How reliable are Forex signals?
Forex signals can be very reliable from the right Forex signal service but there are some unscrupulous services out there that are less reliable. To get good reliable Forex signals, you need to do your research to find a good Forex signal service.
Reliability of professional traders
If we look at real professional traders then a typical win rate would be around 50 to 60 percent. This may sound quite low when there are places claiming 90% win rate but anyone claiming a win rate as high as that is most likely going to be a scammer. The reality of professional trading is that there are losing trades and there can be quite a lot of them. I have known great traders who have had losing months and even quarters. The two important things that the professionals do compare to the normal trader is that they have a proven strategy that they are confident using in and they are competent money managers.
The strategy a professional may use is one that works extremely well in trending markets and allows them to make huge profits but in ranging conditions, this same strategy may well make losses. It is all very well saying “don’t use that strategy in ranging conditions”. But in reality, is it very difficult to tell when a range has started or finished. It is in this cross over a period that many professional traders end up making losses. The important thing is that the strategy the pro trader is using will easily make up for the losses when the market starts trending again. The pro trader will also spend a lot of effort in adjusting their Lot size so that losses are minimized. Professional traders usually only risk around 0.5-2% of their account per trade. So even with many losses their account does not fall very much.
Finding a reliable Forex signal provider
In order to find a reliable professional trader, you will need to do your research. There are plenty of websites that have reviewed Forex signal services and have information on them such as Investing.com or Daily Forex
Quora also has some answers about recommended Forex providers. Some of the ones mentioned are 1000pip Builder, ZTP Forex School, and 0 To Hero Signals
When you are looking at a Forex signal service, make sure that they have verified performance history. This is one way that a trader can prove that they know what they are doing. Don’t worry if you see a few losing months here or there, that is the reality of trading. It is a long term game, not a get rich quick scheme.
Always email a signal service before joining and make sure that you are talking to the actual trader and not some customer service rep who doesn’t know anything. Ask them about the strategy they use and what they do for risk management. If these seem like a good professional service then try them out for a month and see whom they operate. I’m sure if you do your research and try a few Forex signal services then you will find one that works for you.