Forex Signals-The Truth
As the title suggests, the following article we will go into both the Pros and Cons of Forex Signals. Giving you a real perceptive on what the TRADEPRO Academy thinks on the matter. The insight in the following article is based on the opinions of professional traders in the industry. What everyone should know is that the vast Forex market is not regulated as the Futures market is, as a consequence volume is hidden and is not a decisive tool in trading Forex like it is trading Futures.
Another aspect of this unregulated market is the fact that traders and gurus around the world are able to legally sell Forex signals, no matter the repercussions or win rate. Naturally those who sell losing signal after losing signal will probably not last long in the industry. In the UK Forex trading is even considered “gambling” and the profits are exempt from taxes. Which results in a lot of Forex traders stemming from the UK.
Having said that Forex trading can be very profitable as anyone with any size account can make their dreams come true and price action analysis works wonders on a technical analysis standpoint. We have developed a Forex Course that embodies the Price Action Strategy that is simple yet effective and used world wide. It is only fair to give traders both sides of the story, lets jump into the PROs and CONs.
There are many PROs to Forex signals, such as the signals themselves! If a trader pays for the signals, all they have to do is enter the trades into their account. Forex signals are an easy out. They save you time from analysis and prepare you with entry, exits and targets.
Another PRO to signals is, they have the potential to make you a lot of money. There are a lot of Forex “gurus” selling signals out there, odds are if they have been around for a long time, they know what they’re doing. If there is reputation behind a Forex signal sellers, they probably do have a large client list that still trusts them and carries out their trade signals. Again this is speculative and traders should do their due diligence.
The last PRO we have thought of is that the signals sold are relatively inexpensive. Many Forex gurus out there market their signals as a monthly subscription. Giving members access to daily trades, trading rooms and more. As a result the membership fees can be bought for about $10.00 and up. Some are even free! The cheaper ones usually lack some reputation.
After having listed some PROs of Forex signals, the right thing to do is dive into the CONs.
As many PROS there are to Forex signals, there are that many CONs. The main CON of Forex signals is; they could all be wrong! Professional or not, Forex in unregulated and anyone can be selling signals out there. Traders are unprotected. Traders blindly following signals of an internet guru are not doing their due diligence.
Another CON is that you are not learning anything from using Forex signals. If they do happen to be right and you get too comfortable with the signals, you will never learn how to actually trade for yourself. Once you do decide to leave the signal service, whether its because you decide to or the signals disband. You risk losing all the gains you got from the signal service trading on your own. You become too reliant on other people, and that is not what trading is about.
The final CON is that you bare 100% of the risk when using the signal service, which could just be a scam all together. The guru on the other end could just be picking random levels. Without ever having done a trade, and if by chance over 50% end up working over time. People will have an inclination to stick around. To top that off, you will be taking all the risk in taking their trades. If the signal goes against you. Resulting in stop out several times, you can’t go after the Forex signal provider looking for reimbursement. It’s unregulated!
Now that we’ve gone through the PROs and CONs of Forex signals. I hope TRADEPRO has not completely terrified traders from trading at all! We can conclude that Forex signals, among any other trading signals might not be the best way to go about trading. It certainly isn’t if you want to learn how to trade. TRADEPRO Academy has developed an extensive Forex course among others to help you guys get educated! Check it out here!
We strongly believe that traders should be educated and take the trades they feel comfortable taking and know why they’re trading. For that reason, TRADEPRO Academy has a slight bias against signals of any variety. We are firm advocates of being 100% responsible for what you take home from the markets and 100% responsible for what you lose.
If you want to join us in our live trading room, check out the Day Trader package here >
If you prefer to trade more passively, checkout our newsletter, trade ideas and live analysis in the Swing Trader package here >
The information contained in this post is solely for educational purposes, and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.