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This week’s question comes from ‘many different people’, who ask:
Do you offer trade signals so I know when to buy and sell?
I receive more than 1,000 emails and messages per day (yes, 1,000 each day!).
It usually works out to between 30,000 and 40,000 per month and it’s on the rise. That’s nearly one email or message every minute of every day.
So if I take a couple of days to get back to you or if I just can’t respond, you’ll understand why.
Want to know the number one question I receive from all those traders?
Do you offer signals?
That’s what everyone wants to know. And why not, right?
You sit back and relax while I send alerts of when to buy and sell. You make thousands of dollars, and all you have to do is click a few buttons.
Perfect! Or is it?
In this post I’m going to share the answers to the questions above. I’ll let you in on why I started this site years ago and how I feel about the idea of providing trade signals. This may seem like a trivial subject, but I assure you it isn’t.
Read on to learn how I feel about trade signals and what it means for you.
You have to learn how to trade. Simple as that.
If you don’t want to be a trader, that’s okay too. But in that case, you’re probably better off investing your money in an index fund or two than relying on someone to tell you when to buy or sell the EURUSD.
That my honest opinion. Take it from someone who has been trading since 2002 and involved in the Forex market since 2007.
It’s okay if you disagree with me. But before you do, let me ask you something…
Have you ever known someone to become wealthy from trading nothing but Forex signals?
If it were that easy, everyone would sign up and make millions of dollars effortlessly, right?
However, I do know of many traders who have experienced significant losses by following signal services.
I’ve also known those who trade for themselves to lose a significant amount of capital.
That said, there’s a big difference between these two types of losses, which brings us to my next point.
Unless you have a hand in developing the style of trading a signal provider uses, there will be conflict.
You may not realize it, but your personality is the single largest determining factor when choosing a trading style.
Those who swing trade don’t do so because it’s profitable. They do it because it compliments who they are and what they enjoy.
As I often say, the best Forex strategy is the one that works for you.
I trade and teach price action because it resonates with me, not because it’s universally profitable.
So no matter how a chosen signal provider identifies opportunities, it won’t sit well with you because you didn’t discover it or play an active role in developing it.
You also won’t be able to take full responsibility for the outcome. That’s a big deal in a business where responsibility and discipline are paramount.
Most signal services won’t even disclose how they trade. Their website may give a brief overview of what they do, but it won’t go into every detail.
If you can live with that, that’s fine—it’s ultimately your choice. Personally, I don’t see the appeal.
No matter what you choose, remember that your personality is crucial when determining how you should trade.
I would fail using a profitable day trading system just as a successful day trader would likely fail using price action on the higher time frames.
It isn’t that one style or individual is better than the other. Rather, the trader and style must compliment one another, otherwise it’ll be too easy to throw in the towel at the first sign of adversity.
Let’s assume for a moment that you found a signal provider that has made you wealthy (again, I’ve never heard of such a thing).
You’ve been using these signals for three years with great success. Then one day, you visit their website to find that it no longer exists.
You send them an email and contact them on Facebook, but there’s no response.
They’re just gone.
Apart from the money you made, the last three years just went up in smoke.
Sure, you’ve got money in your pocket, but what if you had spent those three years learning how to trade?
You wouldn’t be staring at a blank webpage in disbelief and unsure of what you should do next.
Have you ever heard the Chinese proverb below?
“Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.”
That’s what we’re talking about here.
Instead of relying on someone else to send you buy and sell signals today, teach yourself how to trade for a lifetime.
That way, you don’t have to rely on anyone but yourself.
If I had to boil it down to one sentence it would be this…
Daily Price Action exists to teach others the price action techniques and strategies I’ve learned over the years.
Yes, I want others to achieve consistent profits, but educating and keeping things simple are my main goals for this site.
I believe in the way I trade and I know others can benefit from it. Heck, thousands of traders have benefited from it.
I also had quite a bit of time on my hands before 2014 when this site was born. As you may be aware, trading from the daily time frame allows for some extracurricular activities.
What better way to spend that time than helping others with a topic I’m passionate about?
If I simply told others when to buy and sell, it would defeat the purpose.
To be honest with you, I could make a ton of money selling signals. Based on the sheer number of requests I get each day, it seems like a no-brainer.
But money isn’t everything. I don’t believe in using signals to trade Forex, so I’m surely not going to offer them. Not now, not ever.
My goal is to work with those who are eager to learn. I want to teach traders who love the markets as much as I do.
Selling signals doesn’t interest me. Receiving a private message from a new member who just had their ‘ah-ha’ moment with price action, that’s what inspires me.
That’s why I started Daily Price Action and it’s what keeps me going.
This post isn’t intended to bash Forex signal services. If you want to pursue that approach, then by all means do it.
However, if you want to be a trader, you have to learn how to trade. There are no two ways about it.
Not only will you be able to take responsibility for your actions, but you will also gain a lifetime of invaluable knowledge.
I can’t stress enough the importance of choosing a trading strategy that fits your personality. This is one of the issues with signal services. No matter who you end up with, there’s no chance their style will compliment your personality.
Why is that?
It’s because you didn’t have a hand in developing those techniques and strategies.
If you want to be a trader and have a passion for the markets, I urge you to continue learning. You can’t fail if you never quit.
On the other hand, if you’re more interested in the money and have little interest in the markets, you may want to look elsewhere.
The Forex market is unforgiving enough to those who come prepared. To those seeking nothing but money, it’s downright lethal.
I’d love for this new weekly Q&A to be successful and provide an invaluable repository of answers to common Forex questions.
To do that, I need your help.
Here’s what you can do to get involved and have your question answered in next week’s post:
Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...
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