DO TRADING SIGNALS WORK?
I GET THIS QESTION A LOT! & Here is my answer
Many people claiming that they are successfully using signals
And yet, none of them will be living off their trading income.
“Success” means that you can live from the money you are making in the markets. You have a 6-figure account, and you can reliably pay for your mortgage, dinners out, holidays, and other bills. You even have enough spare to give to charity.
I haven’t met anyone who has done this via signals.
Why?
Well, the answer is simple.
A signal service doesn’t actually solve all the problems you have with trading. It never will.
Having and using a profitable trading strategy is just one piece of the puzzle. It is one barrier that you need to overcome out of many.
Solve it, and then what?
How does your $1,000, $2,000, or even $20,000 account become a reliable 6-figure income?
Here’s the truth. A bot or signal service could never make you more than 5% per month. If it did, then the drawdowns would be massive.
However, let's say it made you 10% per month - a figure that’s almost impossible.
Your $1,000 account becomes $3,138 after 12 months of consistent trading. Your monthly profit at the end of a year is $313.80. Enough for your heating bill in Spring.
After 2 years, your account will not even reach $10k. It’ll be $8,954.30.
And this has to happen without a drawdown, without you wavering, every month clocking in at astronomical returns.
It’s the best-case scenario in a perfect world.
However, the world is not perfect. The ride to freedom is not (and will never be) this smooth.
Every single trader on this community either knows this or will know it soon enough.
Instead, why don’t you spend the 2 years building your knowledge? The only way to live off your trading income is to study the right things in the right way.
A bot or signal service may seem like a shortcut. Yet, even if they work (which they don’t), the journey is still longer.
Let me give you an example.
Step #1: Learn a profitable trading strategy. This takes 6-12 months if you do it properly. Your aim is to make between 2-3% per month. HINT: The first 3-6 months involve no live trading.
Step #2: Pass a funded challenge and get given a $40,000 account. This takes 4-5 months. SIDENOTE: Genuine and ethical prop firms don’t allow you to use signal services.
Step #3: Double that account every 4.5 months. Every time you make 10% in your account, the funding company doubles the capital. Notice that you only need 2% per month in trading profits to achieve this. After 9 months, you have $160,000 to trade with. In 18 months, you will have $640,000. Your monthly pay is $12,800 per month at this point.
Step #4: Use the profits from the funded account and put it in another account you fully own. You want to have complete control over your future. You don’t want to rely on funded companies forever.
In 2-3 years, you have a monthly income of more than $12,800 per month. It DOUBLES every single 4.5 months.
The reason why we all want a signal service is because we want a shortcut. However, that shortcut leads to an empty account balance.
Share your thoughts on this and lets have a Genuine discussion @SMARTTRADERSHUB
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David Obwao
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DO TRADING SIGNALS WORK?
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