Forex Trading Systems – 1 Simple Way to Spot if it Will Lose you Money

<h1>Forex Trading Systems – 1 Simple Way to Spot if it Will Lose you Money</h1>Author: <a title="Kelly Price" href="http://www.articlesbase.com/authors/kelly-price/24797.htm">Kelly Price</a> There are numerous vendors on the net selling track forex trading systems with hyped copy and making claims that seem in many instances unbelievable and of course they are – over 90% of forex trading systems on the net that are sold lose.

There is an easy way to spot one that will probably lose you money and it’s this:

Simply check the track record and look to see if it has a hypothetical disclaimer.

The disclaimer you will see required by the CFTC below. When you read it, you will see that a track record that has this disclaimer needs to be treated with extreme caution – here it is:

“HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOW”

Could You make money KNOWING the closing prices?

Of course you could!

My 7 year old niece could do it and so can anyone who can read and write.

Vendors of Forex trading systems very often abuse this and in many instances they simply make up the track records, to make them look attractive. Greedy and naive traders buy the forex trading system and the track record and then are surprised when it loses!

Not every trader out there who sells a forex trading systems is trying to rip off people and you do find many vendors who try and present truthful hypothetical track records - but if they have not been traded should you trust them?

Surely, if the vendor is selling a forex trading system where you are following signals (and need to do this without questioning the system's logic) they should have traded their own money first so you can have the discipline and confidence to follow the signals?

If they haven’t traded their own money in it why should you trust it?

There is no “free lunch”

So if you have ever wondered at why a track record looks to good to be true – the reason is its odds on to be done in hindsight and as the old saying goes: “if it looks to good to be true it probably is”

Today, the internet is seeing a mass of vendors with no trading experience at all, use clever marketing copy and hypothetical track records to sell their systems.

When buying, tread with extreme caution and check the track record first and odds are it will be hypothetical.

About the Author: NEW! FREE 2 x TRADER PDFS & NEWSLETTERS 
 
On all aspects of becoming a profitable trader including: Free critical trader PDFS, and updates on the best high reward trades via <a target="_new" href="http://www.learncurrencytradingonline.com/FREE_info.html">FREE Essential Forex Trader PDF''S</a> visit our website at: 
<a target="_new" href="http://www.learncurrencytradingonline.com/index.html"><a target="_blank" href="http://www.learncurrencytradingonline.com/index.html">http://www.learncurrencytradingonline.com/index.html</a></a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/currency-trading-articles/forex-trading-systems-1-simple-way-to-spot-if-it-will-lose-you-money-212668.html" title="Forex Trading Systems – 1 Simple Way to Spot if it Will Lose you Money">Forex Trading Systems – 1 Simple Way to Spot if it Will Lose you Money</a>

There are numerous vendors on the net selling track forex trading systems with hyped copy and making claims that seem in many instances unbelievable and of course they are – over 90% of forex trading systems on the net that are sold lose.

There is an easy way to spot one that will probably lose you money and it’s this:

Simply check the track record and look to see if it has a hypothetical disclaimer.

The disclaimer you will see required by the CFTC below. When you read it, you will see that a track record that has this disclaimer needs to be treated with extreme caution – here it is:

“HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOW”

Could You make money KNOWING the closing prices?

Of course you could!

My 7 year old niece could do it and so can anyone who can read and write.

Vendors of Forex trading systems very often abuse this and in many instances they simply make up the track records, to make them look attractive. Greedy and naive traders buy the forex trading system and the track record and then are surprised when it loses!

Not every trader out there who sells a forex trading systems is trying to rip off people and you do find many vendors who try and present truthful hypothetical track records - but if they have not been traded should you trust them?

Surely, if the vendor is selling a forex trading system where you are following signals (and need to do this without questioning the system's logic) they should have traded their own money first so you can have the discipline and confidence to follow the signals?

If they haven’t traded their own money in it why should you trust it?

There is no “free lunch”

So if you have ever wondered at why a track record looks to good to be true – the reason is its odds on to be done in hindsight and as the old saying goes: “if it looks to good to be true it probably is”

Today, the internet is seeing a mass of vendors with no trading experience at all, use clever marketing copy and hypothetical track records to sell their systems.

When buying, tread with extreme caution and check the track record first and odds are it will be hypothetical.

NEW! FREE 2 x TRADER PDFS & NEWSLETTERS

On all aspects of becoming a profitable trader including: Free critical trader PDFS, and updates on the best high reward trades via FREE Essential Forex Trader PDF''S visit our website at:
http://www.learncurrencytradingonline.com/index.html

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trading-systems-1-simple-way-to-spot-if-it-will-lose-you-money-212668.html

Article Tags: Forex Trading, Currency Trading, Currency Trading System, Forex Trading Systems, Track Record

Related Articles
Related Q&A

Latest Currency Trading Articles
More from Kelly Price

Forex Market Whipped Up Into a Frenzy!

By: Rob Trader | 22/12/2009
As you know the Forex Mutant launch went live yesterday, and the feedback so far has just been amazing. With only 525 copies made available by Lee and his team, I already knew this was going to be a big deal… but I didn’t expect it to be huge like this! Copies have been literally flying off the shelf, and even with an over two hours server crash, where people could not get to the site, they now only have a few spaces left.

Learn Currency Trading Online for a Quick Path of Becoming a Forex

By: Mike Honiya | 22/12/2009
The Forex Market involves a trading system that involves all the currencies around the world. There is constant buying and selling of the currencies which will also depend on situations that are happening right in that very country as well. With the Forex market there is a constant change in the development and improvement of the currency being traded depending on real time events.

Forex Day Trading: The Secret Of Success In Forex Day Trading

By: Mike Honiya | 22/12/2009
If you are interested in trading in the foreign exchange market, it will be a good idea to learn all you can about it. Forex trading is a complicated and fast-moving environment where billions of dollars exchange hands every single day. While this lure of wealth can be very tempting, a lot of investors who enter Forex unprepared have lost a lot of money.

Choose Your Forex Trading Platform Wisely -Forex Currency Trading

By: Mike Honiya | 22/12/2009
Forex signal software enables every trader to have a simple access to current events and situations of forex trade in the market. It updates them whether it is the right time for them to place a trade or if it is not. It also gives them information with a real time data whenever and wherever they are on the world. It gives an easy right of entry to the latest forex market world.

Forex Megadroid Trading Robot

By: Mike Honiya | 22/12/2009
The market has found a latest entrant into the bandwagon of automated software programs which can perform forex trading operations for you and that is the Forex MegaDroid. Developed by highly experienced and intelligent forex players for the last four decades in the forex markets, Albert Perrie and John Grace, they claim that one can start making money very soon with the help of this software.

IvyBot Review – Currency Trading Robot

By: Mike Honiya | 22/12/2009
IvyBot is a new trading system released a few days ago by developers considered to be among the most intelligent and smart minds in the world. Byron and his IvyBot team released their new product on 7/28 and named it this way because the members of the team are graduated from Ivy League Universities.

Forex Street. The Foreign Exchange Market

By: Mike Honiya | 22/12/2009
There are countless applications out there that profess to make Forex trading simple, generating a cash flow with little effort on your part, then again these have a tendency to be feebly made. Amazingly, traders are in spite of everything purchasing these applications, despite understanding that nearly all traders are currently losing money, which could not be the case if these systems held up to their agreement.

Auto Forex Trading System,Automated Forex Trading Systems

By: Mike Honiya | 22/12/2009
For about one hundred dollars you could acquire any amount of Forex trading programs that declare to create you a small fortune while you lay back and relax. Many of these applications are now available for sale since the traders who purchased them did not do what they were rumored to and these applications did not produce money. You may stand to lose quite a bit of money if you put all of your trust in automated software above several of the top fund managers on hand.

Increase Sexual Stamina - Last Longer in Bed and Enjoy More Satisfying Orgasms Naturally!

By: Kelly Price | 19/12/2009 | Sexuality
If you want to increase sexual performance and last longer in bed the herbs enclosed, will work for both men and women and help you enjoy better and longer lasting sex.

Become a Successful Currency Trader - You Will Only Win If You Know the Answer to This Question!

By: Kelly Price | 19/12/2009 | Currency Trading
Over the years I have taught thousands of currency traders and the way I have used to see if they are likely to succeed is to ask them a simple question which is enclosed in this article--so let's take a look at the question and the wrong and right answers.

Free Forex Trading System - A Simple One You Can Use Right Now For Big Profits

By: Kelly Price | 19/12/2009 | Currency Trading
Here we will look at a Free Forex trading system which has been making traders great profits for over 30 years and it will always make money, so let's take a look at it in more detail. The system we will look at here, has and its made countless millions in profit and was devised by highly respected trader Richard Donchian, who is seen as one of the most influential traders of all time...

Forex Trading Made Simple - A Powerful Easy to Understand Strategy For Triple Digit Gains!

By: Kelly Price | 19/12/2009 | Currency Trading
Forex trading is actually simple and this remains a fact despite the overwhelming majority of traders lose money. Anyone can learn to trade successfully and this article will show you, a simple Forex trading method you can use to make triple digit gains.

Female Low Libido - Increase Sexual Desire and Wellness Naturally With Proven Herbal Cures

By: Kelly Price | 19/12/2009 | Women's Health
Female low libido affects countless millions of women worldwide and causes misery but the good is you can increase sexual desire and improve your overall health with the proven herbs which we will look at in this article. Before we look at the herbs and what they do, lets take a look at the major causes of low libido in women.

Female Low Libido - Increase Sexual Desire and Wellness Naturally With Proven Herbal Cures

Hard Erection - How to Get More Blood Into the Penis Naturally For a Harder Erection!

By: Kelly Price | 12/12/2009 | Sexuality
If you want to get a hard erection, you need to fill the penis with more blood to swell it and harden it and keep the blood flowing for a longer lasting erection and the key to this is the chemical Nitric Oxide which is needed for any erection to take place - Let's look at how to get more naturally.

Great Sex - The Key to Better Longer Lasting Sex is Strong Blood Flow - Boost it Naturally!

By: Kelly Price | 12/12/2009 | Sexuality
If you are a man or a woman, the key to great sex is to deliver strong blood flow to the sex organs and keep it flowing, so you last longer and enjoy great sex. If you want to boost blood flow the herbs we will look at in this article will do this and also give you a number of other sexual health benefits at the same time...