Choosing A Forex Signal Provider - Red Flags
Red flags hover about that you should be able to spot rather easily that can assist you in protecting your forex account. Traders normally come equipped with third party signal providers, some only stay that way for a couple of months, or even worse, weeks. The truth then comes to the forefront that they are really ticking time bombs ready to go off at the least opportune moment.
This article is meant to assist you in uncovering and bringing to the front a few items you need to be aware of and avoid. Do not consider it to be an all-encompassing document of alerts. Look for:
Trading Without Stops
Avoid any and all traders without stops. The trader may look fine but there are uncontrollable factors that are lurking that you cannot avoid. Factors such as power outages or connection failures can effect you because the market runs fast and far on incoming news. You must avoid this type of trader like the plague. It is the first pitfall that a trader learns to steer clear of.
Huge Losses/Small Wins
When a good trader is looking at a loser he may get agitated and pull profits off the trading bench with an unexpected early move. This is good. You certainly want to cut your losses in order to expand your wins, and this ploy should result in more wins than losses. The trader though who has a disproportionate win/loss ratio on his books, i.e. 200 losses, 10 wins, is not the trader for you. Do your research.
New Accounts
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.
Huge Gains After A Draw Down
Abnormally big winners are the sign of a trader who has seen the end of an enormous draw down and is betting it all on one last ditch effort. The account indeed recovers and to the new onlooker's eye, the guy looks like a true winning trader. The reality is for every 10 tries, the trader is lucky if even 2 make it to survival and recovery. These are the 2 that are wafting about in cyberspace searching for you. At their next draw down, they will almost certainly go for the "hail Mary" pass and the end could be ugly. Better not to pray your way into a winning situation, stick to more scientific methods.
That wraps up this article. As stated earlier, this treatise is only a glimpse of the evils that can befall the unwary forex explorer. - 23217
This article is meant to assist you in uncovering and bringing to the front a few items you need to be aware of and avoid. Do not consider it to be an all-encompassing document of alerts. Look for:
Trading Without Stops
Avoid any and all traders without stops. The trader may look fine but there are uncontrollable factors that are lurking that you cannot avoid. Factors such as power outages or connection failures can effect you because the market runs fast and far on incoming news. You must avoid this type of trader like the plague. It is the first pitfall that a trader learns to steer clear of.
Huge Losses/Small Wins
When a good trader is looking at a loser he may get agitated and pull profits off the trading bench with an unexpected early move. This is good. You certainly want to cut your losses in order to expand your wins, and this ploy should result in more wins than losses. The trader though who has a disproportionate win/loss ratio on his books, i.e. 200 losses, 10 wins, is not the trader for you. Do your research.
New Accounts
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.
Huge Gains After A Draw Down
Abnormally big winners are the sign of a trader who has seen the end of an enormous draw down and is betting it all on one last ditch effort. The account indeed recovers and to the new onlooker's eye, the guy looks like a true winning trader. The reality is for every 10 tries, the trader is lucky if even 2 make it to survival and recovery. These are the 2 that are wafting about in cyberspace searching for you. At their next draw down, they will almost certainly go for the "hail Mary" pass and the end could be ugly. Better not to pray your way into a winning situation, stick to more scientific methods.
That wraps up this article. As stated earlier, this treatise is only a glimpse of the evils that can befall the unwary forex explorer. - 23217
posted by X - Men @ 5:54 AM
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