FOREXSIGNALS.COM has been in operation for five years. So… 5 years have passed, hasn’t it? What an adventure!
Creating this website was arguably the best decision I’ve ever made.
There have been a number of occasions when I’ve wanted to pound my keyboard into oblivion or shower my computer monitor with a stream of bitter saliva. However, looking back on these events, it is dealing with this hardship that has allowed us to continue to progress, providing our clients with actual value while also providing a safe haven from the charlatans of the financial services business. My original objective was to produce money for clients so that the site would be a guaranteed success, which I believe we’ve accomplished after 5 years of hard work!
During that period, what did I discover about myself?
Listed here is a distillation of the knowledge I’ve accumulated over the previous five years. Hopefully, you will be able to pick up a pearl or two to aid you on your quest.
Forex trading is a challenging endeavour. I started trading forex because I wanted to become wealthy without having to put in a lot of effort. Simple. The reality of forex trading is that it is quite difficult, and I will readily admit that I fell for some of the standard marketing hype that we see so frequently in the sector.
I’ve lost count of the number of traders who pretend to be pros, build sexy myfxbooks, touch my ego, and then vanish into thin air without a trace. He will never be heard from again. A lot of exaggerations and crap can be found in this sector (and perhaps in life in general). If someone claims to be making money trading, I’ll bet you a bucket of pips that they’ve actually lost more money than they’ve made in the process.
The ability to make money isn’t impossible, but it is extremely difficult. With the exception of a few tiny accounts, I stopped trading with my personal money a long time ago. It’s emotionally exhausting and completely engrossing, which is good if you’re making money, but I wasn’t. I was just trying to survive. Consequently, I now get my trading fix by allocating my funds to our small team of experienced specialists. Without a doubt, I still enjoy the market and am a little addicted to it, but I find that watching the trades being done on my account rather than making the actual trading decisions works better for me.
When our domain name was LiveForexTrading.info, this was our very first home page.
The foreign exchange market is constantly evolving. When I first started working on the site in 2012, the environment looked quite different. If you remember Zulutrade (remember them?) it was the largest social trading site in the world, and EAs like Million Dollar Pips, Forex Growth Bot, and FapTurbo were a hit, earning traders thousands of dollars each day. Strangely enough, I ran with the developers of a mainstream forex EA (I won’t mention which one) a few years later. And over a few beers, they revealed how they’d sold more than 50,000 copies, netting $3 million in just 12 months of work. Meanwhile, they only made $500 from trading it in the first place. Wow, that’s crazy! Back in the day, EAs were the stuff of internet marketers’ fantasies.
Clients have become more sophisticated in recent years, with EAs and signals rapidly becoming obsolete. To give you an example, Myfxbook and MQL5 have invested millions of dollars in their signal and trade copying tools, and nearly no one uses them. When you consider that their combined database has over 10,000,000 traders, but that they only have a combined total of a few thousand paying clients, you have to wonder why they are still in business.
What is causing the demise of automated trading? Because these traders, the ones who are at the heart of each strategy, are like 21-year-old college students on their way home for spring vacation. Pump it up and dump it out, baby! In the event that someone can get lucky on a modest account for 3-6 months while convincing 50 other suckers to pay $99 each month for as long as their luck continues, it is not a bad offer. That is, assuming you don’t have a conscience, of course. Once a paying customer has been burnt once or twice, he or she will abandon ship, and, like an inflatable boat with a hole on the side, they will be unable to pump in enough new customers to keep the boat afloat for long periods of time.
So, where does it all lead to? The industry is now primarily focused on trader education as its primary focus. People are interested in learning how to trade for themselves, which I understand. I simply wish they were aware of what I was up to… One will very surely fail if he or she is not willing to devote his or her life to this endeavour.
In 2013, the home page was redesigned.
Running an online business is a fantastic experience. It was one of my happiest moments when we promoted my colleague Arturo Ferracuti to the position of manager of our service desk. Arturo hails from El Salvador, which is considered to be one of the poorer countries in South America. When he first started working with us in 2014, he was earning a few hundred dollars per month as a freelancer for another foreign exchange provider. He worked hard and willingly took on new duties, and in a matter of a few short years, he had completely transformed his life and career. He is now earning a respectable salary and is continuing to push himself to new limits.
We presently have 17 employees spread across ten countries. They provide support for our five separate forex websites, which have over 5,000 active clients and are available 24 hours a day, seven days a week. We are a group of people who work from home all around the world. Growing the company to its current scale has been a difficult task, but one that I have thoroughly enjoyed. Furthermore, I have only ever put $5,000 of my own money in the company and have never had to pay for marketing; our development has been purely natural.
In my opinion, the process of starting and expanding an internet business that combines your interests with your customers (in my case, by assisting them in making money) and provides employment chances has been fricking great. If you’re naturally curious, enjoy problem-solving, and aren’t afraid of working through the clock, this is a career path I strongly recommend.
All forex brokers are both honest and dishonest at the same time, and this is true of all of them. Honestly? To be honest, I don’t know. The number of times traders have come to me to tell me that their broker has scammed them is almost comical in its absurdity. Traders do an excellent job of losing money on their own initiative! There is no need for brokers to intervene in this situation. The idea that a broker is sitting on the other side of the trade, adjusting the price a few pips in order to take an extra $7.53 out of your account is completely absurd.
However, what most consumers are unaware of is that most brokers “internalise” their clients’ trades, which means they will accept the risk/exposure internally rather than passing it around to the rest of the market. As a result, if you win, they will lose. Alternatively, it is more likely that you will lose (since you are a retail trader with a lousy plan) and they will gain.
Take a moment to consider this from a business perspective before you get too excited. Consider the following scenario: You are a broker with a new client who deposits $1,000 into a trading account. According to statistics, this client will most certainly lose all or a significant portion of their money during the following few months. Don’t be upset; it’s just part of the natural cycle of life. It is expected that this client will trade between 100 and 300 times over this time period, with the broker collecting a commission of $20-$50 for facilitating the trades and bringing them to the marketplace. Another option is for the broker to hold the trades internally and pocket any client losses, similar to how a casino operates.
If you take the time to study the terms and conditions provided by your broker, you will almost probably find this in the fine print of the agreement. I was surprised to learn that this is neither prohibited nor even frowned upon by regulators; that is simply the way things work in this industry. This information, however, will not be shared publicly due to the fact that they do not adore you in the same way that I do.
What would I do differently if I could go back in time?
I would have a better knowledge of the importance of strategy analysis and how to measure a trader’s profits sooner.
I would only work with traders who have a track record of at least a year under their belt.
Once warning indicators began to appear, I would be more proactive in removing traders from the market.
I would recruit an assistant sooner rather than later (I did the books for the first 4 years and was terrible at it).
Any information a trader provided me would be untrustworthy unless it could be confirmed. I’d rather believe the tale of the used car seller than the trading story of the foreign exchange market.
Over the course of the first several years, I would not have promoted traders as aggressively as I did (marketing multiple failed techniques hurt both mine and the site’s reputation).
In 2014, I would have placed my entire financial resources into SteadyCapture!
Over the course of the past five years, I’ve had a great time administering this site and getting to know so many of you. I’m looking forward to seeing where we’ll be at the conclusion of the next five years. Hopefully, I’ll be writing it from 30,000 feet in the air on my Wifi-enabled private jet, with my 17 foster children in the passenger seat.
I’d be delighted to hear any questions or comments you may have. Please make your comments in the space below.