet in this game is possible but it takes hard work. There may be good signal providers out there, but there are also scam artists at that too, and it still begs the question no matter how cynical it sounds, why if someone is good enough to make their own money on forex, to they feel the need to charge others for signals ?
Trash as many demo accounts as you need, even trashing a few $100 accounts (to get a feel of trading live) is money better spent on learning (IMO). A simple college course here can cost £200 which is possibly around $300 in comparison. Like Simon says (pardon the pun) if your trusty signals provider disappears you will be left high and dry and looking for another who might not be so reliable / profitable / trustworthy.
Best to learn it for yourself.
as long it works for you and at the end of the month you have profit is OK but meanwhile make your own strategy just in case, who knows maybe you can do better.
I’ll jump on board this one also, Money and Risk management high priority, get yourself independent for the long haul, but enjoy the signals while they last.
Cheers!,
fi
You should figure out how successful these signals have been before you jump on board and trust them. Research, research, research.
Never buy signals!
You are buying the cat in the sack - no provider will disclose the rationale behind a signal (if there is any). Anyone could send out any “signal”!! You would be trading blindly. Would you hand out your money anyone in the street and hope that he would give it back to you and, in addition, an extra return??
Besides that: Signals will always be delayed - in fast moving markets you will never be able to execute at the signaled price.
Besides that: if you are thinking of buying signals: do the offer a risk/reward ratio that makes sense??
And always calculate the amount of money you have to spend just for the signals: 29, 49, 99 dollars a month?! This would be 348, 588 or 1.188 dollars p.a…how big is your account? 10.000 dollars? Then you would have to make 3.48%/5.88%/11.88 % only to break even!! Many high respected fund managers would be happy in case they would make such profits!
:53:
Kind regards
Thomas
I think if you are using signals then you might as well be placing your money in a fund and become stress free.
Well, I don’t think there is nothing wrong to trade with signals, of course you have to be sure your signals provider is a professional and responsible trader, otherwise your account will be blown up, you have to research a lot until you find a good signal provider. Until now I have not found not even one, maybe you are lucky if so, please share you experience here in the forum. Good luck!
The difference between signals and a fund is that funds generally trade very conservatively aiming for circa 20% returns per year.
A good signal can generate 20% per month (obviously with more risk). So if you want to make more aggressive returns I believe it’s a better way to go.
Check out my video journal following signals as I try to reach financial freedom using them.
Yeah, they all suck
How can you say they all suck???
I’m trading a bunch of them very successfully.
I agree with what Master Tang said. It all depends on the signals, the major draw-back is that you do not learn how to trade yourself. One thing I would recommend is that you should follow their trades on paper and see how accurate the signals are that you receive.
I did that with my brokers recommendations for four months before I decided to place a trade based on their recommendations. Now I have opened a second account with only a small portion of my capital inside that follows my brokers trades as I am comfortable with their recommendations while I still do most of my trading on my own.
There is nothing wrong with following signals, but I would not put all my funds into one outlet.