For many newcomers who have just entered the investment market, finding a trading trick that does not require a lot of research and can enjoy stable returns is the most dreamy thing. As a novice who has just entered the market, you may linger in some communication groups or major forums just to find profitable operation suggestions or trading signals, which is a normal phenomenon driven by interests. Generally, newcomers may face insufficient trading skills or lack of time, so they will rely on or even depend on these operation suggestions or trading signals.

Therefore, this article will focus on whether these trading signals and buying and selling suggestions are credible.

Some analysts, traders or experts always mention the operation direction and entry and exit positions of specific markets and trading products in their commentary articles, allowing investors to pay attention to their operation ideas on various financial websites.

Figure 1: Example of a trade suggestion

Since we are in an era of information explosion, such trading signals are everywhere, which also leads to uneven quality of foreign exchange trading signals. In other words, it is very difficult to find stable and profitable signals, which is almost impossible to find. If traders are lucky enough to find them, it is indeed possible to achieve wealth growth, but if not, they are likely to fall into a vicious cycle of continuous losses.

Therefore, before putting any foreign exchange trading signal into actual trading, you should first test it with a simulated position. If you can achieve profits in the past three to six months, it means that the signal is "fairly credible". Remember! It is only fairly credible. Because then you must also compare factors such as risk-reward ratio, winning rate, etc.

Generally speaking, there are three sources of foreign exchange trading signals/buy and sell operation suggestions:

Individual traders will publish their trading plans on forums or other places where information can be made public. The trading signals they provide are usually free. However, due to the large number of traders participating in the market, there are many different opinions on the same trading product. For those who are just starting to get involved in the market, how to identify the accuracy of the signal is a big problem. Similarly, it is even more difficult to find free trading signals that are profitable and stable.

Generally speaking, all major brokers provide agent services, and some traders with trading skills become agents and start recruiting clients, usually by offering free trading signals. Similarly, the quality of these trading signals varies. Another disadvantage is that most platform agents can earn commissions from their clients' transactions. Therefore, some agents hope to promote client transactions in order to maximize their commission income, and will also focus more on recruiting new clients to further increase their clients' trading volume, while ignoring the quality of analysis.

Scammers are something you should avoid at any time, in any place, or in any situation. After many traders experience setbacks, they are too eager to make quick profits, and they easily fall into scams. Scammers often promote common so-called technical analysis courses, or some unique trading methods, or automated smart trading, and boast about their profit records, which makes people easily convinced. Their scams are usually not free, and they even charge a lot of money. Or they are free, and ask you to invest money to follow the so-called trader to trade, and guarantee a certain rate of return, etc. In the end, they are all scams.

After reading the above three sources, everyone probably has a general idea. Of course, not all of them are scams, but whether it is free or paid trading signals/buy and sell operation suggestions, it is really rare to find suitable and easy to make profits. Good and continuous signals are simply hard to come by.

However, these signals are not completely useless. Investors can try to use these signals as models to try to establish their own foreign exchange trading signals. It may be easy to lose money at the beginning, but you will learn from experience and lessons faster, and your winning rate will gradually increase over time. The resulting profits will also make you more confident. Maybe one day, your trading signals can also inspire many novices!