The Truth About Trading Signal Services
A trading signal service is a service that will send you an email or two at a certain time of the day telling you to buy or sell at such a price and then all you do is put your order in and collect the profits.
In all honesty I can understand why someone new to trading would consider this. But seriously, lets think about it a little bit.
Here is how a lot of signal providers work. Say they have a database of 5,000 subscribers. They will send a buy signal out to 2500 and a sell signal out to 2500. Half will win, half will lose. The losers put it down to a bad trade, most stick around for a bit, the winners are happy, but at the end of the first few days they have 4,500 subscribers. They do the same, half get a buy signal half get a sell signal, half are happy, a few unhappy and a minority leave. Assume this goes on for a couple of months. By the end, just through random emails half getting buys half getting sells you will have a percentage of people that have only got winning trades and they are over the moon, they are referring the service to their friends and new subscribers are coming in. The people that have had some winning trades some losing trades are hanging on in there and they are still paying their weekly membership or brokerage to the signal provider. You see how this is effectively a con that can string people along for a couple of months. Eventually the majority will realise they aren’t progressing with their trading accounts after the laws of averages work out on whether you get a winning signal or losing signal and leave, but by this time the trading signals provider has had thousands of people spending $20 a week for a few months and they cash out. Almost the perfect crime!
Assuming you found a legitimate service provider (good luck) why would you rather be reliant on someone else feeding you each day? What happens if that company decides to close down or stop sending out signals? That’s your income wiped out on the whim of someone else. The old saying springs to mind of “give a man a fish and he will eat for a day. But TEACH a man to fish and he will eat for the rest of his life”. The same is true in trading. If you can go the extra mile and actually learn the REAL techniques professional traders use from someone that has been there and can show you, you will learn the skills and develop them and always have them there for yourself and feed off the markets for the rest of your life.
The truth is trading is an endeavour that requires knowledge and skill, not luck. Firstly you need to make sure you can commit the effort to learn this properly. Then make sure you are learning from an authentic proven trader and start slowly and build up. Then you trade on your terms and your knowledge and nobody can take that away from you.
The Day Trading Mentor
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