Most people have come across the concepts of the premium signal at some point in their career. In a simple context, it is a paid signal that tells when and how to invest. The professionals are in charge of delivering the signals through dedicated Forex websites to the customers. Though this concept is relatively new, more traders are following expert opinions. There are many myths surrounding this idea and this article will explore these myths. Embrace yourself as we start busting many popular beliefs of the trading community.
Premium signals are not the answer to unlimited profit
It is natural to think we will end up making tons of money if we simply follow the given instructions. The professionals are giving suggestions, who are we to disagree? Many beginners look desperate after losing the initial investment. When they heard about this idea, the first thing that strikes you is to change the position size in trades and earn a huge amount of money. However, things are not as simple as we think. A good percentage of chance prevails and these forecast can be wrong. There is news that is affecting volatility.
All these make up the trend, a trader may not be able to understand the market even with years of experience and acquired knowledge. Imagine this situation a person has changed the position size to increase the reward massively in this system. His confidence was fuelled by the last trade which resulted in profits. The news was released and it changed the volatility. That person will be left with an empty account. This illustrates, the following signals may help us to make a profit for a short time, and it does not help in the long run. Sooner or later, there will be errors which will take all the profits. The only way to make consistent profit is to practice, acquire knowledge and learning from mistakes.
Learn manual art of trading
All the professional traders in the United Kingdom follow the manual art of trading. They never follow signal service provider or EAs. Use the demo account and try to learn from the experienced traders in the exchange traded funds industry. Stop following the herd and try to develop your trading skills using a demo account. Enroll yourself onto a professional trading course or access Saxo Academy to master the art of trading. Never follow other people’s signals in the trading business.
Signal providers can have their own plans
Every trader has a different mindset. An expert can patiently wait when the trend is going against because he knows, it is a part of his plan. If this person is providing the premium signals, the clients would be worried and may prematurely exit the market, not knowing it was all in the plan. Even if we copy and paste their trades, it is still not possible to win. Self-knowledge is the only way to become successful. A dishonest professional may intentionally provide wrong signals only to make the followers lose up investment to increase his own chance of profit as every single dollar lost is a profit to others. He knows people will believe it was an honest mistake and will again reinvest the money, only to lose it afterward. In a financial transaction, it is best not to trust anybody.
It is a way to eternal profit
So we have got these angels who will do the math for us and we will simply write the answers. In reality, it does not happen so often. Every now and then, professionals make mistakes. When the signals prove wrong, it causes a catastrophe in the community. Never think of spending the rest of your life pasting and copying the strategy in the trading platform. What if they stop providing signals without warning? What if an investor leaves the website and goes for solo trading? So many questions arise that remain a mystery.