What’s up Painless Traders! I apologize for the lack of updates for this signal group. I blame it on my conscientious effort to learn more about the forex market and be a profitable trader based on my own charts and analysis.
Quality of signals from Learn2Trade VIP group ever since my last update has still been good, but there’s a drop in winning rate. I had signed up for a few free signal Telegram groups too. In fact, many signal groups have had many of their trades called hit SL (stop loss) especially in August. This prompts me to write this update and share some of the important lessons I have learnt.
- Risk management is the most important aspect of Forex Trading. It doesn’t matter if you have 5 days or 50 years of trading experience, without good risk management, you cannot be profitable.
- Winning rate means nothing. I was too obsessed with winning rate percentages previously that I overlooked the importance of being profitable at the end of the day. With my outlook changed, I was able to take many more trades and learn from them, whether they end up good or bad. I can have a 50% win rate and still be profitable if my risk management and risk to reward ratio are in check.
- Never take signals blindly. Sure, signals are supposed to be an easy way out for traders (especially new ones) to trade. After all, it’s just copy and paste right? No. Due to the market being so volatile and different trading personality, just copying signals blindly will not lead to desirable results. I am still currently still finding my most comfortable and profitable trading strategy and style but when I first started, I was not comfortable with swing trading (over days and weeks). There were signals I took which went into the negative pretty deep and I decided to bail out on them because I thought it was just going to go much worse…only for it to reverse and swing soon after. This is also why risk management is so important. Learn2Trade offers many swing trade signals and if you have poor risk management and play with big lot sizes, your account will not be able to take even the slightest of pullbacks. If you have mastered the art of sniping without any pullbacks or draw down, I must say very well done!
- Don’t trade anything under the sun, focus on a couple of pairs. Currently I am looking at just 3 pairs to begin with. Analyze these pairs carefully and do not be distracted by other pairs.
- Do not have FOMO (fear of missing out) or FOLO (fear of losing out). The market is always there 24/5. Missing out on some trades today is not the end of the world. Yes, you might have gotten that extra 200 pips, or you might have lost 100 pips. Only trade after doing your proper analysis, even after getting signals.
- If you want to take signals, take from one, or at most two good performing signal groups. At one point of time I was in 6 different telegram groups and there were mixed and opposing signals sent and I ended up trading over 11 currency pairs, without learning or profiting much. On a side note, opposing signals could both be correct. A trade can be a short term sell, and a long term buy. Again, do your own analysis. You can catch pips both on the sell and on the buy. Is this your trading style? Is your risk management in order? Some people only trade in the true trend direction and do not catch pips on the pullback. Some people have more time to monitor the markets and are able to catch pips down and up.
Hope this update helps you, especially the new traders. I am looking to discontinue all signal groups after I am able to trade based on my own analysis profitably. Learn2Trade has helped me a lot with their analysis and signals. We shall see how things work out. Cheers.
Update (24 November 2020): I have completely stopped taking signals from any groups for quite some time. Apologies for not updating this post. I would still recommend Learn2Trade services though as I see that they have been making good progress as a company with weekly profits and also analysis.