May 22 2023

Is $100 Enough for Trading Forex?
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By Stefano Treviso , Updated on: May 22 2023.
Forex signals are not worth it due to the fact that if anyone did develop a successful Forex Signal generator they should be using it instead of trying to monetise it by charging to provide signals.
In the financial trading business, there are a lot of sharks always coming up with new ways to make money and remember, for them, making money is not about actually trading but rather how to get money from the people that want to trade. Our industry is plagued by:
Within an industry of this kind, the most expected outcomes are:
To justify everything we said above, let's try to really understand the Forex Signals business.
Lets imagine that a Forex Signal Seller develops a successful trading strategy and an automatic way of transforming it into actionable signals. Now he's weighing the decision of either selling them as a service against using them himself.
Selling Forex Signals as a service | Using his own signals |
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After reading the above table, tell me, who in their right mind would say that they'd rather open an online shop and provide customer support instead of just trading their "successful signals" and making millions while enjoying life and talking to as few people as possible?
No one would choose that!
But the thing is, no one is actually providing successful signals to start with as if they did, their signals would be more profitable being used by them rather than being sold as a subscription service.
The real truth is that if you want to be successful at trading, you need to learn how to trade, how to build your own strategy and you need to keep quiet when you find a successful one, want to know why?
The nature of the markets doesn't allow for many participants to execute a strategy successfully.
In any market, there are buyers, sellers and order books full of limit orders providing liquidity. Every time a trade is executed, it changes the current market situation. For example: if there were only 10 Apple shares available at $2 and you bought them, the price will move to the next available price which could be anything (eg: $2.1).
This means that even in highly liquid markets like Forex, a mass strategy won't work as if enough people execute it at the same time, they will move the market thus rendering the strategy useless.
Forex Signals are not worth it for 2 reasons:
Remember, don't let anyone fool you. Logic will always provide the answers no matter which fancy explanations anyone wants to give you. Learn to develop your own strategies and make sure that your money's fate is in your hands.
May 22 2023
Learn to trade forex, stocks and crypto with our premium trading guides. Compare brokers, review them and do so much more!
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