Its a difficult task to find a good forex signals provider that will work for most people. Some of the reasons being;
The Internet is full of rubbish third party signal providers whom
have excellent looking websites and convincing testimonial references
that amount to nothing. It is very difficult to research and sort
through so many signal providers to find a legitimate service that
delivers good results consistently.
Many people fall for the good looking website along with high
priced subscription service rates, believing that an expensive looking
website with expensive signals is an indication of
quality forex signals. They decide to try the signal provider for a
couple of months and find out that they have just wasted not only money
on the subscription fees but also lost money on the bad signals issued.
A lot of review sites recommend signal provides that provide most
referral fees for themselves. They would rather have your money than a
No doubt you have already read many of the bad signal service reviews from ex-clients on various forex review sites.
You will notice a lot of people have been hurt by using forex
signal providers. Even if the problem is not always with the signal
service provider, clients can also have the misfortune of hurting
themselves in one way or another.
Like being unfortunate enough to start receiving trading signals
during a temporary losing streak. If the trader is not using correct
money management principles relating to correct position sizing, this
losing streak could wipe out the traders funds completely so that a
recovery may not be possible. The trader should realize that losing
streaks are a normal part of trading and needs to be factored into the
position sizing, money management formula.
What happens during a rough patch
Even good forex signal providers can have a bad month or two
within the whole year. The big question is; Can you or should you put
enough trust in them to keep trading their signals after a rough patch?
Will their performance return to normal? Or has something else caused
the bad results? It would be unfair if the trader complains about the
signal service provider's performance without giving the provider a
reasonable length of time to get back on track. But, once again here
comes the problem, can the trader trust the signal provider and enter
recommended trades after several losing trades? More than likely the
trader will sit on the sidelines and watch what happens after the losing
streak. This means that the winning trades will not be entered and once
again our trader is frustrated by not taking those positions. See the
possible problems when the trader does not have complete trust in the
signal service providers recommendations! Who can blame the trader for
not wanting to risk more of his money on possible future losing trades?
Resignation of chief forecaster
Other questions arise like what happens if the chief person
responsible for market forecasts leaves the signal providers firm? Is
there a person capable of taking over operations that will be as
successful as his predecessor? Is the signal provider using a mechanical
system or software that will be able to carry on should the key person
resign from the firm?
Correct position sizing
Also, will the trader use the correct position sizing when
trading the signal providers signals? As explained above if not, then
the traders account balance may not survive a losing streak. (Losing
streaks are a possibility with any type of trading system).
Some signal providers issue too many alerts that encourage over
trading. But then the problem is what if you don't take all the
recommended signals? That means you could miss out on some of the best
trades they issue? When you ask them why you have not done as well as
their past performance history they will say that you did not take all
the recommended trades.
Can you trust the signal service provider or yourself?
Can you really trust the signal service provider or yourself with
all the issues listed above? My research into signal providers has lead
me to believe that this is a MAJOR problem area for forex traders. So
called "expert signal providers" charging large amounts of money for low
trading signals. Expert signal providers whom are willing to sacrifice
large sums of your money on unsound trading principles. Yes, hard to
believe but its true. They are out there. I have even come across one
signal service provider whom said his firm will 'never-ever' take a loss
as they will just wait for the market to 'turnaround' and come good
again. That way the company can keep advertising its 100% accurate
signals. Hard to believe, yet true!
Recommendation to exercise EXTREME CAUTION
For the reasons above, my recommendation is to save your money and stay away from third party forex trading signal providers.
The only exception to this suggestion is that the forex signal service provider has held a good reputation for several years within the forex community with a satisfactory past performance record verified by a independent third party, and also explains their trading methodology so you can factor in any potential risk. You would also have to understand correct position sizing and money management so as not to over trade.
Good forex signal provider
If you think you have found a possible good forex signal service
provider remember that they should provide you with past trading history
results. If these prove to be false they can be prosecuted under the
law for publishing false and misleading information. A good signal
provider should also provide a free trial. Free trials show that they
have confidence in their signals and they are not just trying to make
money from you for a few months. Good customer support and service are
also expected from good signal providers.
WHOIS domain check
Before you decide to trial a forex signal service provider who's reputation is not well known in the forex community it is prudent to do a WHOIS domain check. This can be done at www.internic.net
Simply type in the name of the domain and you will find out when that website name was registered. If the trading history is for a longer period than registration date, then we have to ask why? Be on the alert for scams with newly registered domains.
Have you tried a forex trading signals provider in the past? We would love to hear your experience at brainyforex public reviews. Go there now.