Do you want to know why it seems like everyone and their brother is recommending you use forex trading software?
Well, it isn’t because it is really the most profitable way to trade forex or the best way to get started trading forex. It is because internet marketers know that forex is a lucrative niche and the best sales commissions uk forex trading within this profitable niche come from selling forex software. It is often being promoted by people who have never actually used it and certainly fall short of having actually made money with it.
How’s that for the flat out truth? I like to be as direct as possible.
Let me first fill you in on why you should NOT be using forex trading software and then I’ll tell you the best ways to learn how to make really good money with forex.
First, forex trading software is only as good as the programming that goes into it and frankly some of the popular forex software packages out there just aren’t very well programmed. However, even the best programmed packages fall short and here’s why. They rely on “backtesting” which means they run the program using historical data to determine how well it works. The problem with this is that the foreign exchange is a highly volatile market and it changes rapidly. It turns out that backtesting is not a good predictor of future success in forex.
Second, forex trading software is only designed with one or a few trading strategies. The most successful forex traders employ many different strategies as conditions in the market change plus they continually tweak and fine tune all of their strategies. Even with frequent software updates, the software just can’t keep up with this and always lags behind the best traders in performance (and that’s best case scenario).
Third, forex trading software is frankly TERRIBLE at performing during a news event that rocks the market and sends it in directions that could not have been predicted. Live human traders that have dealt with these sorts of conditions many times before are the only ones that seem to be able to handle these market conditions, and in fact, they often profit handsomely from them when so many other traders flounder – especially those using automated software.
So, I suggest to stay away from forex trading software. It’s an idea that sounds much better than it really is when you actually try to apply it to real world situations.
The very best way to learn how to make really good money trading forex is to hire an exceptionally good forex trader to coach you. HOWEVER, this is extraordinarily expensive – it costs literally tens of thousands for the best of the best to give you enough one on one time for you to get really good at forex.
So, for the vast majority of people, I recommend the next best thing which is almost as good and costs FAR less.
What you want to find is an exceptionally good forex signal service that bundles in educational opportunities into the service. You want signals from trusted well-respected forex traders who have been trading for literally years (decades even). You want the signals delivered in REAL TIME so that you can copy them trade for trade. You also want immediate feedback in the form of articles, seminars, forums, etc so you can study WHY they are making the trading decisions they are making as they are making them and as you are trading them yourself. You need to be able to ask questions directly to the traders as well as interact with other traders who use the same signals. You want a service that is as dedicated to providing this education as they in sending you profitable signals on a consistent basis.
Trading signals side by side with a highly successful experienced trader allows you to develop a “feel” for the market that you’d never learn from just reading about it. You learn how to deal with the psychological aspects of forex trading by trading live and you learn precisely when to switch strategies. AND… perhaps the biggest advantage to this is you actually make money while you learn!
I also personally like signal services that also offer auto trading of the signals sent (with some safeguards in place) as I like to use the signal service to make extra money even when I’m not glued to the computer.