My oh my, market! So exciting and fast-paced. So much risk, yet so much potential. Every new prospector is attracted to the adrenaline rush of risky currency trading. It is that element of risk that makes success very much sweeter.
It also that same element of risk that drives so many new investors to discover the 'ultimate trading system'. You get into Forex and you realize it is not as simple as it looked from the outside. The speed and intricacy of market movements is mind-boggling.
You might have already opened a demonstration account, and practiced making trades. You may went ahead and opened a live account, lost a disturbing amount of money, and are back at sq one -- looking for that 'magic bullet'.
The question to ask yourself is: "Do I really require a better trading system, or do i just require a better grip on Forex? inch
It may surprise you to know that the answer is: "Both. inch
Why?
Quite simply, the better you understand Forex, a lot more likely you are to choose a trading system that fits your needs. Put another way: the less you understand Forex, a lot more likely you are to choose the wrong trading system!
In order to see why, let's discuss the character of Forex trading systems and what they are really designed to do for you.
First, there are roughly two kinds of trading systems: 'signal service' systems and 'complete', strategic systems -- and I almost hesitate to refer to 'signal services' as 'trading systems' at all. Continue reading, and you will see why.
Signal services are convenient tools for experienced spot traders. The primary role of a signal service is to send you 'signals' or 'alerts' about market movements as they arise, according to popular Forex indicators like the Relative Strength Listing and MACD lines.
Typically, these services send 'buy/sell' alerts (and/or general 'movement' alerts) to their subscribers via the subscriber's preferred method of communication: e-mail TXT or text-message alert, etc.
What many of these services do not do, however, is provide with you with a trading strategy or 'auto-trading' option. In order to get that kind of service, you must go with a dealer who gives a 'complete' trading system, and not only one glorified signal service.
How can you tell which brokers offer truly complete trading platforms?
There are a few things to look for when evaluating potential brokers. The first thing to look for is full disclosure of trading strategies.
If a given brokerage house company in fact is in operation to help you succeed, then you should easily be able to find some wording and terminology on their web site about exclusive trading strategies. Many brokers offer 'auto trading' services, where trades are made for your benefit, based on these strategies.
This type of service can be invaluable. However, it may also hinder you if the broker is not willing to disclose the character of the strategies involved. Your best bet is to find a brokerage house that lets you choose when and whether to use the auto-trade feature.
If the broker provides new customers with in-depth training on their strategies, that is even better.
The other thing to look for is 'specialization', but this can be tricky. Some brokers will claim to be Forex specialists, when they are really just 'fly-by-night' scams based on risky trading strategies.
It is often far better to go with a 'name brand' brokerage house that treats Forex as a specialized component within a bigger package. What your account may lack in 'cutting-edge' options is often more than made up for by common sense policies and security precautions. A really good broker will be as risk-averse with your money as you are.
Finally, it is important that you take the time to develop your own trading strategies. Take the time to sit down and weed out your entry and exit tactics.
How much do you wish to risk per trade? How much border are you comfortable with trading on? Do you have recovery strategy in the event your trades take you below border?
How do you mean to manage the overall growth of your collection? Will you take profits out or reinvest them to a target goal?
Answering these questions ahead of time will help you choose the right trading system for your needs.
Karen Kaminski is an information publisher and marketer with a passion for creating unique quality content that people can benefit from. Learn anything you need to understand about Forex at her site preditrendcritique.com
It also that same element of risk that drives so many new investors to discover the 'ultimate trading system'. You get into Forex and you realize it is not as simple as it looked from the outside. The speed and intricacy of market movements is mind-boggling.
You might have already opened a demonstration account, and practiced making trades. You may went ahead and opened a live account, lost a disturbing amount of money, and are back at sq one -- looking for that 'magic bullet'.
The question to ask yourself is: "Do I really require a better trading system, or do i just require a better grip on Forex? inch
It may surprise you to know that the answer is: "Both. inch
Why?
Quite simply, the better you understand Forex, a lot more likely you are to choose a trading system that fits your needs. Put another way: the less you understand Forex, a lot more likely you are to choose the wrong trading system!
In order to see why, let's discuss the character of Forex trading systems and what they are really designed to do for you.
First, there are roughly two kinds of trading systems: 'signal service' systems and 'complete', strategic systems -- and I almost hesitate to refer to 'signal services' as 'trading systems' at all. Continue reading, and you will see why.
Signal services are convenient tools for experienced spot traders. The primary role of a signal service is to send you 'signals' or 'alerts' about market movements as they arise, according to popular Forex indicators like the Relative Strength Listing and MACD lines.
Typically, these services send 'buy/sell' alerts (and/or general 'movement' alerts) to their subscribers via the subscriber's preferred method of communication: e-mail TXT or text-message alert, etc.
What many of these services do not do, however, is provide with you with a trading strategy or 'auto-trading' option. In order to get that kind of service, you must go with a dealer who gives a 'complete' trading system, and not only one glorified signal service.
How can you tell which brokers offer truly complete trading platforms?
There are a few things to look for when evaluating potential brokers. The first thing to look for is full disclosure of trading strategies.
If a given brokerage house company in fact is in operation to help you succeed, then you should easily be able to find some wording and terminology on their web site about exclusive trading strategies. Many brokers offer 'auto trading' services, where trades are made for your benefit, based on these strategies.
This type of service can be invaluable. However, it may also hinder you if the broker is not willing to disclose the character of the strategies involved. Your best bet is to find a brokerage house that lets you choose when and whether to use the auto-trade feature.
If the broker provides new customers with in-depth training on their strategies, that is even better.
The other thing to look for is 'specialization', but this can be tricky. Some brokers will claim to be Forex specialists, when they are really just 'fly-by-night' scams based on risky trading strategies.
It is often far better to go with a 'name brand' brokerage house that treats Forex as a specialized component within a bigger package. What your account may lack in 'cutting-edge' options is often more than made up for by common sense policies and security precautions. A really good broker will be as risk-averse with your money as you are.
Finally, it is important that you take the time to develop your own trading strategies. Take the time to sit down and weed out your entry and exit tactics.
How much do you wish to risk per trade? How much border are you comfortable with trading on? Do you have recovery strategy in the event your trades take you below border?
How do you mean to manage the overall growth of your collection? Will you take profits out or reinvest them to a target goal?
Answering these questions ahead of time will help you choose the right trading system for your needs.
Karen Kaminski is an information publisher and marketer with a passion for creating unique quality content that people can benefit from. Learn anything you need to understand about Forex at her site preditrendcritique.com
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