Too many traders are making a critical mistake when seeking profitable Forex trade signal. You see, when looking for a Forex signals service to follow, the first thing people look for is profitable results. However, what they should be looking for is profitable and duplicable results. In the rest of this 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 obviously want to follow a Forex signals provider already showing positive results. However, a lot of Forex signals followers fail to make the profits they want after using the signals. Here are the two major reasons this happens, and how to avoid this problem.
When you join a Forex signals service you need to make sure you can copy the trade signals exactly. If you cannot mirror all the trades the service provides, you are not going to get the same pip numbers. This means you are not going to see the same profits either. Do keep in mind that due to broker differences in spread and price feed it is impossible to get exactly the same results, but you want to be as close as possible.
The easiest way to copy the trades as closely as possible is to use a signals service that uses some type of trade copier. 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, if novice traders are tempted to make changes to the signals they can make costly mistakes.
The next, and less obvious problem, concerns the important issue of money management. How much money you make following a Forex signals service has a lot to do with your account balance and money management formula. Unfortunately, most Forex signals services only provide signal instructions, but leave the money management up to the subscriber.
You need to get both the Forex signals and the same, professional money management the service uses to get the same profitable results. Using poor money management could end up making otherwise profitable Forex signals a losing trading experience. Even if you get the same pip numbers, your profits can be very different, which is not really what you want.
Finding profitable Forex trade signal is one thing. But being able to duplicate these profitable signals you need to be able to copy every aspect of the signals. This means getting both the signals into your account as accurately as possible and using the same professional money management that makes the signals profitable.