Forex Signals Deadly Sin 2: Spending Too Much Time Trading
One of the main benefits of using a Forex signals service is the low time commitment involved. In theory, if you don’t have to analyze the charts or keep up with market fundamentals, signals users can save a lot of time. This makes profiting in the Forex market by using signals an excellent opportunity for at-home traders without a lot of time to trade.
But unfortunately, in practice, this is not what is happening a lot of times. A lot of times the Forex signals user is spending an enormous amount of time performing trading activities or watching their charts. In this lesson, I want to go over the Forex Signals Deadly Sin of spending too much time trading Forex signals.
There are a few types of instances where spending too much time trading Forex signals might occur.
Using The Wrong Type Of
Forex Signals Service
In a previous lesson I have already gone over the Deadly Sin of using a Forex signals service with no set trading time, so I’m not going to go over this in detail. (You can see that lesson here: http://forexinvestinglive.com/forex-signals-success-course/forex-signals-deadly-sin-1/)
Basically, if you use a signals service that sends out signals, or trade management instructions, any time day or night, you need to be available 24 hours a day. So the part-time activity of trading Forex using signals becomes something that dominates your life. And at some point, life WILL get in the way and you will not be able to trade the signals properly.
In this case, using a signals service with a 24 hour trading window leads to too much time being dedicated to trading. And the solution is simple. Stick to signals services that have a set trading time, like services that trade at the end of day, or use a set and forget style of trading.
Unnecessarily Watching Your Forex Signals On The Charts
OK, so let’s say you avoid the Deadly Sin of using a signals service without a set trading time and choose one that only trades once a day. That’s a great start. Your trading activities should be able to be completed in less than 10 minutes a day.
At the trading time, you check to see if you need to place any trades, or manage any open trades. You follow the instructions which takes only a few minutes. Now you are done until the next trading day.
But it might surprise you to learn that a lot of signals users don’t stop there. When they have open trades, they are constantly opening their charts to see what is going on. They just cannot let the trades be.
They want to answer these questions:
- Is price going against the trade?
- Am I in profit yet?
- Is the market moving?
- How much money am I making or losing?
The truth is, Forex signals users should not be looking at the charts at all after the trading time. If all trading activities are to be performed at a specific time, like placing new trades or managing open trades, that is the ONLY time they should look at the charts. Since there is nothing to do… what is the point of checking in on the trades?
Unfortunately, every time a signal follower checks the charts they will be tempted to take action. They will be tempted to close the trade early, either because they are in profit or suffering a loss. And let’s face facts, few people can resist the temptation to DO SOMETHING when they are looking at the charts.
The point is, if you are using a signals service because you want an already successful trader to make the trading decisions for you… why would you spend more time than necessary looking at the charts and risk being tempted to make trading decisions on your own?
The Benefits Of Spending Little Time Trading Forex Signals
There are various benefits of keeping trading as a part-time activity. Let’s go over a few of them.
The Benefit Of Keeping Trading In The Background Of Your Life: The biggest benefit of using a Forex signals service that requires little time is the fact that it takes little time. For most at-home traders, trading Forex is a part-time activity. And keeping your trading short ensures Forex trading remains part-time.
One of the secrets of Forex trading success, at least for me, is the ability to keep trading in the background of your life. Most people get into trading in the first place because they want to improve their lives and secure their financial futures. So, it doesn’t make sense that trading should become a time consuming, high stress, life dominating venture.
The Benefit Of Perceived Value: Not many people talk about the perceived value of trading. But think of it this way. Of the two following scenarios, which one has a higher perceived value?
Scenario 1: You spend 24 hours a day worrying about your trading. That time is either spent placing or managing trades, or watching the charts to see how the trades are doing. Every minute is stress filled because real money is on the line and there is the potential for loss or gain. At the end of all this, you manage to reach your income goal.
Scenario 2: You spend 10 minutes a day placing and managing trades. You keep trading in the background of your life by only looking at the charts during those 10 minutes. This works out to about 40 hours a YEAR spent on trading. At the end of this small investment of time, you manage to reach your income goal.
For me, the choice is simple. Spending a little time as possible trading means the time I spend trading is a lot more VALUABLE.
I recently did a Case Study for both Forex End Of Day Signals and Set And Forget Forex Signals and broke down the potential earnings into an Hourly Wage. Here is how it turned out using the performance statistics for 2015:
Potential Forex End Of Day Signals Hourly Wage:
- If you traded $1 per pip in 2015, you would have made $7,514,
that is $187.85 an HOUR!
- If you traded $5 per pip in 2015, you would have made $37,570,
that is $939.25 an HOUR!
- If you traded $10 per pip in 2015, you would have made $75,140,
that is $1,878.50 an HOUR!
Potential Set And Forget Forex Signals Hourly Wage:
- If you traded $1 per pip in 2015, you would have made $8,920,
that is $223.00 an HOUR!
- If you traded $5 per pip in 2015, you would have made $44,600,
that is $1,115.00 an HOUR!
- If you traded $10 per pip in 2015, you would have made $89,200,
that is $2,230.00 an HOUR!
Now I don’t know about you, but these numbers are quite impressive. When you spend little time a possible trading Forex signals, not only do you get to enjoy your time away from the charts, but you make the time you do spend trading VERY valuable.
To sum everything up… don’t commit the Deadly Sin of spending too much time trading Forex signals.
If you have 10 minutes a trading day to place and manage trades, you can trade our signals!