2Bull Forex Blog

If you are looking at buying a currency trading system then you need to be careful 99% are junk and won’t make you money to find the elite systems that can make you profits you need to check one key point.

The first point you need to check is the track record real or made up?

Check for the disclaimer below and if you see it avoid buying the system - here it is read very carefully:

“CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown“.

The fact is most of the systems you see on the net carry this disclaimer and it means the track record is not worth the paper it’s written on. Anyone can simulate profits in hindsight, knowing the closing prices - but alas currency trading is not that simple.

When buying a currency trading system always insist on a real track record and audited statements from a broker. I saw one system where the vendor simply shows copies of his bank statement and that’s his system sales, not trading profits!

You have to say to yourself if the vendor doesn’t have the confidence to trade his or her own system why should you?

Once you have a real time track record you have at least some proof the system has worked. The key point with any system is applying it with discipline so check the drawdown (worst peak to valley) and recovery time. Finally, check you’re happy with it and then trade it assuming this will happen again.

It’s also a good idea to learn the logic of the system as it’s easier to follow a system when you know how and why it will work longer term.

Another Way…

Is not to buy a system but get a free one. A great one which is simple and works is.

Richard Donchian’s 4 Week Rule

Look it up in our other articles its one parameter and it will beat 99% of the currency trading systems you see on the net.

The other way is to simply build a trading system yourself - it’s a lot easier to do than many forex traders think and in the next article in this series, we will look at how to build your own successful currency trading system in under a week.

In a famous experiment a group of traders had 14 days forex training and made $100 million in four years and went on to become some of the most famous traders of all time. If you want to trade forex then their story should be an essential part of your forex education.

The group were nicknamed “the turtles” and they were trained by legendary trader Richard Dennis. He set out to prove that anyone could learn currency trading, if they had the right education and mindset.

The group were of all ages, men and women, of various educational backgrounds and the only thing they had in common was - none of them had any trading experience.

The method they were taught was a long term trend following system which was based on breakout methodology and it was extremely simple; so simple in fact that anyone could learn it.

Now you may ask, if it’s that simple to trade and learn a system, why do 95% of traders lose money?

Dennis knew the answer to this.

Rather than just teach them blindly to follow a system, he taught them how and why it worked, so they could have the confidence and discipline to follow it, through a string of losing trades.

The method had more losers than winners - but Dennis taught them to stay with the system, take the losses with strict money management and hold the big profitable trades.

So could you become as rich as “the turtles”?

Maybe not, life isn’t like that but the opportunity is there for all.

There is nothing to stop you or anyone else, learning a similar method and enjoying currency trading success over the longer term.

All you need to do is get a simple system, understand it, have confidence in it and the vital element of discipline to apply it.

Discipline is the key, because if you don’t have the discipline to follow your trading system, you don’t have one!

Discipline is not easy to acquire but it’s a learned skill. If you want to be disciplined trader you can be - it’s as simple as that.

The turtles should be an inspiration to any trader and it shows what can be achieved and by anyone. I read about the story in 1983 and it inspired me to trade and I hope that it does the same for you.

Forex trading can offer a life changing income - sure it’s a challenge but if you like a challenge, then you could be on the road to a life changing income.

There are lots of forex trading signal services to choose from and if you find the right one can be making good forex profits but you need to consider two key points when using a service.

Here are the 2 points that can lead you to success with forex trading signals.

1. Beware Of This!

The fact is most of the forex signal services that claim top have made profits haven’t as the forex trading system has never been traded and this applies to well over 90% of services. Always check for the disclaimer below and if you see it don’t buy the service - here it is:

“CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown“.

This disclaimer allows anyone to make up any track record they like. Of course we would all be multi millionaires if we knew the closing price in advance - but we don’t forex trading is a bit harder than that.

Only choose currency trading systems that have a real time track record (audited) over 2 years or more - if you find one you need to consider the next point

2. Discipline

If you do find a forex signal service that has a good track record, don’t make the mistake of following it blindly. All forex systems will lose and have periods of loses and to stay with the system you need discipline.

Discipline only comes from understanding and confidence so make sure you learn the logic and have confidence in it to give you currency trading success.

If you don’t have the discipline to follow a trading system you have no method at all.

Lots of people will tell you discipline is easy but it’s not when your losing hard earned cash - make sure you are prepared for drawdown and losses every system has them.

You won’t find many good forex trading signal services on the net but if you follow the two points above the first to get rid of the junk and the second to ensure you follow your trading signals correctly, you will have a profitable and quick way to forex profits - just do your homework first

There one error that traders make more than any other when using forex charts and technical analysis and it ensures a wipeout of equity. This article will show how to avoid it and the best way to achieve forex charting success.

The most common mistake of all is trying to predict forex prices

Why?

Because if you predict all you are doing is hoping and guessing and that’s not a way to make money in any venture in life least of all forex trading. What you need to do is forget about predicting forex prices and simply confirm every trading signal via price action.

The Wrong way to Trade

Many traders simply look at a support level or resistance level and as prices approach it they buy or sell. Of course a trend in motion is more likely to continue than reverse and more often than not the level gets taken out and the trader loses their equity.

The Correct Way to Trade

You need to get some momentum indicators to help you gauge price momentum. If you don’t know what momentum indicators are look them up in our other articles but good ones to start with are:

Relative Strength Index (RSI) and the stochastic

These will tell you if velocity or strength of price is strong or weak.

For example if you are waiting for a support level to hold - you wait for the above indicators to prove that it has, before executing your trading signal. Sure you miss a bit of the move - but as you don’t know where the turn is going to be that’s not a problem.

If you trade with confirmation, you trade with the odds on your side. Using momentum indicators for timing is essential, if you want to enjoy currency trading success.

And one final point:

Never ever believe anyone who tells you there is a scientific theory to market movement - there isn’t. If there were we would all know the answer in advance and there would be no market!

Just remember

Trade with momentum, trade the odds and you will pile up big forex profits with your forex charts.

Forex scalping systems are over the net and it’s one of the most popular ways for novice traders to get into Forex trading - but how do you find a system that can make you big regular profits? Let’s find out.

Forex scalping systems don’t work and never will. Before we go into the reasons why you will always see the disclaimer below on any system sold that claims to have made money.

“CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown“.

Now - anyone can make money in hindsight but forex trading is a bit more difficult you have to trade not knowing the closing price!

Most vendors who sell forex scalping systems simply make track records up that appeal to the greed of the buyer. The buyer takes the loss in the market and the vendor as a guaranteed profit in his pocket.

Day trading doesn’t work and it never will because all short term volatility within a day or a few hours is random and any day traders should look at standard deviation of price in daily time frames.

You have countless millions of people all trading with different motivations and personalities and this huge diverse mass can do anything (and they do) in a short time frame.

As volatility is random this means you cannot use support or resistance levels because they mean nothing in short time frames and if you can’t use them, you cant get the odds in your favor and will lose - it’s as simple as that.

If You Want to Win at Forex Trading:

You need to get the odds on your side and that means using valid data and getting the odds on your side. You can swing trade or you can forex trend follow the choice is yours but please forget day trading or forex scalping systems - they don’t work.

Let me know if you find a forex scalping system that has a real track record, I have been looking for over 20 years and have yet to find one.