In this article I will be answering the most common question that people ask me: what is a good trading method and what features to look for. I shall be delving upon why certain methods are not good and also a simple way to evaluate a trading method.
If you look closely you will find that some alleged forex trading systems and methods have the following features that I consider to be inadequate.
They are not complete systems of teaching. They focus more on hours of theoretical teaching and do not incorporate lessons for systematic plans that help you trade for profits. You simply have to look up a well known course by Bill Poulos’ Forex profit accelerator course to learn about systematic plans for trading.
They lack in risk management. This is the biggest mistake that any forex trading method can commit. Risk is inherent to trading in the markets and unless it teaches how to minimize it, the trading method is of no use. Bill Poulos, on the other hand has risk management as a primary lesson in his course.
Misplaced focus. They mostly focus on basic analysis. Reading fundamentals is a time consuming activity and understanding it is a subjective matter. Every person reads them differently and also requires a deep understanding of the economic and financial issues. If you fail to understand them correctly you will not be able to succeed.
They require you to day trade. Day trading requires you to sit before your computer for endless hours and wait for an opportunity to exit or enter the market. This is practically an impossible task for many people.
Now that you know the inadequacies of these so-called trading methods, have a look at what comprises a good method.
After having studied many forex trading methods I have short listed four criteria that must be part of a good forex trading method.
A good trading method must teach how to setup conditions that leave nothing to chance. It should teach you rules of entry, stop loss and exit strategy rules. Also, in line with its trading method it should also incorporate financial and risk management. It must use technical analysis. At the same time it should neither be totally mechanical nor totally automated. Personally, I prefer a forex trading method that takes only 20-40 minutes of your time on daily basis.
Using these simple guidelines you can evaluate a trading method and sift the pretenders from contenders. In short, only those methods can be rated as good methods that incorporate an exhaustive explanation of how to apply strategies, how to trade and protect them from risks. In this regard, the guidelines provided by Mr. Bill Poulos can give you the instant profits that you are looking for.