AsstModerator
FPA Forums and Reviews Admin
- Messages
- 5,745
It's not an email. It's not a question. It's a general commentary that showed up as a review.
I don't know why people do this. I've seen reviews left for a broker saying "all brokers are bad". I've seen reviews left for an EA saying "all EAs are bad".
If people have a general opinion of a whole class of products, that's something for forum discussions, not reviews.
In this case, I saved the text so I could put it here in the forums. This guy claims that no signals service can ever be profitable in the long run.
I think his argument is interesting. Does anyone agree or disagree with this?
I don't know why people do this. I've seen reviews left for a broker saying "all brokers are bad". I've seen reviews left for an EA saying "all EAs are bad".
If people have a general opinion of a whole class of products, that's something for forum discussions, not reviews.
In this case, I saved the text so I could put it here in the forums. This guy claims that no signals service can ever be profitable in the long run.
PREDICTION:
They might start out profitable like some do.
As soon as they get a reasonable number of subscribers they will begin making a loss.
It happens to them all. In 8 years in this market there isn't one single signal service I know of still around making profit, they all come and go.
Why?
Because the forex market isn't as big, in terms of the number of active participants at any one time, as everyone thinks.
Sure, it turns over $3 trillion a day, though I expect the bulk of this is as a result of international trade activities.
So how many active speculator type participants are there active in the market at any one time?
Speculative forex trading is probably something that perhaps 0.1% of the worlds population would even consider doing in the first place.
Then 95% (more I reckon) of them lose.
Therefore, how long can there be an ever revolving influx of new 95% 'lambs to the slaughter' to sustain the number of active market participants?
Do you really think there can at this very moment be 20,000 people around the world sitting in front of their computer trading forex, with 95% of them losing?
Or even 50,000?
What I reckon happens:
A profitable signal service gets too many subscribers that there are just too many people on the same side of the trade, so the trades start going against them.
Don't you think that data would be available somehow which informs big players of where the stops are at?
I noticed it with (service name deleted). You had 600 people all placing the identical trade simultaneously, and within 20 seconds the price instantly would go 20 pips against.
Every time!
So, if 600 out of perhaps 20,000 participants active in the market at that very moment all place the same identical trade at exactly the same time, don't you think it's possible an alarm bell might sound somewhere?
PREDICTION:
There will never be a forex signal service which is profitable in the long term for this very reason.
I think his argument is interesting. Does anyone agree or disagree with this?