If you have any experience at all in the currency trading arena, you'll know that automated Forex trading is one of the most popular ways to trade around. That's because it has the ability to help us overcome our human weaknesses and give us a much needed edge in the markets. That said, there are a lot of dishonest people who are taking advantage of the popularity of these automated systems to make a quick buck themselves. In this article, I will help you to weed out the good systems from the bad, so that you can make the right decision moving forward.
Signs Of An Automated Forex Trading System Scam
In my experience, there's nothing that literally screams "scam" like claims of big returns in a short period of time. This dirty trick is so low because it takes advantage of typical newbies' lack of knowledge about the Forex markets. After all, we were all drawn to currency trading by the big returns that we can potentially earn in a short 918kiss trading time frame. However, there's a big difference between the realistic "bigger returns" that can be achieved through high frequency trading in a shorter time frame, and the bogus claims of overnight riches that scam systems put forward.
So, if you hear about "doubling or tripling your money in a matter of weeks" or "raking in a million dollars in a year from just a $1,000 initial deposit", don't believe it for one second that that's even possible because it's not. You have a better shot of winning in the worst odds game at the casino than achieving the returns they claim. So do yourself a favor, and put your trust in automated Forex trading systems that can actually deliver the goods.
How To Recognize A Truly Profitable Automated Forex Trading System
As they say, the best way to recognize a fake is to know exactly what the real deal looks like. To begin with, it's best to keep in mind that we're operating in the real world, and we all know how that works. Money follows smart decision making and consistent applied effort, and returns tend to be modest but they do add up over time. With that in mind, look for trading systems that report a potential profit of 5-10% a month (which is fair supplement par for the course in high frequency trading). Another thing to look for is within the trade history, you'll want to see a good balance of winners and losers. Ideally, the profit in each winning trade should be greater than the losses in each losing trade on average. These are two characteristics of consistently winning automated Forex trading systems.