Is It Possible To Make A Living In Forex Signal Copying?
So what an interesting topic this is. Can you make a living by following someone else’s trade signals? Very important, certainly for us, joking aside, it is a valid question. And I think it needs no further analysis. I have seen a lot of people coming into this business trying to give up their day job. Thinking they are going to be a trader. This is their road to riches. It’s a get-rich-quick scheme, okay?, they don’t like their current jobs, and they think they are going to be like you know just switching on the screens and making a living, people are looking quite often for the easy way out, and this approach has really led to a real growth industry in the forex signal service business
Basically, what a forex signal service is, it is exactly what it says on the tin. You know you pay a subscription. A monthly or annual subscription or whatever payment, plan you have with the provider. And that provider will send you a signal to your email, to your Smartphone or what have you. And that will be a buy or sell with stop loss levels; take profit target levels might even have some risk, management in there as well. So what a signal service will do? Send you the signal you as a trader will take the signal and off you go. You try and make money. You have read on the tin that this strategy makes twenty percent in the course of the year, so you think that is great
Well, I thought sure, I don’t think it’s really as easy as that. And I think you need to put some more, analysis into the civil service, and we will talk about that a bit more in a moment, but there are certain advantages, am I following a signal service and the first advantage is: learning to trade itself is not an easy task. Is not something that you can do overnight. Not something you can pick up a book, read the book and then you become a trader, it takes time, so for your signal service having faith in someone else to make those decisions for you can be a huge advantage. Now, let’s assume that strategy you are using or that the provider is using has been that test. It has got a good track record
Presumably, they have done their backtesting. That testing is an incredibly boring task. It has to be done; you need to know how strategy performs. So if you want to follow a signal service, you have got to assume that this provider has done all that backtesting for you. He has taken all that hard work out for you. So there you have a strategy. Honest backtesting. It’s a got great return on investment, off you go with it. Well, quite frankly, here is where I think the double-edged sword is. It’s not quite as simple as that when you follow a signal service basically; you are shifting the responsibility onto someone else. And it’s very easy when you shift the responsibility onto someone else to blame someone else when that strategy goes wrong. Then you start losing, and that’s a lot of the reasons why people do it. They don’t want to take some responsibility