By CountingPips.com
An Added Advantage for Winning Traders
Trading in the forex market is inherently risky, the markets are often volatile and completely unpredictable. There are winners, there are losers. In the overall trading ecosystem, consistently profitable traders are in the minority. If a trader happens to be in this winning group, there has usually been a lot of time and effort invested into learning, developing, testing and honing their trading strategy and system. It has likely taken years of trial and error on demo trading accounts or small money accounts and long losing periods have likely been endured. Ultimately, traders have to overcome many obstacles through a lot of hard work, determination and intestinal fortitude to accumulate the experience and confidence to become a profitable trader.
The rewards for a consistently profitable trader can be the monetary benefits of winning trades, the satisfaction of a doing successful job and the stimulation of overcoming the great challenge of the markets. But winning traders now have an added advantage to further benefit from their trading skills – by earning extra income in the form of selling their forex trading signals.
What are Trading Signals
Trading signals can be defined as the broadcasting, alerting or selling of a trader’s actual forex trades as they happen. These trade signals comprise the specific buy and sell price orders as well as the stop-loss and take-profit exit orders for each trade. When someone sells a forex signal, they are selling their future forex trades to be copied by others. The reason to buy or sell forex signals is easy; the buyer or subscriber of a trading signal looks to benefit from a successful trader’s performance while the signal provider usually sells or benefits in the sharing of their trades.
Due to the advancement of technology in the trading arena, it has become easier and easier to use forex signals either as a buyer or seller of signals through online tools, trading websites, social networks and even directly from trading platforms. When an online forex trader makes a trade, a record of that trade is then sent to a system or server that sends a message of that transaction electronically. Trading signals can be sent to the signal recipient by email, text message, twitter tweet or by many other similar posting systems.
In the past few years, trading signals have become more advanced and automated as trades can be executed directly in the signal buyer’s account in just about real-time. This automatic signal trading is also referred to as copy trading or mirror trading.
3 Benefits to Selling Signals
1. Earn Money Selling Forex Trades
The first advantage of selling signals is the direct monetary benefit the trader receives when subscribers purchase their forex signals. If a trader’s performance is consistent and profitable without being overly risky, they could very well find their signals in high demand. Buyers of signals are looking for consistent performance and will pay a reasonable amount of money for that skill if they think the payoff will exceed the cost.
The buyers of trading signals may be other traders or non-traders that are in the market to employ their extra risk capital in the forex markets. With trading signals, buyers can pick and choose signal providers and do it from their own trading accounts.
2. Don’t Give Up the Secret Sauce
Of course, winning traders have put a lot of time and effort into developing a winning trading strategies or systems. Understandably, a good number of successful traders do not want to give away their secrets. Purchasers of trading signals receive the orders from their signal providers and not the inner workings of their trading systems.
It does not matter if it’s a technical system, a fundamental strategy or if the signal provider uses pivot points, moving averages or the different phases of the moon. The buyers of the trading signal only need to be alerted with whether there is a buy or sell order as well as the stop-loss and take-profit exit orders. Signal sellers don’t need to fret that their system has to be outed or exposed.
3. Use Trading Success as a Steppingstone
Perhaps you have more ambition than being a solitary trader and would like to use your successful trading skills as a steppingstone to another venture. May be you have dreams of trading in a hedge fund, may be you would like to get a job at a top Forex brokerage or may be you would like to become more well known or write a book about trading. Maybe you even want to be a talking head on TV, whatever it is… All these endeavors could be helped by having a successful and provable track record to which you can point to.
People may listen to those who offer their opinions on trading but undoubtedly people are much more likely to listen if they know that person is a consistent winning performer. Right or wrong, proven winners are more likely to be respected, listened to or looked at as more authoritative.
An Easy Way for Traders to Sell Signals
One fast and easy way to start selling forex signals or testing out a forex signal system is to sign up for the MQL5 Community Social Trading Signals. All that is needed is a free MQL5 community account and a trading account (free demo account or real money account) on either of the MetaTrader 4 or the MetaTrader 5 platforms.
There are two reasons why the MQL5 Community can be a good choice:
1. Simplicity of getting started
If you want to sell signals and you use the Metatrader platform already, the process is rather easy and straightforward. Sign Up for a free MQL5 account, provide your personal details and documentation and then verify your information. After your account is approved, you can choose your specific Metatrader trading account to use for a trading signal and how much you want to charge to follow your signals.
If you do decide to be a signal seller and charge a monthly fee, there is an initial security screening system put in place that puts signal providers on a trial basis for a month that is designed to screen and filter out bad systems and individuals. Freely provided signals avoid the trial basis. Payment is received by the signal provider by Paypal (most countries) or Webmoney when they withdraw from their accounts.
See full description, directions and documentation here.
2. The huge inventory of traders on MetaTrader 4 and MetaTrader 5
The second reason the MQL5 community can be a good place to start is that there are literally thousands upon thousands of forex traders who use the MetaTrader 4 and the MetaTrader 5 platforms every day to conduct currency trades. If a trader is serious about earning some extra income from selling signals then having all of these traders as potential customers is a great way to start building a customer base.
Buyers of signals have the ability to enable trading signals right in their Metatrader platforms without any extra steps to be done. With such an easy way to subscribe to signals, it is almost guaranteed that there will be a good number of traders utilizing or browsing this market of signals.
In conclusion, selling Forex trading signals is another way for winning forex traders to benefit from their hard-earned trading skills. The benefits can even go beyond just the monetary rewards. If you are a profitable forex trader, you may want to think about whether selling your forex signals is right for you.
Article written by CountingPips.com
Risk Disclosure: Foreign Currency trading and trading on margin carries a high level of risk and can result in loss of part or all of your investment. Due to the level of risk and market volatility, Foreign Currency trading may not be suitable for all investors and you should not invest money you cannot afford to lose. Before deciding to invest in the foreign currency exchange market you should carefully consider your investment objectives, level of experience, and risk appetite. You should be aware of all the risks associated with foreign currency exchange trading, and seek advice from an independent financial advisor should you have any doubts. All information and opinions on this website are for general informational purposes only and do not constitute investment advice.
Blog Disclosure: CountingPips.com is an independent forex website and all opinions expressed on our blog postings are purely our opinions. This was a sponsored post and the company who sponsored it compensated via a cash payment, gift, or something else of value. We do accept forms of advertising, sponsorships and receive affiliate commission revenue. We do occasionally participate in paid reviews although our posts and opinions are not influenced by compensation and these posts are attributed as such. From time to time, we do recommend specific products or services for which we do receive compensation and in these cases, we do so on the belief that the product or service is worthy of an endorsement and will benefit our readers in their forex trading or in the furthering of their financial analysis. As always, we do our best to only recommend quality products and services but it is recommended to verify the accuracy of all products and services with their provider or manufacturer.
