When scouring the internet and viewing forex or crypto influencers you may have noticed that some of them offer 'signal services' or 'paid groups' where you take their signal and buy or sell depending on what they say. We will cover whether or not these types of signals are scams and what to look out for before purchasing or subscribing to these signal services or groups.
How Do Signal Services Work?
Essentially a person or company will offer their signal services in return for a monthly fee or an annual fee for the whole year. Normally signal services depending on the quality will usually charge around $100usd per month with other services offering discounts for yearly or quarterly subscriptions.
The person or company will then tell you to purchase or sell an instrument based on their analysis of the graphs, and it’s up to you to decide whether or not to pull the trigger and execute the same trade based on the signal they give you.
What to Look Out For
In order to ensure your capital is safe and isn’t wasted on garbage signals that can make you lose money it is best to research the paid group or ‘guru’ that is offering these services.
These are the things you should find out in your research:
- How long they have been running the service for
- How consistently profitable they have been month-to-month
- Testimonials of previous or current clients
- How reputable the guru or paid group are
- If the paid group/guru share their results
If you have done your research and determined that the paid group is reliable and has a profitable vast track record then its potentially a decent signal service, however there are things you as a disciplined trader should do to ensure your capital will remain safe.
How to Trade Safe with Signals
When purchasing a signal service it is paramount in ensuring your risk management is on point, with this being done you are allowing your capital to be safe whilst also trading safely in-case any losing streaks occur.
It is also a great idea when trading with signals services to also do your own analysis of the instrument aswell, this will also give you further confirmation to pull the trigger on the trade as it looks good to you and is being provided as a signal giving you further confidence in taking the trade.
Are Signal Services Worth it?
If you want to become a serious and disciplined trader and take trading from a hobby to an actual job learning the ins and outs of trading will help you understand why price moves from zone to zone and where to predict prices next movement. Just following signal services everyday will not necessarily help you in this aspect as you’re not analysing or practicing any trading whatsoever, however signal services purchased in-conjunction with your own analysis and hypothesis as to where price may go can be a powerful tool.
If you’re a beginner trader I would advise to practice and learn the markets before jumping into any signal service provider, however if you feel like you’re ready to purchase signals do ensure your risk management is on point aswell as your analysis.