2Bull Forex Blog

In the stock market it’s not impossible to watch a stock rise up more than 100% in less than one hour on a good momentum day. The stock market news constantly reports of momentum stocks that are breaking out & achieving tremendous gains in a matter of hours. And even when you can see traders that make $3000 on a single trade, it is also not unusual to watch beginner traders lose their shirts because of a series of unwise decisions

The problem is that if you don’t know what stocks to look for and how to properly approach them you could end up wasting cash instead of making your profits grow. You can’t just trade stocks like if you where gambling on a casino.

That’s why the most important aspect of stock trading is the knowledge FILTER you employ to make your buy and sell decisions.

There are many “fantastic” stock systems outhere, but you need to test them in order to discover which ones help you the most. That’s part of your homework as a stock trader. Test, test and test again.

Bogus stock trading software programs and complicated day trading systems that rely on a “boat load” of technical analysis indicators can confuse you and make you slow, and being slow when day trading stocks can be as dangerous as not knowing what to do in the first place.

The worst thing that can happen to a beginner stock trader is to get information overload. It’s better to go step by step, and test a practical stock trading strategy that can show you how to focus on simple ways to make money while picking SOLID hot stock trading opportunities once at a time.

In the end, stock trading is all about buying and selling according to your especific knowledge FILTER. Once you master and follow your proven filter parameters like a clock, you can expect to start making serious amounts of cash on a consistent basis.

There are more e-books and advice on FOREX day trading than on perhaps day trading than any other method of trading currencies.

Can you become a successful day trader? Let’s find out, by looking at the facts.

The answer is you probably won’t make money FOREX day trading and if you don’t believe me consider these facts

1. Getting the odds in your favor

Successful trading is all about getting the odds in your favor and it is impossible to predict what will happen in a day session.

Why?

Because currencies represent the underlying health of the economy and trend longer term and longer term trends are the ones to focus on.

Short term movements in a day are random, so it’s simply like flipping a coin.

2. The fundamental rule of investing

Is run your profits and liquidate your losses quickly.

You can certainly liquidate your losses quickly by day trading, but you can never run your profits far enough to cover your inevitable loses, as you close your profits to quickly.

Your profits are simply not big enough to cover your loses, so its bye bye, to your account equity.

This is simple common sense!

It gets worse, here is another problem.

3. Transaction costs

If you FOREX day trade your transaction costs are high, they add to losses and restrict profits even more.

Why do people day trade then?

There are several reasons:

1. They think it’s less risky

But by trying to avoid risk they are actually creating it and give them no chance of winning.

2. Greed

Investors see e-books and guru’s with convincing copy that appeals to their greed (mostly from book sellers who have never traded in their lives) and believe headlines such as “trade with 90% accuracy” and other stupid statements.

Humans are greedy and even though it’s obvious no one would sell a system like the above as they wouldn’t need to! They would keep quite, bank the profits and wouldn’t need you.

Ask anyone selling advice, to produce a real track record, of real dollars and you won’t get a reply.

3. Brokers

Day traders are great it means commission, less risk on their books and contrary to belief, no broker is reliant on traders making money for their balance sheets.

Most brokers assume that the trader will lose anyway, so why not make as much as they can? FOREX Day trading serves this purpose.

If you want to make FOREX Trading profits don’t day trade.

The fact is the odds are against you and if you trade why not put the odds in your favor surely that makes more sense?

Many new traders want to take FOREX Trading advice to give them success, but what should they look for from an advisory service?

How do you pick FOREX trading advice that can make you profits?

Let’s find out.

Here some of the things you should look for in terms of FOREX trading advice.

1. Know how the advisor makes trades

You will never make money following FOREX trading advice if you don’t understand the logic the trades are based upon.

Why?

Quite simply any FOREX Trading advisory service will lose money at some point.

They all do, (don’t believe track records that look to good to be true they probably are) so when the losses occur, unless you know how the advice is generated, you wont have the discipline to stay with it.

Currency trading success is based around the following equation

A logical method + the discipline to follow it = currency trading profits

If you don’t have the discipline to follow the advice you will never make money and this comes from having confidence that a system can overcome losing periods and lead you to currency trading profits

2. Look for a real-time track record

A lot of FOREX Trading advice is presented with a hypothetical track record (lets face it we can all make a profit if we know past data) and they all look great but the acid test is trading in advance.

Look for a real time track record of the advisor making money in currencies. That’s real dollars and account statements.

Today, many e-book writers offer advice with simulated track records and simply appeal to the greed and stupidity of buyers – Don’t fall into this trap.

Get a real time track record and make sure the advisor has put their money where their mouth is and have a track record of success.

No track record? Then don’t buy – PERIOD.

3. Does the advisors strategy suit your mentality?

Does the FOREX trading advice suit your trading mentality?

For example, they may make 100% annual gains but with 80% drawdowns at times.

Can you cope with this?

Or

Are you happier with lower profits and lower drawdowns?

Some traders like to preserve their capital and others like to be more aggressive, so only pick a FOREX advisory service where you can cope with the worst drawdown (peak to valley) they have had in the past.

4. Look for a satisfaction guarantee

Most reputable sellers of FOREX trading advice will give you a satisfaction guarantee if not delighted, so only buy from one who does.

Final words

There is some great FOREX Trading advice you can buy but you need to be careful to get a service that has made money, to inspire confidence and one that suits your trading mentality.

No matter how good the service is, make sure you understand the logic it is based upon, so you can stick with it for bigger FOREX Profits.