Things To Look For When Choosing A Forex Signal Provider
There are some red flags that should be easy to spot that will help you to protect your forex account. Many of the traders available as third party signal providers look good for a few weeks, or even months, but are really just ticking time bombs. Don't be around when the timer stops.
This article is intended to highlight a few things to look for and avoid. It is in no way intended to cover every problem that traders may or may not have. Now, what to look for:
Stopless Trading
Even the best trader cannot control all facets of a trade, so the ones without stops must not be on your active list. Power outages and connection disconnects are always possible, no matter how smooth everything else looks. Since you are dealing with immediacy here, news can take the market on a swift and lengthy journey. The last trader you want working with you is the one without stops. This is the first trader to avoid.
Huge Losses/Small Wins
Sometimes it is a good tactic to pull profits off the table at a time that seems extraordinarily early. This tactic works well for a trade loser. It cuts your losses allowing your winnings to bolt, thus resulting in more wins than losses. A mighty good thing. But beware of the trader who takes 10 profit gains and has 200 losses on his accounting sheet. This is not the trader for you.
New Guys on the Block
Just because a trader is a newbie doesn't necessarily raise the red flag. You should avoid them as a live one anyway, though, for a lack of track record. You might try running them as a demo for a while and check their results, but if this is a good trader, they will hang around for at least 6 months or so. At that time, there is a traceable history to analyze to determine if this trader is worth the plunge.
Large Gains Following a Draw Down
If you come across a trader who shows extraordinary wins at the end of an extraordinary draw down, you are witnessing a trader who has probably thrown in the towel and is hurling a hail Mary pass. To the novice forex person, this appears to be a go-to trader. For every dozen traders who go this route, possibly two boomerang themselves into recovery. Those two are the ones wafting about aimlessly awaiting the proper sucker. When they meet their next draw down, the trader will try the miracle pass again, which will undoubtedly bomb. You don't want a trader that puts his faith in miracle plays. You want one trading on solid ground.
There are obviously many more tell tale signs that a trader should be avoided and this article is only intended to get you started. - 23212
This article is intended to highlight a few things to look for and avoid. It is in no way intended to cover every problem that traders may or may not have. Now, what to look for:
Stopless Trading
Even the best trader cannot control all facets of a trade, so the ones without stops must not be on your active list. Power outages and connection disconnects are always possible, no matter how smooth everything else looks. Since you are dealing with immediacy here, news can take the market on a swift and lengthy journey. The last trader you want working with you is the one without stops. This is the first trader to avoid.
Huge Losses/Small Wins
Sometimes it is a good tactic to pull profits off the table at a time that seems extraordinarily early. This tactic works well for a trade loser. It cuts your losses allowing your winnings to bolt, thus resulting in more wins than losses. A mighty good thing. But beware of the trader who takes 10 profit gains and has 200 losses on his accounting sheet. This is not the trader for you.
New Guys on the Block
Just because a trader is a newbie doesn't necessarily raise the red flag. You should avoid them as a live one anyway, though, for a lack of track record. You might try running them as a demo for a while and check their results, but if this is a good trader, they will hang around for at least 6 months or so. At that time, there is a traceable history to analyze to determine if this trader is worth the plunge.
Large Gains Following a Draw Down
If you come across a trader who shows extraordinary wins at the end of an extraordinary draw down, you are witnessing a trader who has probably thrown in the towel and is hurling a hail Mary pass. To the novice forex person, this appears to be a go-to trader. For every dozen traders who go this route, possibly two boomerang themselves into recovery. Those two are the ones wafting about aimlessly awaiting the proper sucker. When they meet their next draw down, the trader will try the miracle pass again, which will undoubtedly bomb. You don't want a trader that puts his faith in miracle plays. You want one trading on solid ground.
There are obviously many more tell tale signs that a trader should be avoided and this article is only intended to get you started. - 23212
posted by X - Men @ 1:32 AM
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