Many people are making a costly error when looking for profitable Forex trade signal. Obviously, the first thing people look for in a Forex signals provider is profitable results. But what they need to look for is profitable and duplicable results. In the following article I want to reveal two characteristics a profitable Forex signals service should have.
I’m sure I don’t have to say this, but you want to join a Forex signals service to make money, right? So, you find a Forex signals service reporting profitable trading, and follow them. But after a while you realise you are not nearly as profitable as you thought you should be. Here are the two biggest reasons for this happening, and how to avoid this problem.
The first thing you need for profitable Forex signals is the ability to copy the trades correctly. If you cannot mirror all the trades the service provides, you are not going to get the same pip numbers. So it goes without saying, you are not going to be making the profits you deserve either. I should mention, with different broker spreads and slightly different price feeds, you are not going to be able to copy every trade exactly. But you need to avoid big differences.
To copy the trades as closely as possible, only use signals services that use a trade copier to place the signals automatically. If you have to place the trades manually based on the signals, missed trades and changes you make to the signals is going to hurt your results. Plus, most people using a Forex signals service are not pro traders and they can still make mistakes if they are tempted to make trading decisions on their own.
The next, and potentially more costly problem, concerns the important issue of money management. You see, the amount of money you make on a trade depends on your account balance and money management strategy you use to determine the proper lot size to use for each trade. The problem is, most Forex signals sevices only provide signal instructions, and not the money management.
You need to get both the Forex signals and the same, professional money management the service uses to get the same profitable results. Not using the same money management could turn profitable Forex signals into an unprofitable or risky trading experience. While you might get the same pip gains, you could not be as profitable because of the money management you use.
Finding profitable Forex trade signal is one thing. But you need to copy every aspect of the signals if you want to be as profitable as the service reports. You need to copy the Forex signals into your account by using trade copying and mirror the same money management to enjoy the same profitable results.