Trading signal services are in theory a way of initiating trades without having to do the analysis and research. In essence you are copying the trade ideas of someone – or a group of people – who you hope knows what they’re doing. If you take the trade signals, initiate them correctly, over time one would hope to achieve a positive outcome.
In short – do as they say and make money.
I must admit over the past few months of my trading education signal services have seemed VERY tempting. Too tempting in fact, as I began following some of the free ones (search for free Forex signals to see what I mean). I had mixed success but didn’t use these services exclusively. That is to say I was also trying different methods and trading strategies at the same time. As a result of this very non-scientific approach I’ve no idea if these services yielded a profit.
That’s one of the main problems when people are learning how to trade the Forex markets – they don’t stick with one strategy for long enough to even know if it works. Until you do, and back-test too, you’ll never know.
So should you consider subscribing to a trade signal service? Well that depends on what kind of trader you want to be. It’s kind of like learning to maintain your car yourself rather than relying on the local garage; if you know how to check your oil (and maybe change it), change spark plugs, top up screen wash etc not only will you save lots of money on servicing costs but you’ll have the knowledge of how to service your own car as well. This knowledge is invaluable. You get to know your car better and recognise if something isn’t quite right. Rather than having to take time off work or get the bus you can change the spark plugs yourself at the weekend. What if your garage couldn’t fit you in or closed? Without the knowledge this would be an inconvenience.
The same applies to trading:
If you know how to do it yourself you are not relying on other people for your financial stability
So in conclusion; if you are incapable or don’t have time to learn how to trade yourself, then yes, signal services may be ideal for you. However if you possibly can it’s well worth learning the skills and art of Forex trading yourself.
Phew. Got to the end of the article without using that tired teach a man to fish metaphor. Oh wait…