So you want to choose a great forex system.
Firstly, congratulations on realising that you
need a system, as many people trade without one, which is not a good idea.
Secondly, you're about to realise that it's important to choose a good system,
and there are a few guidelines to this.
Realise that everyone may choose a different system that's considered the best
for them, as everyone has different preferences.
So have a look at these criteria.
Here are 7 criteria
to consider when choosing a currency trading course:
1. Are you getting a course which simply introduces you to forex, or a course
which will teach you a specific forex system?
2. Is there a money back guarantee on the course?
3. What times of the day do you need to trade the system?
4. How long does it take to assess the market and to trade the system?
4. How long does it take to assess the market and to trade the system?
Some systems take 15 minutes four times a day to trade, while others take a
few hours total per day. On the other hand, systems that trade major economic
announcements will only trade during these announcements, so you know exactly
when you need to be available.
5. The performance of the system, including the profitability of the system,
shown as either pips per month or dollar amounts based on a certain float size,
the maximum historical drawdown of the system, the consistency of the system,
and the “profit-loss”, “win-loss”, and “profitability”
ratio.
You'd want to study these carefully so that you can compare one forex system
with another. You may not find all of these details on their websites, but you
normally should be able to find at least the profitability, the consistency,
and possibly the drawdown and win-loss ratios. To read more about how to tell
if a forex trading system is a good one, go to this tutorial at http://www.theforextrader.net/forex-systems-strategies.php
6. Is the system 100% mechanical, discretionary, or both?
Now, depending on your trading background you may have a preference for one
type of system to the other.
There are systems that fall into all 3 three categories which are good ones.
If you have a 100% mechanical system, you'll need to learn and closely follow
the rules to gain the result that the system was designed to achieve.
For part discretionary systems, there are rules of course, but there may be
discretion needed to interpret whether the set up of a trade passes or not,
which will require practice.
Ideally you'd also have support from the forex trading course to help you're
trading the system well. With both types of systems you should paper trade to
ensure that 1. you're able to apply the system rules, and 2. the system is profitable!
7. Is there support after you do the forex trading course, either via a forum
or email support?
So there you go.
Some food for thought!
Have some practice looking at and then choosing some forex training courses.