Profitable Forex Signals
Profitable Forex Signals
There are hundreds of forex signals services out there.
If you take a look at their performance pages you will be shocked:
Every one of them is profitable!
Really? Let's fantasize about how rich we would be if we used their services.
Now, back to reality.
For years, unreliable Trading Signals Services have abused their performance page to attract innocent traders.
The result of this misleading performance information is that
you cannot believe anyone.
Deceptive Forex Signals Performance Methods:
- Show monthly pips earnings:
While this seems reasonable, it can be misleading: information about pips earnings without lot size is meaningless.
Also, some companies use the maximum pips profit that was available and not the real trade exit.
- Signals Success Percentage:
Success Percentage is meaningless.
A Trader can earn money, even if he has less than 30% positive trades, and another trader can be a loser with more than 90% positive trades.
- Selective Information:
A Trade is counted as a Big Winner, which is true. However, they 'forget' to mention that the stop was hit long before.
- Select the best from multiple stops / targets:
Let us examine the following forex signal:
EUR-USD Entry: > 1.3180 Stop: 1.3160 Target 1: 1.3200 Target 2: 1.3240 Target 3: 1.3300
- Signal 1 - 3rd target was hit.
The provider will show you (rightly so) 120 pips profit.
But if you took only the 1st target you earned only 20 pips!
Your natural reaction will be - next signal I'll wait for the 3rd target.
- Signal 2 - 1st target was hit, but the trade change direction and hits the stop.
The forex signals service will show you 20 pips profit (1st target),
but you have lost 20 pips.
- In conclusion -
The Signals Service earned 140 (120+20) pips.
You have nothing in your wallet (20-20 pips).
There are numerous examples how forex signals services can be profitable while the trader lose money.
Traders must be extremely careful with their money and test signals providers with demo accounts for several weeks.
Learn more about our
Forex Signals Rules.
