While I see the benefit of becoming a signal provider, why not become a full-on fund manager instead? I used to think that traders who are profitable need to set up and register an actual business for him/her to become a fund manager. Turns out it isn't the case. Forex brokers actually offer PAMM accounts so clients can easily invest in traders who are profitable. It's really a win-win situation for both the profitable trader (fund manager) and his/her clients.
Akasuki posted: Not really. Signals are not profitable. Signals providers give you a lot of signals everyone. It is not possible to open all the trades they provide. In average they may have good winning percentage. But you will lose.
Agreed, not possible always. what I do to handle this situation is to keep my trading journal maintained and when I have sufficient funds with me I open positions
I never follow signal trading, but I think it unprofitable because although it's signal may profitable you as a follower don't understand the reason why to buy and why to sell, meanwhile, Traders need to understand the reason behind buying and sell orders before they entering the market, signal trading cant giving good lesson for a trader that really want to become trader, except they as investor trader, no matter don't understand the reason, as long as signal provider profitable they can make money from it.
- Make sure is a long term strategy and has good history - Avoid Martingale, Grid, Hedge, Scalping strategies.. these won't make money longer term - Any strategy which targets less than 5 pips won't make any money - spreads differences between master and slave account, latency etc just makes it unfeasible - Huge percentage returns means that they have taken a lot of risk.. these will blow your account - Make sure your sizing is not too large.. work out max DD and ensure your account and trading size can accomodate it - should risk no more than 3-5% of account per trade - Make sure you're using a regulated broker
I haven't used signals, but I'm using the fund management platform. imo the choice of a signal provider requires careful analysis and monitoring for several months (at least), and diversification is also encouraged, the creation of a signals portfolio.
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