If you are a new trader, trading with forex signals provided by a pro trader can be a good idea. Using forex signals means that you don’t have to sit in front of your computer looking for the trading signals. The pro trader will be sending you the trading signals. This will save you a lot of time and headache as an experienced professional trader will be looking for the high probability trade setups and sending you the signals via email or sms. And if you are an experienced trader, using forex signals can help diversify your portfolio of strategy.
Why Most New Traders Lose With Forex Signals?
Let’s start with this fact why most new traders can’t make money with forex signals. The most common problem is that new traders tend to enter the signals incorrectly. When you will enter high quality forex signals incorrectly, the result is obvious! So, where do most of the new traders go wrong? Most new traders don’t take into consideration the account size when they enter these signals. Risk/Reward ratio for a forex signal might look very good. But, you have to translate that Risk/Reward in accordance with your account size.The best way is to use a position size calculator that will tell you the required position size in accordance with your account size and Risk/Reward. Always remember trading is all about good risk and money management. So, before entering signals on your account, always calculate the correct position size in accordance with the risk level that makes you comfortable. My advice to you is to never risk more than 2% of your account size on one trade.
The second common reason for failure is that these forex signals are valid for a certain period of time. If you enter them late, the market might have moved and these signals might no longer be valid. Whatever, you can test forex signals on your demo account. This way you don’t lose any of your hard earned money.
How To Test Forex Signals?
Suppose, you test forex signals from a reputable pro trader on your demo account and they don’t work for you meaning you keep on making losing trades. Don’t worry, you are trading on your demo account and not losing any money. First see that the signals are easy to interpret. Now, take a deep look at where you are going wrong. Take into account the above two factors that make most new traders fail with fx signals. Consider it part of your training. Figure out where you are going wrong. If the pro trader is making trades with something like 80-90% accuracy then the problem is on your side not in the signals. Analyzing where you are going wrong and correcting your mistakes will teach you a lot and I am sure within a few weeks, you will start witnessing good results with those signals.
When calculating the right position size in accordance with your risk profile that I have suggested to be not more than 2%, the time required for the calculation should be minimal. The position size calculator should be on hand. You can use a position size calculator online. Most signal providers will provide you with this service but if they don’t, don’t worry these calculators are freely available online. Practice the calculations and memorize the steps needed. Make sure, you do this in less than 30 second. With practice, you will be able to do it in less than 30 seconds. It’s not a big deal.
Once, you get good results with those signals on your demo account, open a micro account with $250. 1 pip on a micro account is equal to 10 cents. So, losing 100 pips in a trade means losing only $10. Although, losing 100 pips in one trade can be a rare event but trading on a micro account will give you the feel of live trading with low risk.
Trade with those signals on your micro account for one month. At the end of the month, calculate your performance. Another thing that you need to keep in mind is that you don’t need to take all the signals and in the end start losing because of over trading. Just choose a time of the day that suits you and you have around 60 minutes free and look for a signal service that can provide you signals during that time. This way, you will make your life comfortable and avoid getting up in the middle of the night to enter a signal in your account.
Once, you start feeling comfortable with the forex signals and you have successfully traded on your micro account, switch to a mini account. On a mini account, 1 pip is equal to $1. Trading on a mini account will give you more realistic training on how to manage risk and leverage. If you can learn how to manage risk and leverage, you can make a fortune with forex signals.
Trade on the mini account for 1 month. If possible, two months and make sure that now you can trade comfortably with the forex signals. Once, you are comfortable trading with the signals on the mini account, switch to the standard account. Always remember never increase your risk level per trade above 2%. This is the most safe risk profile for even most pro traders. I am sure, you will make money with the forex signals on your standard account if you follow the above steps.
Forex Signals And Trade Copier
Now, on to the trade copier software. Many pro traders are also providing a trade copier software along with their signals. Again, you will have to adjust the trade copier software according to your risk profile. The good thing is if you use the trade copier software, you don’t need to manually enter the signals onto your account. This is the autopilot execution of these forex signals on your account even if you are not near your computer. But of course, you need to test and set the system before you should think of using it live.
Once again, thoroughly test the trade copier software onto your demo account. Then onto your micro account and after that onto your mini account before you trade live with it on your standard account.
How To Make $30K with Forex Signals?
Now, if you follow this strategy, you can make $30K per month with forex signals and the trade copier software on autopilot every month. Make a list of the three best forex signals providers in the market that also provide a trade copier software along with their signals. Test each of them one by one thoroughly first manually then with a trade copier software. Once, you are satisfied and the trade copier software is copying the signals onto your account seamlessly in accordance with your risk profile, you can trade live with that service.
One pro trader on average makes around 1000-1200 pips per month. On a standard account this means $10K to $12K per month. Trading three standard lots with three different forex signals ensures hedging of your risk. Instead of depending on only one pro trader, you are using three pro traders. This will lower your risk by 1/3.
First trade with one signal provider. Once, you start making pips consistently, choose the second signal provider, open a new account, transfer some money from the first account and start trading with the second signal provider and after that with the third. Ofcourse, test each forex signal provider thoroughly before trading live. If you follow the above strategy, after six months, you will be making something like $30K per month and if you increase the number of signal providers, you can make even more. You can try Vladimir Ribakov’s Forex Signals and Forex Hercules Elite Signals/Trade Replication Service RISK FREE for 30 days on your demo account. Good Luck!