For some time now I have been doing some informal research related to the number and type of Forex Trading Systems or Methods. What I found astounded me. There are over 1,000 Forex trading systems on the market, and growing.
If I didn't see it myself I would have said "No Way." But "Way."
If you were looking for a new Forex trading system, it would be impossible to evaluate even a small number of these systems. And new ones come out almost every day.
While Capitalism is good, this huge number of systems is one reason why many people, that would like to trade Forex, just "Throw Up Their Hands" and go running from the room with frustration, information overload or whatever.
In addition, many of the so called systems did not even talk about the very basics, like "trading plans", charts, time frames, etc. I guess the Forex trading systems suppliers just wanted your money and you were supposed to use the "dart board" trading technique (which may have been better than their Forex system).
This unfortunately is giving a "bad name" to the Forex trading area. For example, someone gets a "system", it is no good, they lose money and they tell everyone that Forex trading is a "scam." Well Forex trading is not a scam, but many of these "systems" could be.
To be fair, there are many "very good Forex Trading Systems" on the market. Unfortunately, if someone uses one of these good systems and fails to make money they still tend to blame the system, not themselves. However, how do you know which Forex System is good and the trader was bad, or which is bad and the trader could have been good?
Where does a "Potential Forex Trader Go" for help?
This is difficult since every system says "it is the best" and most tend to sound good when you read about them and their testimonials. The new FTC rules may weed out some of these "testimonial" based systems.
There are a few ways for a potential Forex trader to proceed. First, recognize the potential problem. Learn basic information about Forex trading. It doesn't have to be a lot, and you should be able to "weed out" many of the "really bad systems."
Key areas to look for are: chart reading, timing, Forex signals, money management, trading plan, profit and loss targets, currency pairs, entry and exit criteria (part of trading plan) and "Live Trading Results." There are others but these are a start. Also, go to Blogs or Forums and read what people are writing.
Additionally, evaluate yourself. Do you have a lot of time to spend trading? If not this narrows down the field considerably to systems that can trade independently of you (fully automated Forex systems) or only require a limited amount of time each day to read setups (Forex Signal systems).
I could continue, but hopefully you get the point. Be careful, it is your money. Don't give up on Forex Trading. Many people currently are making and are going to make lots of money in Forex trading, whether you do or not.
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