While few my be doing so out of the goodness of their hearts…My theory is that many have strategies that only work when for example, markets are trending or maybe they need capital to grow their accounts. What do you think?..
Sometimes, thier strategies work better when more and more other traders use them.
For example, professional traders use momentum breakout strategies. He descibes his strategy to the communitiy, and then, when all his students see the setup where they know he would buy - they are buying also, helping to the price to go up.
I think you are greatly overestimating the purchasing power of retail forex traders.
All of the retail forex traders in the world represent only about 3½% of the forex market, based on the dollar-volume of their trades.
Even if the “successful trader” in the OP’s question managed to persuade 1% of all the retail traders in the world to follow his system – an impossibly large goal, in itself – his followers would be influencing a mere 35 one-thousandths of one percent of the market.
As far as our retail trading goes, the forex market will not feel the tiny effect of our trading – even if all of us band together and trade the same pair in the same direction at the same time.
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Super correct! We are minuscule in comparison and our purchasing power can’t influence anything really as far as currency is concerned.
not so at all
his students aren’t trading real currencies in a real market - they’re just betting against counterparties
and in any case, as Clint mentions above, their volumes would be inconsequentially small
Don’t trust anyone on the internet who asks you for money.
Occasionally, a new poster will appear on a forum and suggest we should all buy shares in a tiny company which was set up last year in which is in e.g. mining exploration as he’s heard they have found gold in the Congo and are about to announce it. Do not do it.
But, forums are a great place to gain strategies, and some of them will work for you. Some of them are so simple that they cannot be sold - that does not mean they have no value. You have to ensure that you can understand them, that they don’t depend on signals or data from the author or someone else and that the risk per trade is only a small percentage of your account capital.
Your first few strategies need to be very simple. Demo one at a time until you understand them inside out. At this stage you’re learning 50% how to learn about strategies and 50% how to manage trades.
Use a well known broker in a well regulated jurisdiction.