Over the years we’ve been searching for the best currency trading system out there on the market. Believe it or not there are a ton of great forex trading systems and currency software trading programs that have proven themselves over time bringing back consistent results. However in order to identify the best currency trading system, it’s important to have a basic understanding from both a technical and fundamental standpoint of the forex market.
Finding the right currency trading system can determine success or failure in the market place. More often than not a good signal service provider will bring back modest results and continue to produce quality buy and sell signals.
Here are a few tips that will help in identifying a sound forex currency trading signal service provider. First we must always test the system before we actually use any real money. Anyone can download a trading platform with metatrader4 and use a fake account in real market conditions for testing purposes. Secondly, knowing the type of money management the signals service suggests is a must. Knowing when to enter and exit the market is great, but applying money management to this is even better. Here’s a good example, if we are targeting a 50 pip take profit point and our stop-loss is set to 25 pips, this means we need to be right 50 percent of the time to be a winning trader. If we adjust our stop-loss to 10 pips, we now have a 5:1 win to loss ratio, meaning we now only need to be right 20 percent of the time to be a winning trader. What we’ve done is essentially put the odds in our favor. The truth is a lot of traders lose more times than they win, however they are still able to make consistent profits because of money management techniques like this.
Knowing the basics of technical trading like support and resistance can help tremendously. Simply knowing when the market is going to reverse can keep you out of bad signals and keep you in the good ones. For example, let’s say your signals service sent out 10 signals on the week and only 4 of them ended up being winners. However because you know where the support and resistance lines were or where the market was going to reverse, you stayed out of those bad trades and ended up only taking 4 of the 10 trades, and out of those 4, 3 were winners.
Many forex signals services produce quality signals and in some cases have accuracy greater than 60 percent. We’ve been very fortunate to find a few that have worked well over the past few years. Do your research and be sure to apply what’s discussed here; it will certainly help you in your trading endeavors