I have been trying to trade Forex for a couple of years and am still waiting to become successful. Can a “Forex Trade Alert Service” that tells me what trades to do make some money for me whilst I learn?
That question is one I must have been asked a hundred times in the last couple of years by aspiring traders who have contacted me.
The honest answer is, maybe, maybe not. It depends what you want…..
Most trade alert providers are websites set-up especially for the purpose of “selling” trading signals to customers. Check it out – type “forex signal service” into Google and the list will give you 100’s of websites dedicated to giving you a signal service.
Because it makes them money and there’s nothing wrong with that providing they deliver what they promise – so do they really work?
Without signing up to 20 of them and using their alerts for many months there’s no way to say for sure but there are clues in what they say and claim. By the way I suspect price has nothing to do with the success or otherwise of the service.
Several have claims for historic results ranging from the very believable 64% annual profit to the outrageous 780% annual profit. As a Professional Forex Trader for over 6 years let me tell you the truth – it’s possible for a good trader to make a 100% profit on their account every 2500 bars. So the timeframe is irrelevant (although longer timeframes DO have higher success rates) . If a trader trades a 5 minute chart then he’ll only be able to concentrate on maybe 2 markets and trade for 4 hours a day which means making 100% profit every 5 weeks. This is the very very high end of profitable trading. It’s is impossible for a trader to use this sort of trading as a trade alert service as trades are made in seconds and decisions change with market conditions continually.
At the other end of the spectrum is trading daily charts where maybe 20 markets could be traded which means 100% profit could be made in a little over 6 months.
This is the top end of success for a professional giving his daily trade alerts as a signal service. More likely would be 100% profit in 9 months to a year.
Even this seems fantastic when compared to the paltry profits from “fund managers”, banks, and most other readily available and accepted forms of investment. A good hedge fund manager would achieve maybe 40% annually but here’s the difference – they HAVE to invest the money in the fund. If they have a pot of $40m then most of that is expected to be invested into “something” which will make money. The pressure is to not have money sitting doing nothing in a cash account but to be seen to have it at work for the investors in the fund.
An individual or very small private fund forex trader has no such pressures. He can decide when and where to “invest” and how much according to ever changing conditions. There will be times when for maybe days or even weeks the market is such that he decides not to trade at all, to sit back and wait for the right conditions, to only play the game when the odds are in his favour.
That’s why a private professional trader can easily out perform a well known fund manager and that’s where you can benefit from a signal service.
Look for a “Professional” forex trader offering signals based on his knowledge and experience, not some robot or Expert Advisor software – they are simply rubbish to con the unknowing.
Signals from 4 hour charts and upwards are the only practical way to offer such a service. Ensure signals are completely unambiguous and clear with no interpretation required by you.
Yes, you can make money from a profitable signal service but you need to do homework to ensure you do it right. And most of all start small when you have decided on one and use the profits to grow you account – maybe slowly add to it as it grows if it really is successful. DO NOT expect any signal service to get you rich quick, if you do you will join the thousands who lose money by choosing the hyped up, exaggerated sales pitch offered by those who are in the game simply to make money out of you.
Honest, and successful forex signal services are out there waiting for you.