Trading signals

[Shlomo]

I am curious, what are your opinions/experiences about paying trading signals? For example using a website where one can copy signals for 30 USD and use it with my trading platform?

 

[khinkali]

If you mean genuine predictions then I think it's helpful to think of it from the other perspective. If you had a trading signal that gives a good return, would you sell it for $30? That would be like selling next week's lottery results; you'd be better to trade yourself or come to a good commercial deal with someone.

There are pump groups (which might be illegal depending on your location and the markets you trade), but these seem to be a bit like pyramid schemes. The people at the top buy low and then sell high after the people below have pushed the price up for them. Those at the bottom unfortunately buy near the top and sell near the bottom as the price reverts.

There's also the multiple selection scam. Someone tips "up" to 50% of their subscribers and "down" to the other 50%. After each trade, repeat. Those subscribers who were lucky a few times in a row are motivated to pay good money to continue getting the worthless tips.

 

[Shlomo]

Of course with the example you give it would make no sense to sell the signals, but these people have many subscribers, so if they get a good reputation then they can get a pretty huge passive income stream.

At the same time however, they all seem to use algorithms, and then it makes me wonder how valuable those signals really are? Are they even worth the small fee?

 

[khinkali]

If you can find a profitable trading signal for a small fee then you are very lucky.

Maybe someone would sell a good signal cheaply because they feel charitable. Or perhaps they want people to try it for a while and then pay a lot of money to keep using it.

 

[Silvio]

Even if they can show good past performance, most of them are using risky strategies that make many small wins so they can pretend to be "stable", until one big loss wipes it all.
Maybe check ZuluTrade.com, they have some traders that are not bad.. note that eventually they will all lose money so it's more about knowing when to take your winnings and leave the table.

 

[Loisir]

basedon my experience in Forex , First on all EU this is pretty illegal as i require significant compliance controls etc...

2 they all sucks ( those who provide signals) even if you see it as a passive income, it is like sport betting tips.

they will give you 2-3 luck tips than you will blow your account based on poor financial management, advice etc... if you depend from another guy , you will never know why a stock, currency go up or down ..

Avoid this

 

[Skianto]

Let's say it depends on how much you invest in trading.
There are trading signals from people who have a good reputation and earn a lot from the number of their subscribers, so they would have a lot to lose if they didn't do a good job.
One that I use personally costs me € 250 for three months only signals, but the return is clearly higher.
If you use 0.1 btc or higher per trade and do 2/3 trades per week, then it's worth it.
There are obviously times when it runs badly, but overall, at least for me, you have good earnings.