Currency Trading Systems – Essential Tips For Choosing One

Using a currency trading system to make profits from online forex trading is an option more traders than ever are considering.

Cheaper and more powerful computers and software, combined with the rise of the Internet have made online currency trading systems within reach of all traders.

The theory is simply buy a system, follow signals, sit back and start making regular profits.

The vast majority of systems you can buy are simply not worth paying for - and they’ll actually ensure that you lose money.

Taking some time to choose carefully, is essential to get one of the minority that can and do make big consistent profits.

So why do systems lose lets look at the two main reasons.

1. Curve Fitting Data

Whenever you see a hypothetical track record, you need to see if it has been curve fitted or optimized.

These systems always give extraordinary performance in back testing - because the rules and parameters have been tweaked to fit the data.

This was once described by a trader as shooting at a barn door, and then drawing circles around every hole later, so that each shot scored was a bull’s-eye!

We can all make a track record look good if we know the past data and you never see a hypothetical track record that does not make profits.

However hypothetical track records rarely show the same results in real time.
Clues to an optimized system are those that use, different rules and parameters for trading different markets or different contracts.

If the system is based on sound logic, then it should work in any market, without the need for optimization or curve fitting to fit the data.

1. Black-Box Systems

Most systems that are optimized fall into this category.

The definition of a black box system is one where the logic is not revealed to the buyer.

Even if a forex system is based on sound logic, the trader must have confidence in it to trade it with discipline.

Of course for this, he needs to understand exactly how and why it works.

If you don’t know the logic of the system, you won’t have the confidence and discipline to continue to follow it, when it suffers a period of losses.

Discipline is an essential ingredient of currency trading success.

Here are some tips to help you separate out the systems that are likely to lose, from the ones that could make you big profits:

1. The Methodology is Revealed
You can only have confidence in a Forex trading system if you know how it works.

As you will have the confidence and discipline to follow it until it makes a profit and be able to taking losing periods and remain disciplined.

Discipline is essential to success and comes from confidence

2. Track Record
Has the system made money in the real time and is there a track record for you to look at?

This is a question many traders never bother to ask.

They simply accept a hypothetical track record, which as we have seen is fraught with danger.

A real time track record, won’t guarantee Forex profits, but it will at least show the system is based on sound logic.

If there’s a hypothetical track record and you want to buy the system, make sure it’s audited in real time with all transaction costs deducted.

Many vendors do this to test their systems.

While the track record is still hypothetical, the fact it’s traded in real time, gives you confidence in its ability to perform.


3. Simple Systems Are Best

Simple systems tend to work best - as they tend to be more robust in the real world of trading, with fewer elements to break than complicated ones.

Simple systems tend be easy to understand, easy to apply, and generally more profitable and most of the top systems contrary to popular belief are actually simple.

4. The Vendor
You should research how much support the vendor offers - and a bit about their background – like are they a trader?

Many systems are simply sold by marketing organizations that use hypothetical track records and enticing sales copy – don’t fall for this ploy.

Look for a money back guarantee – this will show the vendor is putting his money where is mouth is and has confidence.

If you do your homework, it could help you find a forex trading system that will help you build long term capital gains and is time well spent.

Currency Trading Tips & Strategies

The use of currency trading tips has been a very useful guide in the comprehension and application of strategies and decisions in the currency business environment. The currency trading tips has based its information on meticulous research and assessment of the economic factors surrounding the market. This is very important considering the fact that failure and success in the currency trading market is separated by a very think line.

This means that one wrong move could easily lead to failure due to the level of competition and the very fast paced and complex environment. That is why the currency trading tips carefully covers all the necessary topics that will guide traders and marketers to find the best solutions in the easiest way and most risk free way possible. But the main principle used by the forex trading tips and guide is that money is a very liquid investment.

This means that the value of money is unstable and could go up and down depending on the economical condition of the country which is certainly influenced by the political and social aspects within their territory. Many companies who establish their own currency trading tips assesses and observes the country and currency by considering all the variables involved. Once there has been a crisis, it would surely lead to economic deterioration and ultimately, less value for the money. Many currency traders have adopted this method of consideration which has tremendously helped them to understand and comprehend the situation. The forex trading tips has thought people that knowledge and information is the best weapon in the forex trading market.

By Timothy Stevens

Top 5 Online Stock Trading Tips

These online stock trading tips are used by the most successful traders in the world. Successful traders understand that there are a set of basic rules which must be followed day in and day out in order to be a profitable trader. Here are the things you must do.

You must have sufficient working capital. If you don't have enough working capital you won't have the staying power to weather the many market fluctuations. With market volatility comes equity swings. You want to survive these periods and have the capital available to take advantage of trading opportunities in the future.

You must have a plan. Without a trading plan you are flying blind and banking on hope. Hoping that you make money in the stock market is not the same as having and executing a plan to make money in the stock market. Successful businesses have business plans and your stock trading business should be no exception.

Stay focused and disciplined. Stock trading requires focus. Everywhere you look and listen there's news and opinions about where the market is going and what the economy is going to do next. You will have to be disciplined to follow your trading plan. Work to weed out unnecessary distractions and so that you can stay on track.

Learn to control your risk. Although risk control should be an integral part of any trading plan or system it's importance cannot be stressed enough. Poor risk control is the number one reason inexperienced traders fail.

No list of online stock trading tips would be complete without including the following: You must have a profitable trading system or method. I know it sound completely elementary, but you would be surprised to know the number of traders who randomly place a trade and hope for the best.

By Reginald T. Hobbss

FOREX Tfrading Systems - How to Get One for Big Long Term Profits

Buying a FOREX trading system can be a way of making big consistent profits and being automatic means that you can do so with the minimum of effort.

You can find good FOREX trading systems from vendors, but be warned over 95% of them are junk.

In this article we will look at how to find one with the potential for making capital gains.

1. Don’t Buy a FOREX day trading system!

Most novice traders do this and lose.

Day trading simply does not work – All short term volatility is random.

If you are trading FX, ignore the promises of profits, the reality is your account will get wiped out – which leads me onto my next point.


2. Always ask for a real time track record

Most FOREX Trading systems don’t have real time track records.

You do however get a hypothetical track record.

For those of you who don’t know what this is – it’s a track record designed in hindsight, knowing the closing prices already.

No wonder they all make a profit!

Ask yourself this question:

Why would you give money to someone who does not trade their own system?

If they don’t have the courage to trade it why should you?

Look for a track record of at least two years, ask for audited proof of the systems performance and this should be net of all fees.

3. Make sure you understand the systems logic

Never buy a black box system where the logic is not revealed.

The reason for this is that if you don’t know the logic the system is based on you probably won’t have the discipline to stick with it when it runs into a period of losses which all systems will do.

From understanding the logic comes confidence and from confidence comes discipline.

4. Drawdowns

Always look at the worst peak to valley drawdown and time to recovery and then ask yourself the question:

Can I handle that without throwing in the towel?

Many systems have great gains over the long term but can draw down by 50% or more – if you are not happy taking this risk you will probably not stay with the system.

Always assume your worst drawdown is ahead of you.

5. Guarantees and support

I like to know who I am dealing with find out something about their past, their views and what support they offer and think this is something all FX traders should do.

I also like a money back guarantee as well so if this is part of the package all the better.

Reputable vendors if you ask serious questions will normally be more than happy to answer your questions and queries so do so and don’t deal with a vendor until you feel comfortable with them.

Most FOREX trading systems sold are:

Junk and not worth the cash, the best way to weed them out is to do the track record test – get a real one or don’t buy.

That may not guarantee you currency trading success, but if it is over a long period of time and has produced profits you can at least assume the logic is soundly based.

Picking a FOREX system to trade is really all about using common sense, cutting through the advertising copy and seeing the facts.

If you spend some time shopping around, you can find one of the minority of systems that not only can deliver you value for money, but also give you big profit potential from global FOREX markets.

By: kelly price