Contents
What are trading signals?
Using trading signals simply means taking the same positions as another trader. The aim is to achieve the same performance as the other trader, without having to worry about technical or fundamental analysis. It’s ideal for people who don’t know how to trade and/or have difficulty managing their emotions.
What are the advantages and disadvantages of using trading signals?
The advantages of trading signals are that they don’t require analytical skills. What’s more, traders who follow signals will not be psychologically affected by the decisions they make. This is very useful for traders who are victims of overtrading.
The disadvantages of trading signals outweigh the advantages, and the only way to make the advantages worthwhile is to find a profitable signal provider.
- You’re dependent on the trading signal provider.
- You won’t be overtrading, but you’ll be hooked on your phone or computer to make sure you don’t miss a signal.
- There are far too many scams out there.
- Subscription fees and slippage have a major impact on profitability.
- It’s hard to catch 100% of trading signals, and missing winning trades is frustrating, especially when you don’t miss losing trades.
Generally, you pay a subscription fee to have access to the signals, or depending on the platform, you give back part of your profits. As you can see from the image below, one platform charges a monthly subscription plus 50% of profits. They’re really only thinking about their wallets, and you’ll be taking risks for a performance that’s bound to be negative.
Forex signals or copy trading
Forex signals and copy trading are two very different things.
Copy trading is done automatically. Our account is linked to another trader, and when he takes a position our account takes the same position but with a time lag. Depending on the platform used, you may need to leave your computer on or use a VPS.
How do I find the best trading signals?
Finding the best trading signals is the step you shouldn’t neglect. Competition is fierce, and there are many trading signal providers, as well as different platforms and sites for finding traders.
We’ll look at different criteria for choosing a signal provider.
Read online reviews of trading signals
Whether in trading signals or in different products, especially digital ones, you need to be wary of reviews. There are a lot of sites out there that give reviews, but they’re not at all objective. The purpose of their site is to give reviews, to compare different products: and the aim is to direct you to the merchant site, so that when you buy the product or service, they pocket a commission. They’re simply sites that build their business on affiliation.
What’s behind high-performance forex signals?
You can view the performance of trading signals in different ways, depending on the platform you use. Beware of those with a regular growth curve, as they’re probably using a martingale, so you’ll end up burning up your trading account. On telegram, for example, you need to be careful, as some traders erase losing trades from their history or modify orders. I’ve already written an article on these scams, I’ll put the link below in this article.
100% free trading signals – where’s the scam?
Those who offer free trading signals will ask you to open an account with a specific broker using their link. It’s called affiliation, so they’ll earn a commission when you open an account or on the volume of your transactions.
They don’t care whether you make money or lose money, but they’re sure to make money off you. Some will even tell you that the broker no longer meets their expectations, so they’ll ask you to open another account with another broker, so they can earn a second commission.
Telegram forex signals
There are a lot of forex trading signals on telegram. This shouldn’t be a selection criterion, but what’s important is the profitability and seriousness of the telegram channel.
Copy trading with metatrader 4 and 5
The metatrader 4 and 5 trading platforms offer a copy trading service, making it difficult to find a trader with a long track record. The disadvantage is that you have to leave your computer on or use a VPS, which means extra costs.
How to use trading signals
Trading signals are very easy to use. The hardest thing is to be present when a signal arrives to limit slippage. The signal provider sends the order with the stop-loss and the various take profits.
Intraday trading signals
These are often intraday trading signals, so you need to be available at all times to place the orders, which makes you dependent on the signals, and you also need to be sure of your network.
Becoming a home-based trader, a full-time job
Becoming a home-based trader is a full-time job, depending on your trading style. To be able to make a living from it, you’ll need a substantial amount of capital, depending on your needs.
Day trading is the most time-consuming type of trading. You need to monitor your positions and opportunities throughout the day.
Swing trading is less time-consuming, as you can take longer time units and therefore be less present in front of the screen.
There’s also scalping, which has the advantage of taking short positions, so you can have a session that’s not too long, even if you have to do two during the day. It’s a tougher activity psychologically, as the time for reflection is short.
Suppose you find a supplier of high-performance trading signals, what happens the day they stop? It’s important to be independent and not dependent on a signal provider.
Automate your trading
As we saw earlier, trading signals offer the advantage of not having to worry about decision-making. Our decisions are not affected by our psychology, because trading is not for everyone. Algorithmic trading is the best alternative. Orders are placed automatically and the performance of your account will not be impacted by the mismanagement of your emotions.
You’ll be able to backtest the strategy over a much longer period of time, and much more reliably than trading signals. You’ll also be able to manage your money more easily in relation to past performance. To smooth out the performance of your trading account, simply use several trading algorithms. The big advantage of automatic trading is that it doesn’t take up your time. You’ll be freer to act, because a trading signal won’t arrive at any moment – everything will happen automatically.
Follow forex signals via telegram
Whether on telegram, another platform or another site, you need to be very careful and take the precautions we’ve seen above. If you haven’t already read it, I recommend you read this article “Scamming telegram and other trading signals”.
When all is said and done, should I use trading signals?
Whether or not to use trading signals is a choice that everyone has to make for themselves. It’s our savings, so we shouldn’t do just anything with them. Personally, I don’t like trading signals, because I don’t know of any that are profitable. What’s more, you’re dependent on someone and you have to be constantly on your phone or computer in case a signal comes along.
Personally, I prefer algorithmic trading because, in addition to having a transaction history, the process is fully automated. It’s the ideal way to make our money work, not work for money. I use several, which diversifies my trading account. If I had to follow as many trading signal providers as I have trading algorithms, management would be impossible.
Tell me in the comments what you prefer between trading signals and algorithmic trading? And why this preference?
Joseph Pergnan
