Third-Party Services

The retail FX market's rise in popularity has created a whole new side-industry focused on providing a range of services geared toward the rctail trader. Hundreds of companies now offer clients great money-making trading signals or programs

To ensure that you are gell ing 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
Beal the Fore1l: Dealer
mentoring has long been established in the markets, paying someone for this kind
of service is simply a bad ide..: 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 to become a great trader. The motivation there is simple:
they have a vested interest in seeing their pupils succeed because of the lime and money they have invested in them, and the hope is that they make millions for the whole company. Now compare that to menLOrs offering (0 leach you for a fee. 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 these 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 Lraders, since they have verifiable results and their motivation is clear.
SCAMS
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 CFTe's website and also make a point to regularly check www.futuresbuzz,eom
for the latest industry news and FX scams.
THE GOOD GUYS
Therefore, if look.jng for a second oplllion. who do you trust? There are many great analysts and third-party services out there; you just have to make sure you pick the right ones. A whole community of professional technicians, economists, and analysts exists to service the institutionallrading industry. providing innovative trading ideas or market advice. The difference is that Lhey make their mOlley 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 lraders. dealers, Ireasurers. etc. Basically lhey know how the real FX world

Third-Party Services
works. and lake into accou nt the manipulation, aberrations, and "irrational¬ity" thai sometimes prevails in these markets.
•Fourth, there is a time and money~management aspect to their analysis. It is useless to tell the average trader that the euro will drop to 1.20 if first they have to go through 300 pip gyrations and wait for three months. Opportunity cost is a real cost for most traders with limited liquidity. The last thing you want to do is have your equity locked in a trade that is not moving while bypassing other (maybe betler) trading opportunities.
The bOllom line is thaI every grem trader has paid their "tuition" to the market, usually in the way of years and thousands of dollars. Don't expecl much from a $19.99 system. Success is the direct product of hard work and determination. and you have to learn to trust your own analysis and trading ski lls. Remember that self-confidence is a hallmark of all greal traders.
RULE 1. Never take the advice of someone who is not willing to put money behind their so-called analysis. If they are not willing to take a hit, then what is their downside to making a prediction?
RULE 2, Never listen to anyone "talking their book", Most jokers on chat forums are sitting on positions deep underwater and are desperate to get out. Any advice Ihey can possibly give you is losing advice and shou ld be used as a contrarian indicator if" anything, Even the big names routinely talk their book. When Bill Gross of PIMeD (biggest bond trader in the world) appears on CNBC give his views on the market. do you really think he is going to say something thai goes against his positions?