Guidelines To Choosing A Third Party Forex Signal Provider

By Tk Kearns

With the growing popularity and easy access to the foreign exchange (ForEx) market, more and more people are drawn to it as their financial vehicle of choice. Along with this popularity come all the extras. This includes all kinds of software, trading systems for sale, books, videos, and third party signal providers. Today I'm going to touch on a few points when seeking out a third party forex signal provider.

Before we get into choosing a provider we need to have a good understanding of what a third party signal provider is. A signal provider is a trader or analyst that generates trades that in turn get placed on your account. You can have several signal providers trading your forex account or just one.

The US Constitution states that all men are created equal. Unfortunately this is not the case with traders or signal providers. Some traders look like a million bucks at first glance but turn out to be bad news upon further inspection. To keep away from these types of traders we have to set some guideline to follow when choosing a third party signal provider.

1. The first thing I look at is whether the trader is a winner or a loser. This may seem obvious to nearly everyone, but I often see losing signal providers with 50-100 people trading their signals.

2. The next thing to look at is how long the trader has traded profitably. You don't want a brand new trader without a track record trading your real money account.

3. An important factor is the maximum drawdown that a trader has caused to their account to date. Big draw downs mean a greater chance of a margin call and a much bigger chance that you will never recoup all of the losses that take place in a massive draw down.

4. The first three are easy to look at. They will be displayed right on the main screen of signal providers to choose from. Once you get a few signal providers you are thinking of using, its time to dive a bit deeper into their history.

a. Take a look at individual trades. Are all of the trades placed in the same direction on the same currency pair? If so this trader has not yet seen a reversal.

b. Have a look at how far they let their trades get away from them. Is your signal provider letting trades get 300 pips or more against them at times? Do they close trades the minute they turn into profit? If so this is a trader who does not understand risk and reward and should not be considered to trade real money.

c. Do they add to losing positions? A trader who constantly adds to losing positions hoping it will turn for them is not someone you want trading your account.

5. Make sure that the signal provider that you choose is suitable for your risk tolerance. Choosing a very aggressive trader will not work for a very conservative investor no matter what the win rate.

These are just a few things to look for when choosing a third party signal provider to trade your forex account. You should always trade a demo account before opening a live account with real money. Remember it's your account. In the end you choose the signal providers, and you are responsible for what happens. - 23218

About the Author:

To learn more about Automated Forex Trading Systems visit Automated Forex Trading Systems.

Common Sense Guidelines For Forex Traders

By Ahmad Hassam

In forex trading, you will need a lot of common sense. Everything in forex trading is common sense. If you don't use common sense than you might as well not trade at all. Someone had rightly said a long time ago that common sense is so common that nobody uses it. Well, if you are going to become a successful forex trader than you need a lot of common sense. OK, now a few common sense guidelines for you as a trader:

1) You should always look for a reputable broker. Don't fall into the trap of some unknown broker. Your ability to trade effectively depends on consistent spread and ample liquidity. Anyone can open a position. However, your ability to close a position at a good price is more important.

2) Trading means making consistent steady profits! Learn prudent money management rules. Avoid using excessive leverage that puts your investment capital at risk. Always trade with a stop! Never try to win big in one single trade. This is not trading, it is gambling. Always live to trade another day. If you believe in winning big than quit trading and start gambling! But if you do that you will only ruin yourself.

3) Never ever trade emotionally. Stick to your plan and maintain your trading discipline. Always develop and make a trading plan before you take up trading. Set a reasonable risk/reward ratio for your trades. Never ever override yours stops for emotional reasons. Don't react to price action buying just because you think it is cheap or selling because you think the price is high now. Always use technical analysis to make your decisions.

4) You are not a punter. Always plan each trade. Don't punt. Punting is trading for the sake of trading without any planning or view.

5) Round numbers are dangerous in forex trading. Forex brokers always look for stop hunting around round numbers. Don't try to trade around round numbers. Don't leave stops at round numbers or obvious levels. If you do that chances are they will be triggered.

6) Don't add to a losing position unless it is part of a plan to scale into a position. In other words, don't double up just in order to recoup your losses. Only do that if it is part of a trading strategy.

7) When trading with a trend always use a trailing stop loss order. When trading against the trend be disciplined in taking profits and don't hold out for the last pip.

8) Emotions are your biggest enemies in trading. Never make emotional decisions in trading. Avoid emotional highs or lows on individual trades. Consistency should be your target. Treat trading as a continuum. Don't base your success on one trade.

9) Always keep an eye on the crosses. Try to trade multicurrency. This will hedge your risk.

10) Be cognizant of what news is coming out each day so that you never get surprised. Don't trade just ahead of an economic news release. Always beware of volatility following the economic releases.

11) Stay away from illiquid times like holidays or pre-holidays when liquidity is thin. Beware of central bank intervention in illiquid markets. - 23218

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Try These Cash Printing Forex Signals From Heaven. Know A Forex Trading System With An ROI of 3000% Per Month!

Buy Gold To Protect Yourself

By Garrett Strong

When trying to figure out how to buy gold, it's important to think about a few things. First, governments are out of control with their bailouts and excessive printing of money. Second, there is massive inflation going on right now and the unemployment rate is over 10% according to the governments conservative numbers.

Let us look at why you should be invested in gold. In 2001, the gold price was sitting at around $250/oz. Today the gold price is sitting at over $1,100/oz. So, for a one ounce gold coin it would cost you over four times the amount it did just 8 years ago. What other investments do you know have gained 400%, and not lost any value due to inflation like dollar related investments have?

Paper investments like stocks or bonds may have achieved the same returns, but the dollar has fallen sharply in value. The Dow Jones is proof that the dollar is crashing silently. When you price the Dow in gold rather than dollars it tells a different story. Gold's price rises when the dollar falls in value.

If the Dow has been in a bull market then you may be asking how this can be. The Dow may even crash as it rises to 20,000 or maybe 40,000. The dollar will be losing value faster than the Dow even if the Dow rises to those levels.

As the USDX falls below 76, there is suddenly the realization that the dollar will certainly be in trouble through the coming years. For those invested in dollar related assets it is time to get out. The USDX will most certainly fall to 65 next year like many economists are saying. Many experts believe that it will go as low as 40 in the next couple of years.

There is only one safe haven in a real world scenario like this. Gold and silver are the only safe hedge against inflation. As we see some people naively sit by and expect the government to throw them a bailout, others are preparing, and they know that the dollar's days as the world's reserve currency are limited.

This is the greatest bull market that the world has ever seen. Fiat paper currencies are being inflated all around the world, and we are in the middle of some very bad economic times. The unemployment rate is growing and our dollars are being evaporated into thin air.

A $7,000 gold price is not out of the question over the next few years. Some economists believe it has to go this high to compensate for inflation. The dollar is only being propped up by our faith in it, and that is why our government doesn't want you buying gold.

Gold bullion and silver bullion are smart investments. It may be difficult to afford silver bars or gold bars. If that is the case, you can buy American Gold Eagle Coins or American Silver Eagle Coins.

God bless. - 23218

About the Author:

Check out my website to learn more about how to buy gold.

Learn Forex The Right Way

By Bart Icles

Foreign exchange trading, or more commonly known as forex trading, is one of the many ways to invest your money. As in any other investments, there are risks involved and the right planning and strategy is essential. Some have made significant earnings through forex trading while there are also some who lose big. We might actually think that people who become successful in forex trading are only the smart professional ones who are well educated on stock exchange and economics. This is a wrong notion of those who are capable of succeeding in the forex trading business. Any regular person like you can also achieve the success that all the other ones have achieved.

There are many internet articles and trading schools that will guide you learn forex the right way. You should only get tips from credible sources and if you plan to pay for a trading school, you should make sure that you are getting your money's worth of forex education.

To learn forex, you'll have to go through certain stages. The initial stage of learning forex includes knowing the basics. In this stage you'll be able to learn the basic terms used, as well as the different strategies applied in trading. Then later on you will be able to formulate your own trading strategy where you incorporate all the basic strategies you have learned while at the same time making your own modifications. In formulating your strategies, it is best that you seek the advice of people who have experienced actual trading. In this way, you will be able to learn forex from more experienced traders and you won't be misguided by some seemingly correct strategies that won't actually do you any good. The next stage is the actual trading stage where you apply your trading strategies. This is where you try to make the most return on investment as possible and at the same time, this is also the stage where you can actually lose a lot. A lot of successful traders recommend that you take control of your emotions when trading. Discipline is one of the keys to be successful in this venture.

To learn forex, you should be prepared to lose some in the process. It is part of the learning process as others would say. But you should be careful not to lose that much and you should be able to realize what you are doing wrong and do something about it before you actually lose everything.

Before entering the forex trading business, make sure that you learn forex the right way. In this manner, trading would be more of a calculated risk with a high probability of making profit than a gamble. - 23218

About the Author:

Managed forex starts with a desire to learn and a drive to become a great trader. Learning mini forex trading takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

My experience with Forex Apocalypse Expert Advisor

By Kathy Alonso

The sales page seems too good to be true. Having little knowledge about Forex Trading it piqued my interest and after finding no negative reviews anywhere I decided to give it a try. The idea that it was a plug and play EA which could be set up and left to do what it does without being tweaked was very appealing to me. Reviews stated that it made few transactions but was very reliable. It was said to avoid risky short term moves and go for more long term earnings. After I purchased the software I was taken to metatrader.com which as stated on the page was recommended for use with this EA. The sign up process was lengthy and included giving my bank information. The software was only available for windows and so I had to install it on a friend's computer. I funded my account through Paypal and installed the Apocalypse EA. I had trouble getting the EA to start working and contacted MetaTrader support about the issue. Affter telling me to reinstall their software they said that they could not help me because they do not provide technical support for EA's. They suggested I contact the Forex Apocalypse EA support.

After scouring the website for a support link, phone number, or email I decided to simply respond to the email that i had been sent when i first purchased Forex Apocalypse. I sent my question about setting up the EA through this email. They responded within 24 hours, which was very impressive but by then I had figured out what the problem was. The EA did not have permission to do live trading. I changed the settings and was ready to go.

The settings of the EA were left on the Default which were the following: magic number : 20202111 eachtickmode : true Lots: .5 stop loss: 250 takeprofit: 500 trailing stop;: 65 slippage: 3 Nothing was changed.

I had it working on 30 minute graphs and all major currencies. It took a few days to make the first purchase and that same day I lost over $250. I was concerned that it may not have been running 24/7 so I subscribed to ForexHoster, which allowed the EA to be running 24/7 without any disruptions or delays. This costs about $60 a month. I also read through the Forex Apocalypse manual again and found that it said that the graphs should be set at 4 hours and 1 hour for best accuracy. I made these changes and left the EA running again. I was hopeful when a few days later the EA made another purchase and it looked like this one would make a profit. Unfortunately within a few hours I ended up out another (over)$250. I wrote to the Forex Apocalypse support and told them about my concerns and asked for any suggestions. I was told to use shorter time frames and that "EUR/USD is the recommended currency pair as it produces the most stable signals". So I made these changes But I kept losing money. And three weeks from the day that I first purchased this EA, I had lost almost 900 dollars. This was a hard learned lesson and I hope this review helps others. Now I'll be attempting to get a refund for this EA. It won't make up for all the money I lost but at least I can get my initial $67 back. I'll also be unsubscribing from ForexHoster sine I won't be needing this service anymore.

And there's no question that I will not be dabbling in Forex Trading again or falling for sales pages that seem too good to be true.

There are some great money making programs on the internet. Many require little or no investment and can be a reliable means of income for those willing to put in a little time. I've tried many and had success with a few. Find the best ones at www.ProsperLane.com. - 23218

About the Author:

For more information on how to make a living online visit ProsperLane.com and sign up for a free associate membership and watch live daily webcasts on all their products and services.