Forex Free Trading Tips:

5 Easy Tricks on How to Recognize Highly Profitable Trading Systems

By: Marcello Ducille

From: http://thebuildwealthplan.com/

As the years go by more and more people come out with

trading strategies that they describe as the holy grail of

Forex trading. While some of these systems DO work.

When it comes to Forex trading there is no such thing as a

“one size fits all” trading system.

Every trader is different, everyone has different risk

tolerance, capital to invest, and even different goals. In

this trading article I would like to teach you 5 easy ways

for you to filter the real profitable trading systems from the

ones that don’t work.

Profitable backtesting is a must: It has been said that past performance is not an indicative of

future result. However, it has also been proven that history tends to repeat itself this is why

backtesting results are important.

For starters, backtesting results are historical studies that simulate how a trading strategy would

have performed in the past over a specific period of time. It is advisable to at least have access to

a 1 year backtesting report.

Whenever you are evaluating a trading system make sure you take a look at the system’s

backtesting and analyze the strategy deeply. Purchasing a trading strategy shouldn’t be taken

lightly since the system will be trading your money.

A money back guarantee should always be offered: A money back guarantee is a policy or a

promise that I company makes to you to buy back their product from you if you are not satisfied

with the results.

The main advantage of purchasing a trading system that comes with a money back guarantee is

that you can always ask for a refund and you get to test drive their software. The reason why

vendors offer money back guarantees is because they believe their product will meet your needs

and you will want to keep it.

Live results speak louder than a thousand words: Backtesting results are great but live results

will always be more important than any other proof of the effectiveness of the trading strategy.

In addition, you can also look for previous customer testimonials who decided to share their

results or experiences with the product you want to buy. Remember, you always need to ensure

you are getting your money’s worth and that the system you are buying will pay for itself

eventually.

Demo trade any system you buy before putting real money in the line: Demo trading is the

best way to test a trading system without risking any of your hard earned money. Most Forex

brokers allow you to open a demo account so that you can practice and improve your trading

skills without risking your real money. These demo accounts have the same capabilities than a

live account and will provide you with the experience necessary for successful trading.

A profitable system must use strict money management and risk management: Money

management and risk management are the pillars of any profitable trading strategy. Highly

profitable trading systems have the ability to protect your profits while they minimize your

losses.

Whenever you are planning to buy a new trading system make sure to perform proper research

and don’t rush to buy the first trading system you see, shop around and choose the system that

better fits your needs.

To your trading success,

Marcello Ducille

Professional Online Entrepreneur/Senior Forex Trader

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