Forex, stock, and crypto signals for trading are praised by many beginner traders. They help newbies find profitable deals, increase their portfolio and even learn in the process. However, not all signals should be trusted, as a considerable amount of them is made by people who don’t know what they are doing, or even worse — scammers. Find out what signals you shouldn’t trust in forex trading.
Signals you Don’t Fully Understand
Imagine a situation: a stranger approaches you and offers you a pill, saying it will greatly improve your health. You ask why you should trust him, and he showers you with lots of medical terms in Latin, names of “experts” you know nothing about, and other shady jibberish. I suppose you wouldn’t put your health, or even life, at stake since you don’t know for sure that he is telling the truth. So why would you risk your money blindly trusting some forex signals?
If you are not 100% sure that there is sound logic behind a signal and can’t ask for advice from someone you trust, it is better to avoid it. In another case, you may fall victim to someone’s ignorance or a scam.
Don’t Use Signals that Don’t Fit Your Style
Your forex trade style is largely determined by how much time you are ready to dedicate to trading. Whether you go for short orders closed within a day or are more comfortable with ones that last for a few weeks, your strategy will differ. Besides, all traders have their preferences concerning acceptable risk levels, markets, and financial operations.
If you feel that a signal you are using doesn’t fit your style, better leave it. This signal won’t let you learn the way you want, and you’ll feel uncomfortable all the way. Find a provider with a signal frequency that suits your preferences instead. Some may argue that they don’t want to give up certain signals because they help track important events. Fortunately, a forex calendar app can do this job.
Providers with Bad Track Record
It’s pretty self-explanatory, but some people need to hear this — always check the signal provider reviews. Especially if they charge for their signals. A simple check can save you lots of trouble. You can find reviews on various forums, such as Reddit, or ask their users for help. Skilled traders will be glad to help and may direct you to actual top-class services.
Prioritize Learning over Profits
No professional trader lives on signals. They make their own research, and that is what you should eventually learn to do. Chose signal providers that host educational streams and post tutorial videos besides simply telling you what and when you should buy. This way you can learn and eventually won’t need signals at all.
Here are 5 signs of a bad signal in forex trading. Avoid shady characters and always check for reviews, and always keep learning. If you play smart the meta trader is bound to bring you high profits.