Wednesday, January 9, 2008

Currency Trading Signals - The Easy Way to Forex Profits

There are many vendors who sell currency trading signals and traders can then use them to make forex profits without having to study the market and of course you can get software to do the same. Let's look at the best ways to get superior forex timing with these signals.

The first point to keep in mind is - there are a lot of people who will try and sell you currency trading signals and their not traders, their simply marketing organizations and have no trading experience.

To avoid these people and to find out if a forex signal trading service or forex trading system can generate trades that are likely to make you money, look for the disclaimer below - if a vendor uses it or similar one, don't buy the system.

Here it is read it carefully:

"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

The one above is a standard CFTC one and it effectively allows anyone to make up a track record in hindsight - knowing the closing prices.

Anyone can do that, even a child - but forex trading is not so simple, we have to trade going forward.

Look for real time track records and get verification.

Even if you are lucky enough to find a forex signal trading service that has a real time track record - you must understand the logic it is based on, otherwise you won't be able to follow the signals with discipline.

If you don't have confidence in the logic and the discipline to follow the signals through losing periods (and you will have them) you don't have a system!

The traders who buy currency trading signal services, are normally traders who are greedy and looking for a fast buck - or traders who are simply naïve. They end up disappointed and lose their money, because there is no easy money to be made in forex markets.

Of course, you wouldn't expect there to be, with the profits to be made.

THE BEST WAY...

To enjoy currency trading success is to generate your own currency trading signals, by learning forex trading and building your own system which you can be confident in and you can apply with discipline.

While this may sound daunting - its not and you can do it in a couple of weeks, if you work smart and get the right forex education.

Currency trading success is based upon understanding confidence and discipline and the best and most profitable path is to generate your currency trading signals.

If you have the desire to succeed and a willingness to learn you can do it.

1 comment:

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