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Forex Trade Signals - Why Signals Are A Bad Idea

By : Harold Hsu
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If you conduct an online search for the phrase "forex trade signals", you'll easily find plenty of websites that offer such services. Can one really make money in the Forex market simply by subscribing to a signal service? Allow me to show you what I think about it, and see if you agree with me...

Problem #1 - Black Boxes

One of the biggest issues I have against trading signals is the fact that they do not explain how the signals developed. This basically means that you are blindly paying for someone else's recommendations. How much do you really know about the person who sends you these signals?

I don't know about you, but I personally wouldn't trust anyone I don't personally know with my money, especially when that person hides behind the anonymous blanket of the internet. If there was a perfect idea for an online Forex scam, this would surely be it.

Do you know where the person offering you this service lives? Do you even know what he looks like? Do you have his personal phone number? Is the only way of contact with him via Email or a post box? How is he accountable if he fails to provide profitable signals?

Common sense will take you a long way on the internet, but unfortunately many traders are too blinded by greed to recognize a trap when they see one.

Problem #2 - Dependency

Okay, now for argument sake let's assume that there's a signal service that's completely legitimate, and can provide you with consistent profits month after month. You pay a few hundred dollars each month to subscribe, but it's no big deal because you're able to profit more than three times that amount when using the service.

NOTE: I'm not saying that such a service (i.e. a free lunch) exists. I've personally never come across one, and I doubt they'd be so cheap even if they DID exist.

But let's assume that one exists. What happens when it closes down or becomes available to you? What do you do then? You've just allowed someone to end your trading career in the blink of an eye.

Summary

You see, it's never good to put your fate (and money) into someone else's hands. If you're lazy and don't want to learn how to trade, find a trustworthy friend who can trade for you, or just give up on trading entirely. If there are no free lunches in life, why should Forex trading be any different?

About the author:
To learn more, download my free 26-page guide here: "Forex Trading Traps!"Harold Hsu is the owner of ForexSystemProfits.com where he provides premium Forex trading information and resources.


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