It’s not hard to get excited about the potential profits you can make in with foreign-exchange investing. Quickly becoming one of the most popular investment vehicles on the planet, people worldwide have made mountains of money in Forex. We are talking life-changing amounts of money, here.
Newbies generally aren’t sure of what they are doing, what they need to research, or the kinds of risk mitigation strategies they need to protect themselves while maximizing their potential upside. That’s a big part of what makes Forex signals so popular, after all. But are forex signals actually legitimate? Can forex signals make you rich?
Forex signals are unlikely to make you rich. There are no shortcuts in learning to trade the financial markets and copying another traders entries will not make you rich. This is coupled with the issue that the large majority of forex signal providers are unprofitable scammers, looking to make a quick buck from newbie traders.
Can Forex Signals Make You Rich?
Everyone on the planet even halfway considering investing looks for shortcuts, secrets, and “inside information” that will give them an advantage and allow them to make the kind of money they are looking for.
Forex signals are marketed as exactly that kind of shortcut, helping Forex traders – newbies and veterans alike – understand how the Forex market is about to unfold before it does, giving them an advantage over other traders that don’t have the signals themselves.
Forex signals promise the kind of convenience you’re just not going to get out of doing the heavy lifting of research all on your own.
They promise real time updates that let you know exactly when the market is going to breakout one way or another, giving you just enough heads up advance notice to get your positions in to profit without exposing you to a lot of risk.
Can Forex signals make you rich, though?
Sure – if they are legitimate, the real deal, and you know how to interpret them based off of your own research and information. However, the majority of forex signals are not the real deal at all and won’t make you rich.
Are Forex Signals a Scam?
Forex signals are not a scam, even if there are plenty of Forex signals paddlers out there that are less than ethical individuals or organizations with signals that aren’t all that useful and flat out scams themselves.
Forex signals (legitimate signals) are based on tried and true fundamentals of how different currency pairs behave based off of market research, real-time data, and current market trends.
Those are the kinds of signals you can trust – signals that are put out by reputable operations, reputable brokers, reputable signal traders.
On the flip side of things, though, there are a lot of less than legitimate operators in the Forex signals space that promise their signals (almost always proprietary signals, at that) are an even bigger cheat code in the Forex world.
These are the kinds of operators you need to be on the lookout for!
Anything that sounds too good to be true generally is, and needs to be avoided at all costs.
Anything that promises skyhigh profits with zero risk (or almost no risk) is promoting something detached from the realities of Forex investing and investing in general.
Any signals from unregulated platforms, brokers without any background information, or “signal sellers” that have horrible reputations in the Forex world already should be discounted and ignored immediately.
The Risk of Buying Forex Signals
The risk of buying Forex signals (from legitimate providers and less than legitimate operators) is the same as buying any “special information” from investors and traders across all different markets:
You never know whether or not the research is legit because you didn’t do it on your own!
This is why it is so critical to research, vet, and conduct due diligence when you are thinking about buying signals in the first place.
It’s important to know the kind of signal seller you are doing business with. It’s important to know whether or not the signals they offer are based in reality or some Forex fantasy. And it’s important to know if these kinds of signals have actually help people make money in the past, too.
Can Forex signals make you rich?
For sure – but there’s a catch.
You need to do a fair amount of research on your own to verify the signals are the real deal or you’ll end up throwing money into bad deals expecting windfall payouts. With the level of research you’d need to do, you might as well just learn to trade forex yourself or find trading ideas on sites like Forex Live.
That’s a fast track to find yourself in a nightmare scenario with Forex investing.
Learning to Trade Forex Instead of Buying Signals
While Forex signals are often marketed to newbies and those just getting their bearings in the Forex world, most recommend that kinds of traders instead focus on learning the ins and outs of investing in Forex rather than taking a shortcut like this.
Learn the fundamentals of market research, particularly when it comes to technical and market analysis. It takes on average a year to learn to trade forex, so it’s certainly worth doing!
Define your Forex investment goals in the short and long-term and come up with specific strategies (and tactics) you can use to build towards those goals on a consistent basis. Track and chart your progress so that you know what kinds of adjustments need to be made.
Be sure that you fully research the broker and trading platform that you are thinking about using.This is going to be your base of operations for all of your Forex investing. It needs to be feature-rich, needs to offer real-time information, and it needs to support you in the kinds of Forex trades you’re looking for – or you need to find something else.
After all of those basics are covered it’s time to start thinking about defining your entry and exit points, understanding when you want to jump into trades and when you need to pull your parachute.
Calculate your expectancy so that you can start to understand how reliable and consistent your own “Forex system” is. You can use a website like MyFxBook to track your trading metrics and understand your profitability.
Backtest all of your moves, charting winners and losers and trying to understand not only why you made the trades you made but what you should have recognized in hindsight to make sure that each of those investments was an even better winner.
Take care of these fundamentals and you’ll be building your Forex foundation on rock solid ground. For newbie traders, I’d advise taking a look at these forex trading blogs and specifically focusing on Babypips trading academy to learn the ropes!
In Conclusion – Can You Get Rich With Forex Signals?
In summary, you will most likely not get rich from forex signals or signal providers on their own. You need to take your time and build your Forex foundation in a methodical and reliable way that is going to allow for long-term success with staying power.
Signal providers can give you great ideas about when is the right time to invest, where is the best place to invest, and what kind of strategies are working.
But if you don’t have the time to put in the research, you are better off using this time to build your own strategy and improve your knowledge about Forex so that you do not fall into the traps of bad signal providers. And who knows? You might even find a few “gold nuggets” on your own.
Do you buy forex signals? Let me know in the comments down below.