Best Forex Trading Systems

February 23, 2008 | posted in | 0 comments

If you want to find a forex trading system that works then you need to look at one key fact to determine if it will give you forex trading profits - so here it is...

Fact: Well over 95% of the forex trading systems sold on the net have never been traded and carry the disclaimer below, 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 vast majority of forex trading systems on the net carry this disclaimer and it really is of no use in telling you if the system will make money.

Let's face reality - anyone can make profits simulating in hindsight knowing the closing prices but we don't have that luxury when we trade! You also have to think that if a vendor doesn't have the confidence to trade it himself why should you?

Today anyone can sell a forex trading system easily online and make money not from the system itself - but by using clever advertising copy to appeal to greedy and naïve investors and vendors know and do this.

If you want to make money from a forex trading system try and find one with a real track record, that's been traded and ask the vendor some questions about his forex trading strategy - if it's a marketing company only you won't get a reply!

Forex trading is not as easy as buying a mechanical trading system from a vendor following the signals and piling up big profits - life is simply not like that.

If you find a forex trading system with a track record make sure your comfortable with the drawdown and look at the worst peak to valley drawdown ( if you joined at the worst possible time ) and be prepared for that loss.

While you can follow a forex trading system to make money by far the best way to make profits is to build your own. While this may sound daunting its not and you can put together a simple robust method for currency trading success in a few weeks.

A further advantage of developing your own trading system is you will know how it works have confidence in it and that will give you the discipline to trade it through losing periods.

0 Responses So far

Post a Comment