Nowadays, most people have realized what is happening to their savings, and for the most part, nothing! So, people have looked for alternatives, ways that they can manage this and get a hold of the unfair games the banks play with our money.
Now for every good solution, there is always another problem that follows, in this case, there is now a huge group of individuals who have seen the opportunity to jump on people who have very little knowledge of the markets. These individuals know what to say and how to lure the attention, take for example all the “traders” on YouTube and Instagram, with Lamborghini’s and flashy private jets on the way to some hotel in the Caribbean, telling you, you can live like them, all you have to do is subscribe to their brand new, market makers inside secret signal service!
Now, of course, they are also aware that most people can’t afford some prices so they have evolved to setting up silver packages and then gold packages and last but not least the PREMIUM package, where you get all the signals, updates and newsletters, etc…
Now you have to think, if these people are so successful at trading, then why are they required to go through so much effort to set up signal services, with various packages, and if they are doing all this work when are they doing the trading?
Good question, that’s when you start to notice the companies stickers that allow you to rent out the Lamborghini that was posted to that photo or YouTube video, the houses they are sat in, are listed on Airbnb, the private jets are hired out and the photos with them have been modified to have their logo on the side of the plane.
We can go on, but we think you get the picture, the point is this, there is an industry that allows you to manage your money, there are brokers that are good and also that are bad, then there are signal services, some are offered free for training, and to help you get an idea of what to look for and what levels are interesting to test your skills, then you have the paid ones. These paid signal services today are what we will look at and how the conflict of interest is not good for you.
So, first off, we have the main conflict of interest, the person providing the signals, stands to make a lot of money for doing so, in this case, what these people usually do to get the main attention is to run a lot of buy and sell trades on a particular asset, they then close out the losing trades and take a screenshot with the winning trades from demo accounts, they use these pictures to show traders who are starting out, the amount of money they made off of one trade, but one issue with those trades is they are way too big for any ordinary account and with an account that size no one would put 10 to 20 million in a retail brokerage account as well as the fact that there is such a thing as rented servers for MT4. So, they start to lack credibility there, another issue is they usually don’t have a stop loss, so that’s another issue because all traders use stop losses to contain and manage their trades.
A broken clock is right twice a day, think about this statement, now imagine a market is trending, and these people are pushing out paid signals, where they draw out a couple of support and resistance levels and then send them over to you with nice colours and sell the signal. Well in many assets classes is can be easy to turn around and say this is where the market is going, and yes sometimes they can be wrong and they will have a way to get around that as an excuses blaming the market or the economic data released that day as to why it didn’t work but for the most part, those signals are usually poorly conducted and you will find if you consistently ask them for one pair let’s say, GBPUSD, and that is all you wanted to trade, it wouldn’t take very long for you to see them start getting it wrong consistently, as consistently if they can produce good signals it shouldn’t matter which pair, because right away if they understand the market they should be able to also determine when to buy and sell but also when not to trade as they should be able to determine the market conditions and if they are favourable right now, but of course, they can’t do this as largely these signals are provided by people who largely know less than you do, but the ones who have seen them losing a few too many times, realise what is happening and they will walk away, that’s where trading signals Asia is different, largely focusing on a few assets and usually a handful of currencies that even if you don’t trade them you can get an understanding of the strength or weakness in one of the currencies, but consistency is key here.
But in the long run, this won’t matter to the trading signal provider who charges for their signals, you see because while you have noticed that the trader can’t produce consistently good results and their track record they showed you doesn’t match the current results they are showing you so you make the sound decision to cancel the subscription, another 5 traders have just started their journey into the financial markets and they start looking at places where they can start finding an edge and then they come across the same guy you walked away from, and this is sometimes the life cycle of traders and what they learn in the beginning, is that if you want to get a handle on this you cannot rely on someone else to come up with the ideas you cannot take shortcuts you must create and establish your own style and strategy to manage your money that’s how people who make money win.
Now, of course, there is nothing wrong with using signals at the start but usually, the signals without a conflict of interest are free, and yes there are free signal providers out there, people who want to just basically share their idea of what is going on in the markets, it’s with these people that you can take advantage of the free signals to get a grasp on how to look at the market and determine certain levels of interest while you try and do it yourself, because you will start to notice things that will be significant to you along the way and this is all part of your education, this was the point of setting up Trading Signals Asia.
So, when you receive a trading signal that is free, as you do when you check them on Trading Signals Asia, you can outline the level and see if they trade there and also start to see was there any back up to the idea, why was the person looking at that particular level, then you will identify your own technical and fundamental analysis because that’s all that there is.
The most efficient way to use Trading signals Asia, in your learning process is to first outline a trade idea, so look at the aspects of what is happening around you and the world, then use your technical analysis to study the price action, then after all that you come up with your own trade and where you think the market will likely go. At this point now you can go look at what the trading signal is and this is an interactive way to see if you were right or the trade signal was correct, and sometimes you might share a very similar idea with the trade signal before you even look at it but you will only know you’re doing that when you do the study for yourself first and then try and tackle this, so the next time try doing it this way and then see how the results play out.
So, why exactly do trading signals that are paid for, are scams, well given all that has been said up till now, we mentioned the conflict of interest because of the sums of money that are so easy to be made from traders who are starting out and believe the sale of the idea that these people have some secret formula to the markets, which they don’t, but the starting traders, of course, believe t because the markets are very overwhelming at the start, so they start promoting the idea that they know more about the markets, you as the new trader start to feel secure that you can have the same level of “wealth” they do, but they only have what you pay them, and when it comes to renting out Lamborghini’s, just know that all companies have to pay money for their marketing campaigns.
The reason they don’t work is simple, these people are not trading the markets, they do not understand the markets and the biggest issue is they are people who have probably tried to trade the markets and are so obsessed by trying to get the lifestyle they thought they could have in one month of trading because the idea was sold to them by someone else, so they begin to realize how easy it would be to set up their own business plan for selling trading signals, and then that’s it, they start selling themselves as people who know what they are doing you that’s when you started your trading career and stumbled upon them.
So, do not be fooled or lured into this trap, you can easily get traders opinions on the markets, they want to express this, many traders have ego’s and they want to fulfil it by telling the world they are right. So all you would need to do is just find a place where traders discuss the markets, most won’t know what they are doing but every now and again you will come across someone who doesn’t mind teaching something they know and this will help you and if the advice is free and the signal they offer is free then you lose nothing and you stand a chance to learn something over time that can be helpful to you and your journey in understanding the markets and you as a trader.
Focus on your risk management, your money management, don’t chase a lot of different pairs and asset classes get to know one or two at the start very well and then you can start to build your understanding of them, and with that, you will find as the trader where you prefer to trade and how and you won’t be distracted by the opinions of someone who is just trying to get you to pay for him to pretend he is smarter than you think, and then use that money to draw in more people, because it isn’t through trading.