A Typical Trader’s Story – Part 3: Taking the Easy Option

Filed under: Learn Forex Trading |

Even once you understand the importance of setting stop losses and having good money management techniques, you still have to figure out a sound trading methodology and strategy. Although there are many different ways to trade, finding a methodology that fits your personality is harder than you might think (or perhaps not).

 

I think a part of the process of being a new trader is to try to find shortcuts. For example, you might test a couple of your own ideas without much success, and then turn to what might seem like easier options. These namely being forex signals service providers, or trading robots, which do all of the work for you.

 

Forex signals service providers are services provided to members for a hefty month membership fee of perhaps 100 GBP on average. These services give forex trade signals, and tell you exactly what to buy, when, and how much. All you have to do is put the trade on. However unfortunately, there are very few of these services that are actually profitable – and there are a lot out there. Even if you do find a good one, they may not be around forever and then you will end up stuck in the same boat as you were to begin with because you will have learned nothing about trading.

 

Trading robots are even worse than forex signals service providers. You usually buy the code for the robot in one lump sum, and then use it in the MT4 trading platform. The robot then puts your trades on for you when the right setup occurs. Sounds great in theory, but in practice, most of these bots are designed to take small profits and eventually, there will be one almighty loss, which wipes out all of those profits.

 

Not all trading robots or forex signals service providers are bogus, but what I am saying is that you could waste a lot of time and money on finding a good one, and that is time and money that could be spent on your own trading education. I have been through this process and found that the best way really is to learn to trade for yourself. Once you have that skill, it is something you will always have – so isn’t that a better investment in the long term? So don’t take the easy option, because believe me, I’ve been there and got the T-shirt.

 

 

*By the way, what I am trying to do with my “Live Trades” is to establish what will essentially be both a signals service provision, and a forex trading education at the same time. I am not aware of any forex signals service provider that currently explains the logic behind each of its signals – so that is what I am trying to do; give out signals and explain why I took the trades with visual examples. And by following these trades, you should one day be able to find the setups for yourselves and maybe we can start up our own trading community and share our ideas and setups with each other!

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