miércoles, 2 de marzo de 2011

Trade with a expert advisor or based on a forex signal service ?

People willing to earn an income from the currency trading without great results trading by themselves start looking at these two alternatives to make money from the forex markets, either possibilities are viable but there are points you need to know before making any selection.

The internet sites where they offer the expert advisors have very convincing sales pitch claiming the expert advisor will make you 200% of your trading investment capital in 3 months, double your account in 1 month and make you imagine you will be rich by the end of the year just by paying 149$.

Just think for a moment, if that was true absolutely everyone will be rich by now, no? All financial institutions will be acquiring this robots and generating trillions with it, there would definitely be no world crisis, no need for government to bailout corporations thank to this businesses selling the robots for just 149$.

Do forex signals give good results? They could give good results but only for a small period of time. Markets tend to alter the way they move so the principles programmed to the trading robots might make it perform until eventually the market change. This robots tend to produce a lot of trades in a day having a high risk compared to its reward, they produce 20 trades ending with 18 winners of 15 pips each individual trade but two losers with a lost of 80 pips on each trade, so as long as the market doesn’t change it will work but once it does change, you will lose what you made in 3 months in just 10 days, the trading robots will be generating trades and risking 80 pips on each trade, it could possibly lose in a single trade what it took 5 trades to produce.

On the other side we have forex trading signals, forex trade signals that are made by an experienced trader that is familiar with how the market works, a trader that will take care of your risk at all times, a service where you can ask why did he closed a trade at a certain price and you will get a reply.

A forex signal service won’t be as attractive as a robot but your trading account will show you that you made the best decision.