To ensure that you arc getting a fair shake, it is best to make sure that the "expert" or "system" has no relationship with any broker. A dead giveaway is them asking you to trade with their "preferred" broker, which is just another way of saying that they make a pip or two out of every trade that you place. You want to steer clear of anyone making money from your trading, since at the end of the day they do not care if you win or lose money; they just want you to trade.
Looking around the internet I have also seen many "mentors" popping up. who offer to show traders the ropes in exchange for a fee. Although the practice of mentoring has long been established in the markets, paying someone for this kind of service is simply a bad idea; all you have to do is understand their motivation.
When a new trader joins a firm he will pair up with a more experienced trader who will teach him how lo become a great trader. The motivation there is simple: they have a vested interest in seeing their pupils succeed because of the time and money they have invested in them, and the hope is that they make millions for the whole company. Now compare that to mentors offering lo leach you for a lee. What is their motivation? To make their pupils succeed or to simply generate fees? If this mentor/trader is so great, why is he teaching random strangers? The truth is that before ihese guys became popular FX gurus, they were selling miracle brooms on infomercials. In the real world, mentors choose their students, not the other way around.
The best mentors you can possibly find are friends or acquaintances whom you know to be good traders, since they have verifiable results and their motivation is clear.
According to the CFTC. the amount of FX scams has skyrocketed in the last few years. This is a direct result of the increase in popularity of forex trading and the lax oversight by government agencies. A quick web search is enough to show the full range of forex scams out there, some promising 1000% return with no risk! Before entering into any investment scheme, every investor should regularly check the CFTC's website and also make a point to regularly check www.futuresbuzz.com for the latest industry news and FX scams.
Therefore, if looking for a second opinion, who do you trust? There are many great analysts and third-party services out there; you jusi have to make sure you pick the right ones. A whole community of professional technicians, economists, and analysts exists to service the institutional trading industry, providing innovative trading ideas or market advice. The difference is that they make their money through their calls (reputation) not through your trading (by getting referral money from the broker). I have personally used several subscription services in the past, with varying results, but have noticed that good services have a few things in common:
• First, they are not cheap. As the saying goes, you get what you pay for,
• Second, they have a track record. Not just a cool website.
• Third, they have real-world FX trading experience. They can be ex-prop traders, dealers, treasurers, etc. Basically they know how the real FX world works, ami lake into account the manipulation, aberrations, and "irrationality" that sometimes prevails in these markets.
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