How To Get Your Success in Trading by Third Party Signals or Autotraders

To successfully trade options, it requires the highest consistency and discipline to make money in the long run so whenever you encounter losses in the process, don't be emotional about it and sum up your total performance in a month or so after you have practiced your discipline to obey the trading rules and plans consistently.

Today I would like to share the tips for you to trade successfully by using a trusted third party signal service or auto trader. Here I am just talking about the trusted and legit signal providers and auto-traders only. Be aware of scam signal providers too.

Behind any signal providers, they have their team and also even just a single trader who has developed his own trading system through trials and errors for months. We are sure that they have tested their systems thoroughly and make sure they are independent and not doing their business just to get commissions from the brokers who scam and suck up the money from naive traders before their accounts are zero. We have many legit signal providers who are doing their business for years; however, even with their good signals, success from trading requires our part as the signal followers. So even though you assume they are having the best winning rate, financial markets still can make you a loser if you can't handle it. I saw many auto-traders which were successful at first of testing but in the long term, they turned out to be losers again. So here are some tips when you want to use a third party signals successfully to increase your accounts gradually.

1.  Follow to the t all the advice from the signal provider. No one knows the ins and outs like the signal providers themselves because they own the system and have tested it for a long time so they know all the rules to trade better with their systems. However, some signal providers just don't show the rules. Then you have the strategy to trade by testing it yourself.


2. Choose the best period when the signals provide the highest accuracy. The markets are very volatile in some period but calmer in some period during the day. So you have to know which period should give best winning rate from the signals. Most systems work well in the overlapping of London and US sessions. Asian session may have less activity that causes the market to move in the ranging mode; nonetheless, some systems work well in this ranging mode in binary options. Forex traders will avoid the calm period.


3. Limit the signals you trade. Successful traders avoid over-trading at all cost. Binary options is more likely to make a trader become an over-trader because many systems can give many signals per day. However, over-trading is the number 1 disaster to your account. I have heard about many over-traders. They traded from 100$ to 1000$ in one day and then they didn't stop and still thought that they would still go from 1000$ to more money. They continued and then met some losing trades. Their greed made them take more revenge trades to make up for losses. Their emotion is stronger than their rational thought. They finally killed their accounts back to almost zero until they lost hope, stressed out and even withdrew all the money and stopped all the way. Trading as a career requires you to see it as a long term business, detect your emotion and use your rational thought and rules to push you to stop trading and relax. Personally, for any signals or auto-traders, assuming 5% per trade, I won't take more than 5 trades per day, no matter how accurate the signals are.


4. Avoid important news announcements. News announcement is like Tsunami happening to the calm ocean. We can't predict where the price is going and also important news announcements make the price move in large amount in a short period of time. This can cause your about-to-win trades become losers at a blink of an eye. So no system can guarantee success rate if you trade during the news announcements unless the system is designed for trading during the news events. So before you trade, you should check the financial calendars on ForexFactory first to see whether there will be upcoming important news announcements to happen in your trading period. You shouldn't trade at 30 minutes before and after the news announcements. Be aware that sometimes the news effects take more than 30 minutes for markets to calm down. On ForexFactory, high impact news will be labelled in red while less important news are in yellow or pink. It is alright to trade for yellow and pink news but be careful as well.


5. Cut your losses. We can't expect to win every day even with very trusted signals. Bear in mind that no systems or signals are perfect every day. Don't try to chase the trades or follow more signals to cover up the losses. Accept some losses. Limit your losses to the amount that you can handle emotionally. We are not trading for a day, we trade for years so there is tomorrow. Many signal followers blame the signals when they lose some trades and then try to take more trades to revenge. At some points, they become emotional and even stop following the signals and use their mind to trade randomly. Finally they lost their accounts and blame the signal providers. Markets are the random buyers and sellers around the world so for some days, you can see the markets are moving in very stupid way. When you practice for a while, I am sure that you will know when the signals are best to trade. Then just follow what you have learnt. Successful traders need more relaxation to cut down their risk and preserve their profits and capitals.

So these 5 tips are very valuable for you to follow if you are using a trusted third party signal providers or auto-traders. I am confident to say if you follow my advice, you will be on the right track to become a consistent winning trader. I also know that practicing these tips require tremendous patience. However, patience is the key to success in this business. If you have no patience, trading is not for you.

Want to see my recommended signal providers?  Go here!