Looking for the best Forex signals systems is the search for what has been termed the “Holy Grail” of Forex trading. There is an overarching belief in the Forex trader mentality that the “the best Forex signals system” does exist somewhere and that if you look long enough, you will find it. This would be a system that always results in gain in a given trade or currency-pair over the long-term with very little changes to the system needed.
No matter where you look on the Internet, you will find individuals and companies claiming to have an accurate Forex signals system that always works or that can predict specific values or market trends for guaranteed profitable trades. Of course, these will work only if they are “followed exactly.”
The Best Forex Signals – The Holy Grail
The first thing to point out is that there is no “Holy Grail.” This does not mean that there is not a best Forex signal for a certain aspect of trading or that the best Forex signals cannot be discovered. Large currency trading houses all have a black box that contains the formulas and factors that form their trading signals system. Every trader has a signals system, even if using their instincts and observations are the only parts of their system that they use.
“Black Boxes” refers to the trading systems, or “signals system,” that a trading house will have developed over time that allows them to execute profitable trades consistently. That consistency is over time and is an average, not a guarantee. No matter how impressive a financial firm’s record of accomplishment is, there will be losses due to bad trades or resulting from catastrophic, unexpected market forces. The signals system will be their trading style and will be individual to them.
The Best Forex Signals Provider
It rapidly becomes evident that the selling of Forex signals systems or Forex trading software (just as with stock trading software) is a huge market. There are thousands available for purchase and even more that you can download free. There are free Forex signals provided by brokers and Forex signals software that can be downloaded or purchased. Any trader that can show a provable record of successful trading will be likely either to sell his personal system based on its “proven” performance or to give it away free.
In the case of the former, if the system were really the best Forex signals system, they would not be selling it to make money as they would continue to use it to make money. Once a given signals system is used by enough people, it can actually lose effectiveness. The best Forex signals system is your common sense combined with your intelligence and willingness to learn. If you apply yourself, you will develop your own “best Forex signals system.”
This is the Best Forex Signals Free System, Unquestionably!
1. Learn all you can about Forex. Visit free forums, such as BabyPips.com, and go through all their tutorials – take notes
2. Go to independent forums and get Forex software and broker reviews. Websites such as ForexPeaceArmy.com and Forex-TSD.com are good sites, but there are many other good forums.
3. Realize from the start that non-ECN brokers, or any broker that has a dealing desk, actually trade against their clients. These market makers (also called “bucket shops” by traders) are often unregulated and have great discretion on how quickly and at what price they fill orders.
4. Open a demonstration account (demo account) with a broker and trade for several months using only virtual money.
5. Try different trading system software programs, such as Stealth, London Gold Rush, etc. You may even trade some automated Forex systems like FapTurbo and Megadroid, but, again, only in demo mode.
6. Once you are consistently profitable in demo trading, switch to a live account but use small margin and small pip values. Probably the largest problem in Forex trading is that you must follow your system rules exactly and not let your emotions get in the way. You will not discover how much work you have to do in this area until you are risking real money. You must follow your system.
7. Practice money management. Never risk more than 1% of your account capital in any one trade (this means you must use stop loss orders set at the 1% loss values – this likewise means you do not need to be using a broker who does not have a wide range of order options such as stop loss, stop limit, buy limit, etc.).
8. Make your own trades, monitor them closely. Treat this is a business, not as an outlet for your gambling urges.