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I would agree that if the signals were losing money, then the author/vendor of those signals would be silly, or unlikely to trade them. But this is essentially irrelevant: you as the purchaser of said newsletter/signal, would also become aware, quite quickly, that you were in point of fact, losing money, and end the subscription.

This brings us to an important point. How is the newsletter sold? If you have to pay an entire year upfront, with no pro rata cancellation refund, yes, I agree, you potentially have a problem, and also possibly defrauded.

However if you can subscribe on a weekly basis, and have various other options with regard to subscription periods, then your 'risk' is small, essentially the cost of a brokerage fee, and if you are unhappy, viz. losing money, you simply never purchase another issue.

If however you make money, then, presumably, you would be happy to purchase another weeks newsletter?

There is a difference between 'paper-trading' and 'live-trading' absolutely. However the newsletter writer does not fall into the 'trading' model on either count, or rather, he need not. The author is producing a signal, or recommendations: it is really irrelevant as to whether he trades the signal or not. The only consideration is - is the signal accurate?

Therefore his skill as a trader is not what is being sold: it is the validity of his analysis and it's contribution to your realizing a profit, and thus receiving value from his product.

You can always stop by my blog, pick a newsletter, and ask questions about it. I'm pretty much always around during US market hours, possibly that may answer some of your questions and garner me a 'sale'!

jog on

duc