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 is 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 do not understand the logic the trades are based upon.
Quite simply any FOREX Trading advisory service will lose money at some point.
They all do, (do not 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 do not have the discipline to follow the advice you will never make money and this comes from having confidence that a system can compensate 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 contracts. 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 – do not 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 do not 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 accept with this?
Are you happier with lower profits and lower drawdowns?
Some traders like to reserve their capital and others like to be more aggressive, so only pick a FOREX advisory service where you can accept 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 promised, so only buy from one who does.
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.