Can you gain with signal providers ?
You can, but you must closely monitor the activity of your trader.
Surfing the web you can see many comments, some people claim to gain other lost the whole account. The point is that is a big risk put a large percentage of your savings in that kind of investment. Many times happend that you see very nice performances for 3/4 months and later a very big drawdown. This is due not only for the risk of the strategy but also because many times the trader makes operations just to gain commissions so in this way you are in the risk of lose a lot of money.
I personaliy invest is a conservative account that don't require my day-attention. If you put 100k$ in an account you can't stay worried all the time to check any day if the trader "drinked to much" and make understandable trades that make you lost thousands of dollars. You do not have to worry about executions of brokers and so on. The spirit and the goal of this website is primarly to understand THE CONCEPT: Be an investor is a totally a different game than being a gambler and in the long run you will be the winner making more protits with low risk and peace of mind.
This is the core, having a real passive extra income.
This is the way to invest a big amount of portfolio without the anxiety to check every day the account with the fear of lose a large quantity of money.
In general signal providers don't give me this peace of mind because there are a lot of factors in the equation… some trades for some reasons are not copied, the broker made a big slippage in the execution of the trade and I can continue….. so you need to "work" is not a really passive income in my opinion.
I advise you to put a small amount of your portfolio in this kind of funds and always check a long time performance with a low drawdown.
This is just an excerpt that I found on the web to give you an idea about these kind of investments… I don't say that you will not gain but you can just figure out some problems that you can have:
Most Traders there are trading with DEMO Accounts,
My advise is, if you want to follow, make sure you use and manage the margin call o meter correctly, it's very effective.
Because their Signal providers are paid only on positive trades, they tend to close them early, ignoring more potential profits. Besides, most traders, especially those who are not trading real money, freak out when their trades go in the opposite direction, either they leave it open till a very negative position, or they close all at once.
ultimately it is still yourself, I've been with them for sometime now, their top Singal providers don't usually remain top for very long. They may come up once, breathe some air, and then fade away. Ask yourself, why don't you see many profitable accounts over a long period of time, just do a search. ? We've lost money using their Signal providers.
Follow at your own risk. As for those who are consistently making money from it, please review again after a few more months, see if you still say the same thing.
Bottom line –
1. Most traders are commission hunters,
2. High Drawdown, irresponsible traders HOPE that their trade would recover, using Martingale strategy.
3. Traders or Signal providers trade without factoring in swap or interest in accounts.
1. If you're lucky, you can earn some money.
2. Refer to point one above.
3. The 2 points mentioned above.
I DO NOT recommend using them, Use at your OWN RISK.
I just reported one comment because resume well the problem you have with a lot of signal providers:
1 – Most traders are not professionals, so you see they rank at number 1-10 with good performances and later they burn the account or incur in a big drawdown.
2- They are commissions hunters, so when they reach popularity they open a lot of trades just to gain commissions and put your account in a big risk.
3- Even when you choose a good strategy you need to take care of the execution of the trade, latency of the servers and other technical issues.
You can make your research and will see many similar comments.