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5 Lessons Learned Since Starting ForexSignals.com in 2012

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  • 5 Lessons Learned Since Starting ForexSignals.com in 2012

    This email was sent to all members on 17th March 2015. To view a copy of the email in your browser please click here.


    20,000 Registered Members!

    3 years on and we have enough members to fill a regional stadium!

    But what have we learned?

    I'm proud to say that our community continues to grow as a direct result of our shared vision - to make money from the FX market. It's been one hell of a ride with more false starts than I'd like to admit. With each of these mistakes it has brought us closer to the goal of generating consistent stable returns over the long term.

    I'd like to share with you 5 of the most valuable (and sometimes expensive) lessons that I've learned over my 10,000 hour apprenticeship.


    1. A consistent 5% monthly return is the holy grail.
    If you think you're going to be able to generate 10%+ per month over the long term without risking the majority of your account, quite frankly, you're dreaming.

    The only way to make more money is to take more risk. While this might be acceptable for you on a small account, it's no way to make money over the long term. Could you imagine risking your yearly wage in the hope that the market turns in your favour? I've seen this happen a number of times and it almost always ends in tears.

    If you can consistently make 5% per month you're outperforming 99% of the rest of the market (I made that up, but it's probably true). That's why it's important to have a long term view, be ready for a bit of turbulence and do your due diligence.

    2. Never trust a trader at their word (or me for that matter).
    This has been my most expensive lesson. When deciding to follow a trader each of us needs to identify a level at which we're willing to accept a loss. Don't hold endlessly in the "hope" that a trader will pull a rabbit out of the hat and the market will miraculously recover.

    Know when you're willing to pull the pin and use the safety mechanisms built into the copier if necessary. I know it's a hard pill to swallow, but it needs to be done if a trader goes significantly outside their agreed parameters. Throw your computer against the wall, shout at your deaf grandmother and close the positions so you can live to fight another day.

    3. Brokers are generally straight.

    Many retail traders think that brokers manipulate pricing and cheat clients. The opposite is true. Brokers don't need to sabotage clients because the majority of retail traders essentially gamble their money away through bad risk management and becoming emotionally attached to positions.

    I have no doubt that many brokers take the opposite side of our trades (essentially profiting from our losses). While the idea doesn't sit well with me, essentially the only difference is that the broker is benefiting from your losses instead of the other market participants.

    4. Forex is a battle between market participants.
    This follows my previous point. If you think your basic technical analysis using an RSI indicator to identify oversold areas coupled with useless MACD levels is going to make you rich you haven't thought about the big picture. The only way to win at this game is if you're smarter and better informed than the majority of the rest of the market.

    When we win, someone else loses. This fact is often overlooked by retail traders. So the only way to actually make money is to beat those on the other side of the market consistently.

    5. Trading forex is really really really hard.
    Forex is sexy because of the leverage available, it's open 24hrs and has the "potential" to make us rich very quickly without the need to work for it (according to many marketeers). However we need to understand that there is no substitute for passion and hard work. If you're not willing to dedicate your life to trading forex you'll fail. It's that simple.

    I realised this in the early days of the site when I ran my own signal and had clients following me. There was no way I could compete with the likes of FX Viper, TradeAlerter, Kilimanjaro or SmartTrader so I instead decided to support them and create a bridge that would hopefully allow retail clients to share in their success.


    After all this I feel as though we've finally got it right. The due diligence process for new traders is extensive and the goal is for consistency, not huge gains.

    I'm excited to confirm that we have completed due diligence on the newest member of our team - HarborFX. This manual trader features an unbelievable 3 year track record with a maximum drawdown of only 7.29%. Click here for the myfxbook statement.

    I look forward to continuing to support our community across the next 20,000 members well into the future!

    Regards

    Nick - ForexSignals.com
    Would you like free lifetime access to our forex trading room?

    Open an account at Blueberry Markets and save the $97/monthly fee.

    Click here to find out more.

  • #2
    How the **** is forex sexy? What a queer thing to say!

    Comment


    • #3
      Originally posted by brenton View Post
      How the is forex sexy? What a queer thing to say!
      Then call me queer.

      Forex is the second sexiest thing in the world to me.
      Would you like free lifetime access to our forex trading room?

      Open an account at Blueberry Markets and save the $97/monthly fee.

      Click here to find out more.

      Comment


      • #4
        Is the Axi Mamm ready to go Nick on viper

        Comment


        • #5
          Once it is running im thinking of following another one of your traders.Does Smart trader have a managed account.

          Comment


          • #6
            I will support a Smart Trader MAMM. Nick Please consider it. I have been asking for pretty long time too. Its seems to be a popular choice.

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            • #7
              What if when you choose a signal provider and shoot for the "save" 5% but take 3 different signal provider of them? So it's 15% but without risking more each trade.

              Comment


              • #8
                I'd like to think of my self as a long term member of this site, who has shared in the ups and downs.

                I've learned:



                I cannot trade. Leave trading to the traders. It's what they do, it's why we pay them.
                Don't second guess, if something is making you feel uncomfortable and it's within the rules of the system, then I've got my risk set too high. If it's outside of the rules, then I should be using a hard equity cut off.



                Don't watch your account 24/7.
                That's the traders job, stop looking at every trade. I check about once a day, in the evening, just to make sure there hasn't been any issues with the VPS.


                5% a month IS the HOLY GRAIL.
                I used to turn my nose up at 5% a month. Now I realise that it is around the maximum consistent return without taking too much risk.


                Never stop learning.
                Knowledge is power. It's up to you to understand how the market works, and what you need to have in place to allow your account to get the best returns.


                It will go wrong.
                That is a given, it's up to you to stomach it and move on. Never give up. I've been knocked back a few times, it's felt horrible but it has been entirely my own fault. I like to think I've learned what risk/reward is now. I never put more in my forex account than I can afford to lose.


                The point is, it will go wrong, but don't give up, if you want to invest and make much more than in a bank, you can do it if you persevere. ALWAYS understand that everything that happens is YOUR responsibility, no one is to blame (or be commended!) except you.

                I was hit pretty hard at the end of last year. I took a time out since then, only trading with a small account, just to step back and learn what I did wrong. I now will stick with Viper only, not over the recommended risk. I will sleep well at night.

                I just hope he doesn't plan to retire too soon!
                Last edited by ColdHypno; 08-10-2015, 11:14 AM.

                Comment


                • #9
                  Great post ColdHypno! Thanks for sharing your thoughts.

                  Comment


                  • #10
                    "What if when you choose a signal provider and shoot for the "save" 5% but take 3 different signal provider of them? So it's 15% but without risking more each trade. "

                    Anyone has a comment on this?

                    Comment


                    • #11
                      Originally posted by DannyB View Post
                      "What if when you choose a signal provider and shoot for the "save" 5% but take 3 different signal provider of them? So it's 15% but without risking more each trade. "

                      Anyone has a comment on this?
                      It works, but you need to be mindful about margin and correlated drawdown of each signal. You basically need to work out the worst case scenario for each signal and add them together. Then make sure the maximum lot sizing and open trade for each signal doesn't exceed your available margin.
                      Would you like free lifetime access to our forex trading room?

                      Open an account at Blueberry Markets and save the $97/monthly fee.

                      Click here to find out more.

                      Comment


                      • #12
                        Originally posted by DannyB View Post
                        "What if when you choose a signal provider and shoot for the "save" 5% but take 3 different signal provider of them? So it's 15% but without risking more each trade. "

                        Anyone has a comment on this?
                        Continuing from what Nick said...
                        This is the approach I've used most of my time subscribing to signals. I have also blown a couple of accounts even though the providers didn't blow their own account. It's easy to think "ok sure, I need to account for the worst case scenario of each signal but what's the chance of them all hitting their max DD at the same time"

                        Well the answer is very likely. Signals usually (not always but usually) hit max dd due to some external event (e.g. SNB issue. Scottish referendum last year etc). Also, you MUST have the max DD setting turned on in the copier panel. You cannot let one signal who does not respect his max DD rules (not pretty but it happens) to kill your account or even make a massive hole in it. I have my max DD for any signal set at about 10% and as my account grows I will be reducing it.

                        Try to look for signals with very different trading ideas/methods (e.g. scalpers for ranging markets, carry traders for trending markets) which will (possibly) mean your signals are less highly correlated. Avoid traders which have a history of holding onto extended DD periods.

                        And most of all....good luck!

                        Comment


                        • #13
                          This is probably the most useful thread on the forum. I've also seen my ups and down (DayFox) in over a year of being on SimpleTrader. My advice the more you drool over the profits and think of turning up the risk, the more you should come often back and reread everything on here to set you back on course. If running multiple signals I'll agree with pearcey about making sure they a have have different trading methodologies, currencies, or even trading timeframes.

                          Comment


                          • #14
                            Originally posted by KGB View Post
                            This is probably the most useful thread on the forum. I've also seen my ups and down (DayFox) in over a year of being on SimpleTrader. My advice the more you drool over the profits and think of turning up the risk, the more you should come often back and reread everything on here to set you back on course. If running multiple signals I'll agree with pearcey about making sure they a have have different trading methodologies, currencies, or even trading timeframes.
                            I agree except for the trading time frames. If you're going to have several signals the lower the trading time frame the better. You don't want one signals DD eating into your available margin. But it's not just average time frame, look at the signals max trade length. I remember when Viper had a UC position open for a month or more I blew my account cos there was also a sharp move on EU at the same time.

                            My account didn't survive but each signal I was subbed to did. For me if a signal has held trades in DD for more than a few days I will be reluctant to add it to the mix

                            Comment


                            • #15
                              My 5

                              1 Have more than $5,000USD or equal to that of the signal provider.

                              2 Leverage - it's important to have a higer leverage of 1/500 for following more than 3-4 Providers. Anything less than 1/400 you'll need separate accounts for each signal.

                              3 people who buy EA's to turn around and use them as signal pros' are not very trust worthy at all. That would be like me buying fapturbo and using to setup a pro signal.

                              4 signal providers who sell their signals anything over $100/month is over priced. we know there will be DD and times have a negative month. That doesn't set well for many people. but to charge for poor services should reflect a refund or partial refund. This I learned has never happened.

                              5 you really can't trade your own account when you follow 2-3 of signal providers it's hard to calculate or predict what the Pro's will do. Just let them do it and if they mess up month after month then get rid of them.
                              DETACH YOUR MT4 CHARTS Now Available. - Trading as a hobby is realistic.

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