Currency Trading System: Finding a Profitable One

By: Kelly Price

The online forex trader has plenty of currency trading systems to choose from but how do you find one that can make you big gains? If you follow the two tips here you can find a trading system that can lead you to currency trading success.

The first point to keep in mind is that most forex trading systems sold do not make money and have never actually been traded - the track record is not what it appears to be, let me explain further.

Many currency trading systems are put together with hyped copy and a track record that looks to good to be true and most of the time it is

Why is this?

Because it will normally carry a disclaimer saying they have been simulated in hindsight knowing the closing data - simply look on 95% of track records and you will see this.

It has not been traded real time and this is of course a problem.

If we all knew tomorrows price today we would be rich but it's not that easy unfortunately!

These track records should not be trusted in most cases.

If the vendor has a mechanical trading system he should have the confidence to trade it and if he hasn't - why should you want to trade it and see if it works?

If you are lucky enough to find a track record and a system you like you still need to execute the trading signals and this presents traders with another problem even if the system has made money:

They need to understand how and why it works, so they can have confidence to execute the signals with discipline - if you don't have the discipline to do this you have no system at all!

Most traders don't know how the system works, hit some losses and discipline goes - so make sure you have the confidence and discipline to follow the system by knowing and understanding the logic it's based upon.

Most traders like some input and here they can pick systems they can learn and apply themselves so they have some input or control.

Traders generally like some input into their forex trading and if you are one of these people pick a trading system you can learn and apply at your discretion.

Currency trading systems can make money but they do present traders with problems of not doing their homework and ending up with one that's junk or not being able to follow a system because they lack discipline.

There are good systems spend you time looking around and pick either a totally discretionary one, or one with a manual override to fit your personality.


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