Via an article on ForexLive, I came across Sam Eder and his website FxRenew, where he sells Forex signals (which come with free trading education). There are so many wrong things on that site – all hat and no cattle as the saying goes – that I felt I have to write an article to address at least some of them.
Signals are a Superior Form of Trading
This is grade A, 100% pure BS. Just think about it for a second. You’re not able to develop a trading strategy so you have to rely on ‘experienced veterans’ to tell you when to enter or exit a trade. All of a sudden, you’re now such an expert risk manager that through position sizing you’re able to attain a trading performance far superior to that of actual traders. Say what ?!
Benefit From a Track Record of 70% Accuracy in Forecasting the Direction of Financial Markets
First off, this track-record is not shown. Secondly, the ‘accuracy’ metric is totally irrelevant. It’s very easy to lose money even if you have high accuracy : for one, making a forecast isn’t the same with actually putting a trade on. Secondly, the market doesn’t go in straight lines – you can be right on the direction but easily get stopped out by the zigs and zags of the market.
We’re informed that the traders behind the signals (including an anonymous one that goes by the 888 handle) all have 20+ years of experience with banks. Yet, they don’t even have one year’s worth of verified track-record (no one is asking them to disclose their private accounts, but how about the track-record of the signals offered for sale ?). I’m not at all impressed with decades of experience with banks (if that’s even true, good luck in checking out an anonymous guy).
To give you an example, imagine that there’s this patient who needs brain surgery. There are a lot of people who have 20+ years of hospital experience (from janitors, to managers, to chest surgeons) but our patient needs a particular person with specific skills (brain surgeon), otherwise he’s dead. What good is a guy with 20+ years of banking experience who worked in sales or any other field unrelated to actual trading ? He’s going to kill your account just as sure as a hospital front desk manager would kill a patient if she were to attempt brain surgery.
7-Day Free Trial
That’s just bait to attract people unfamiliar with what trading really is. People who mistake buying a trading service for subscribing to an online magazine. There’s no way to properly analyze a strategy after just 7 days and the owners of the site know that very well.
To sum up: FXRenew is a nicely designed site, full of big words and unsubstantiated claims, all geared towards persuading inexperienced customers into buying Forex trading signals. I hope that after reading this, you know better than to let appearances make decisions for you.