Everyone that want to use trading signals always looking for accurate forex signals, but most of them don’t know what an accurate signal really is. There are several good signal providers out there, but most of them get bad reviews everywhere because some novices are still living in the dreamland when they use the signals.
What I imply by “live in the dreamland”? Below are a few blunders that they made:
1. They believe that the signals are 100% accurate
When these novices receive their very first notification, they will immediately execute the trade, then expect profits to come out. If the trade ends up as a losing trade, they get upset and stop the services right away.
You can pretty much guess the next thing they do: login into various forums, acting like a victim, and post negative reviews all over the place. That is why you will discover some extremely inaccurate reviews in the forums.
Here is the truth that I really think that everyone in currency trading world must have knew already: no one can forecast where the market will move next. We can merely predict to a certain degree of precision based on analysis, experience, and (perhaps) hunch. Nonetheless, it will NEVER 100% correct.
Think it over; if a signal service can provide you with 15 profitable trades from 20 trades, would you consider it as a good signal service? Of course you would! Nonetheless, is it possible that the exact same signal gives you three consecutive loss trades at the start? Sure, it is possible too; especially if you begin trading at a bad time.
When you have three or four loss trades right after you started using the signals, don’t panic and start acting like you’ve been scammed. Keep a cool head and watch if the next signal can make up for the loss. This is possible if the signal uses good risk reward ratio. But how to check this out without lose your money? Look at next factor.
2. They will not even take the time to evaluate the signal effectiveness
Okay, so you got recommendation and suggestion. You read the entire article in the provider’s website. You ask around in forums and read 30 different reviews of the product. Still, it is not good enough reason to put your own money in the line immediately.
Getting yourself a practice account is not a difficult thing to do and you virtually can get as tens or hundreds of them. Help yourself a little. Start a practice account and test the accuracy of the signals by utilizing their guarantee period. You need to invest some time and effort into this, but it could save you from bigger troubles later on.
3. They have no basic principles in trading forex
The signals are merely tools. Using the existing technology, you can easily make them auto-execute. Nonetheless, you choose to use a signal service given that it allows you to decide what to do with the notification right?
If you have a little understanding in trading forex, at the very least you’re able to do the following:
– Pinpointing bad market condition and decide not to enter any trade for that period
– When the market is trending, there is bigger profit potential that you can get. If you can recognize it, you’ll be able to modify the take profit order for more profits.
Naturally, your decision will not always correct, but if you possess solid basics in trading forex, at least you are able to:
– Save yourself from several loss trades.
– Have got more reasonable expectation from the signals, hence you can act and evaluate the situation calmly whenever things don’t work out as you planned.
Look into learn to trade the forex to pinpoint the most important thing to learn first.
Looking and recognizing accurate forex signals shouldn’t be a really hard thing to do. Just make sure to spare some time to open a demo account and learn the basics of forex trading. It might take several weeks to see the real result of the test and let the lesson sink in, but they will save you from greater troubles in the future.