Benefits of Using a Forex Signals Provider
The Forex market can be intimidating and confusing if you are a beginner. Experts and gurus have spent years acquiring experience and knowledge by making expensive mistakes. If you are venturing into forex for the first time, it's almost a guarantee that you will lose money. You may lack the knowledge and skills to make profitable trades.
To overcome the challenges ahead, have two options. The first option is to learn everything on your own. However, as mentioned earlier, be prepared to lose money to pick up the lessons. Also, the learning curve is rather steep. The complex and sophisticated analysis methods can put the most intelligent people off. Not everyone wants to get involved in research and analysis. For sure, it's more fun to be trading and making money in real time.
The second option, is to use a forex signals provider. A forex signals provider is a service provider. To use the service, you will have to join as a member and pay subscription fees. But many service providers claim that the fees are very affordable. That may be true, assuming that you make lots of profits based on the signals that are provided by the service provider.
There are a few special benefits that deserve special mention.
1) Ability to move around while waiting for signal instructions.
You don't have to be hooked to your computer when using a signal service provider. Signal instructions can now be emailed or SMS to you. That means you can be receiving instructions even when you are on the move. You may then execute the trade based on the instructions you receive.
2) Shorten the learning curve.
This is a huge benefit. Instead of spending all your time learning how the forex market works, you can start trading immediately. You can skip right past the complex analysis stage and get involved in the action.
3) Minimize trading risk.
For all new traders, all trades are considered risky due to lack of knowledge and skills. If you don't wish to lose money upfront, then you have to depend on a forex signal provider for reliable instructions. All the decisions are made for you by the service provider - when to buy, when to sell, and what is the stop and loss entry.
4) No need to monitor trades manually.
Sometimes, forex traders get up in the middle of the night just to trade an order. With the instructions given, you don't have to do that anymore. Simply execute the order based on the instructions.
To start trading in the forex market, all you need is an Internet connection, a little money (to start trading), and a forex signals membership. The membership will provide you with signal instructions. You wait for the instructions to arrive, and you execute the order. Once you have done that, all you need to do is to wait for the trade to become profitable.
Before you start investing with real money, you can trade based on the instructions you receive on a hypothetical basis. Once you acquire enough confidence, you may then start trading with real money.
Accept Losses in Forex Trading
Accept Losses in Forex Trading
The lack of a proper trading plan which includes precise rules for entering and
exiting a trade will most certainly guarantee failure over the long term. Beginners
usually suffer from the same common ailments. They abandon trading plans purely on
impulse because things are not going exactly as how they had envisioned. Repeatedly
they use unreliable methods that fail to produce a profit. Many traders hold on to
losing positions telling themselves “it is going to turn” when every indicator says
otherwise because they cannot bear the thought of a loss.
Why do they torture
themselves? Why don’t they just identify what’s going wrong and make a change? For
some people recognizing that a trade or even a trading method is not working and
making a change is easy, but for others it’s very difficult. They have to look at
their limitations admit that they have made a mistake and that’s hard because it
hurts our ego. Psychologically it’s risky, it’s often easier to fool ourselves.
Just keep going, living in a state of denial until your account is depleted. If you
recognize any of these traits in yourself you must stop trading immediately.
Take
a good look at what has been happening, try and identify the problem. If you look
close enough you may see a pattern. This is why it is vital to record every trade
and as much information about it as possible. You have to break out of old patterns
and see things in a new light.
You will never be a successful trader if you
continue to live in a state of denial. What can be done to return to reality? There
is a lot you can do. First of all make sure you are not trading under stress. When
stressed out you can’t see clearly, you become rigid and unable to see alternative
views. One of the easiest solutions is to trade smaller. The smaller the trade the
less the stress, especially for the beginner. If you are experienced and in a
loosing streak reduce your contracts until you get your confidence returns. Some
people need to take a break altogether. Get away from it all. Take your mind off
the trading.
The second thing you can do is to make sure you have a life. Trading
can be addictive especially when you are winning. Do not put all your emotional
eggs in the trading basket. You need to have other roles that give your life
meaning and purpose. By defining your identity in a variety of ways, you will not
place un-natural importance on trading events. Therefore, you will be able to take
losses in stride and look at your trading more objectively.
Finally, radical
acceptance is a key mental strategy for coping with market uncertainty. Many
traders make the mistake of thinking they can control the markets. Nobody can
control the markets. We must learn to accept anything that comes our way and to
trade accordingly. Adopt the attitude that trading is a journey and that all we can
do is go where the markets take us.
To succeed on this journey you cannot afford
to lose too much. Manage risk and just accept what you get and enjoy the ride. This
way you will trade more freely and creatively. Don’t live your life in denial.
Accept your limitations, work around them, and become a winning trader. Write out
your trading plan with precise entry and exit points. Most important set your stops
and mentally decide you will not break them. Test your system on paper and when
confident test in real time with the minimum contract size. You will have losing
trades, accept them with grace and go on to the next trade.
The lack of a proper trading plan which includes precise rules for entering and
exiting a trade will most certainly guarantee failure over the long term. Beginners
usually suffer from the same common ailments. They abandon trading plans purely on
impulse because things are not going exactly as how they had envisioned. Repeatedly
they use unreliable methods that fail to produce a profit. Many traders hold on to
losing positions telling themselves “it is going to turn” when every indicator says
otherwise because they cannot bear the thought of a loss.
Why do they torture
themselves? Why don’t they just identify what’s going wrong and make a change? For
some people recognizing that a trade or even a trading method is not working and
making a change is easy, but for others it’s very difficult. They have to look at
their limitations admit that they have made a mistake and that’s hard because it
hurts our ego. Psychologically it’s risky, it’s often easier to fool ourselves.
Just keep going, living in a state of denial until your account is depleted. If you
recognize any of these traits in yourself you must stop trading immediately.
Take
a good look at what has been happening, try and identify the problem. If you look
close enough you may see a pattern. This is why it is vital to record every trade
and as much information about it as possible. You have to break out of old patterns
and see things in a new light.
You will never be a successful trader if you
continue to live in a state of denial. What can be done to return to reality? There
is a lot you can do. First of all make sure you are not trading under stress. When
stressed out you can’t see clearly, you become rigid and unable to see alternative
views. One of the easiest solutions is to trade smaller. The smaller the trade the
less the stress, especially for the beginner. If you are experienced and in a
loosing streak reduce your contracts until you get your confidence returns. Some
people need to take a break altogether. Get away from it all. Take your mind off
the trading.
The second thing you can do is to make sure you have a life. Trading
can be addictive especially when you are winning. Do not put all your emotional
eggs in the trading basket. You need to have other roles that give your life
meaning and purpose. By defining your identity in a variety of ways, you will not
place un-natural importance on trading events. Therefore, you will be able to take
losses in stride and look at your trading more objectively.
Finally, radical
acceptance is a key mental strategy for coping with market uncertainty. Many
traders make the mistake of thinking they can control the markets. Nobody can
control the markets. We must learn to accept anything that comes our way and to
trade accordingly. Adopt the attitude that trading is a journey and that all we can
do is go where the markets take us.
To succeed on this journey you cannot afford
to lose too much. Manage risk and just accept what you get and enjoy the ride. This
way you will trade more freely and creatively. Don’t live your life in denial.
Accept your limitations, work around them, and become a winning trader. Write out
your trading plan with precise entry and exit points. Most important set your stops
and mentally decide you will not break them. Test your system on paper and when
confident test in real time with the minimum contract size. You will have losing
trades, accept them with grace and go on to the next trade.
Essential Elements of a Successful Trader
Essential Elements of a Successful Trader
Courage Under Stressful Conditions When the Outcome is Uncertain
All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. As with the lottery “You gotta be in it to win it”. Trust me when I say that the simple task of hitting the buy or sell key is extremely difficult to do when your own real money is put at risk.
You will feel anxiety, even fear. Here lies the moment of truth. Do you have the courage to be afraid and act anyway? When a fireman runs into a burning building I assume he is afraid but he does it anyway and achieves the desired result. Unless you can overcome or accept your fear and do it anyway, you will not be a successful trader.
However, once you learn to control your fear, it gets easier and easier and in time there is no fear. The opposite reaction can become an issue – you’re overconfident and not focused enough on the risk you're taking.
Both the inability to initiate a trade, or close a losing trade can create serious psychological issues for a trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first real trade and develop good trading habits from day one.
Start by analyzing yourself. Are you the type of person that can control their emotions and flawlessly execute trades, oftentimes under extremely stressful conditions? Are you the type of person who’s overconfident and prone to take more risk than they should? Before your first real trade you need to look inside yourself and get the answers. We can correct any deficiencies before they result in paralysis (not pulling the trigger) or a huge loss (overconfidence). A huge loss can prematurely end your trading career, or prolong your success until you can raise additional capital.
The difficulty doesn’t end with “pulling the trigger”. In fact what comes next is equally or perhaps more difficult. Once you are in the trade the next hurdle is staying in the trade. When trading foreign exchange you exit the trade as soon as possible after entry when it is not working. Most people who have been successful in non-trading ventures find this concept difficult to implement.
For example, real estate tycoons make their fortune riding out the bad times and selling during the boom periods. The problem with trying to adapt a 'hold on until it comes back' strategy in foreign exchange is that most of the time the currencies are in long-term persistent, directional trends and your equity will be wiped out before the currency comes back.
The other side of the coin is staying in a trade that is working. The most common pitfall is closing out a winning position without a valid reason. Once again, fear is the culprit. Your subconscious demons will be scaring you non-stop with questions like “what if news comes out and you wind up with a loss”. The reality is if news comes out in a currency that is going up, the news has a higher probability of being positive than negative (more on why that is so in a later article).
So your fear is just a baseless annoyance. Don’t try and fight the fear. Accept it. Have a laugh about it and then move on to the task at hand, which is determining an exit strategy based on actual price movement. As Garth says in Waynesworld “Live in the now man”. Worrying about what could be is irrational. Studying your chart and determining an objective exit point is reality based and rational.
Another common pitfall is closing a winning position because you are bored with it; its not moving. In Football, after a star running back breaks free for a 50-yard gain, he comes out of the game temporarily for a breather. When he reenters the game he is a serious threat to gain more yards – this is indisputable. So when your position takes a breather after a winning move, the next likely event is further gains – so why close it?
If you can be courageous under fire and strategically patient, foreign exchange trading may be for you. If you’re a natural gunslinger and reckless you will need to tone your act down a notch or two and we can help you make the necessary adjustments. If putting your money at risk makes you a nervous wreck its because you lack the knowledge base to be confident in your decision making.
Patience to Gain Knowledge through Study and Focus
Many new traders believe all you need to profitably trade foreign currencies are charts, technical indicators and a small bankroll. Most of them blow up (lose all their money) within a few weeks or months; some are initially successful and it takes as long as a year before they blow up. A tiny minority with good money management skills, patience, and a market niche go on to be successful traders. Armed with charts, technical indicators, and a small bankroll, the chance of succeeding is probably 500 to 1.
To increase your chances of success to near certainty requires knowledge; acquiring knowledge takes hard work, study, dedication and focus. Compile your knowledge base without taking any shortcuts, thereby assuring a solid foundation to build upon.
Courage Under Stressful Conditions When the Outcome is Uncertain
All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. As with the lottery “You gotta be in it to win it”. Trust me when I say that the simple task of hitting the buy or sell key is extremely difficult to do when your own real money is put at risk.
You will feel anxiety, even fear. Here lies the moment of truth. Do you have the courage to be afraid and act anyway? When a fireman runs into a burning building I assume he is afraid but he does it anyway and achieves the desired result. Unless you can overcome or accept your fear and do it anyway, you will not be a successful trader.
However, once you learn to control your fear, it gets easier and easier and in time there is no fear. The opposite reaction can become an issue – you’re overconfident and not focused enough on the risk you're taking.
Both the inability to initiate a trade, or close a losing trade can create serious psychological issues for a trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first real trade and develop good trading habits from day one.
Start by analyzing yourself. Are you the type of person that can control their emotions and flawlessly execute trades, oftentimes under extremely stressful conditions? Are you the type of person who’s overconfident and prone to take more risk than they should? Before your first real trade you need to look inside yourself and get the answers. We can correct any deficiencies before they result in paralysis (not pulling the trigger) or a huge loss (overconfidence). A huge loss can prematurely end your trading career, or prolong your success until you can raise additional capital.
The difficulty doesn’t end with “pulling the trigger”. In fact what comes next is equally or perhaps more difficult. Once you are in the trade the next hurdle is staying in the trade. When trading foreign exchange you exit the trade as soon as possible after entry when it is not working. Most people who have been successful in non-trading ventures find this concept difficult to implement.
For example, real estate tycoons make their fortune riding out the bad times and selling during the boom periods. The problem with trying to adapt a 'hold on until it comes back' strategy in foreign exchange is that most of the time the currencies are in long-term persistent, directional trends and your equity will be wiped out before the currency comes back.
The other side of the coin is staying in a trade that is working. The most common pitfall is closing out a winning position without a valid reason. Once again, fear is the culprit. Your subconscious demons will be scaring you non-stop with questions like “what if news comes out and you wind up with a loss”. The reality is if news comes out in a currency that is going up, the news has a higher probability of being positive than negative (more on why that is so in a later article).
So your fear is just a baseless annoyance. Don’t try and fight the fear. Accept it. Have a laugh about it and then move on to the task at hand, which is determining an exit strategy based on actual price movement. As Garth says in Waynesworld “Live in the now man”. Worrying about what could be is irrational. Studying your chart and determining an objective exit point is reality based and rational.
Another common pitfall is closing a winning position because you are bored with it; its not moving. In Football, after a star running back breaks free for a 50-yard gain, he comes out of the game temporarily for a breather. When he reenters the game he is a serious threat to gain more yards – this is indisputable. So when your position takes a breather after a winning move, the next likely event is further gains – so why close it?
If you can be courageous under fire and strategically patient, foreign exchange trading may be for you. If you’re a natural gunslinger and reckless you will need to tone your act down a notch or two and we can help you make the necessary adjustments. If putting your money at risk makes you a nervous wreck its because you lack the knowledge base to be confident in your decision making.
Patience to Gain Knowledge through Study and Focus
Many new traders believe all you need to profitably trade foreign currencies are charts, technical indicators and a small bankroll. Most of them blow up (lose all their money) within a few weeks or months; some are initially successful and it takes as long as a year before they blow up. A tiny minority with good money management skills, patience, and a market niche go on to be successful traders. Armed with charts, technical indicators, and a small bankroll, the chance of succeeding is probably 500 to 1.
To increase your chances of success to near certainty requires knowledge; acquiring knowledge takes hard work, study, dedication and focus. Compile your knowledge base without taking any shortcuts, thereby assuring a solid foundation to build upon.
Forex Trading Strategies And Systems
I've been trading the forex markets for several years now so I've developed quite a few different systems in my time. However there are some that are more profitable than others, so let me share you with you some of my most profitable forex trading strategies.
4 Hour Trading Strategy
I created this trading strategy myself and have been using it for several years now. This one system has generated more profits that any other system I have ever used, and yet it's surprisingly simple.
I simply look at the daily trend for a particular currency pair (usually the GBP/USD, EUR/USD or USD/JPY pair) using a very simple but effective technical indicator, then I wait for two EMAs (exponential moving averages) to cross over in the same direction on the 4 hour chart.
I will then enter a position (usually after a slight pull-back) and will employ a two-part exit strategy to maximise my profits. One half of the position will be closed out early for a safe profit, and the other half will be left to run for as long as possible in order to capture those really big price moves.
As I say, this particular forex trading strategy is highly effective, as regular readers of my blog will know because I share my trading results every week in my 'Weekly Trading Updates'.
Anyway if you would like to read all about my 4 hour trading method, you can access it (for free) by filling in the short form to the right and subscribing to my newsletter.
The only problem with trading this strategy is that there will always be quiet periods and particular days where you know you are not going to get any set-ups on any of the major currency pairs. Therefore at times like these I will often employ some of the other trading methods that I keep in reserve:
CCI Divergence Trading System
This is a forex system that I've recently created and it basically uses the popular CCI indicator with two different settings. The key here is to wait until there is divergence between both of the CCI indicators at the same time because this will give you a set-up with a very high success rate.
You don't get that many good set-ups per day using this trading strategy, but when you do, you are likely to make some decent profits because it is a very high probability set-up.
I have discussed this particular strategy elsewhere on this blog so please click here if you want to find out more about this CCI Divergence Trading System.
Forex Income Engine 2.0 Methods
At the time of writing (20 June 2009) I've just started using the three day trading methods included in the Forex Income Engine 2.0 course as well. I've always been quite sceptical about many of the short-term forex methods that I come across, but I've been very impressed with these three methods so far because they do actually produce some very good returns.
Anyway if you would like more details about each of these methods you can read all about them on my Forex Income Engine 2.0 review page.
Forex Nitty Gritty Method
This trading method was included in the Forex Nitty Gritty course and although it is a very basic method, it is actually surprisingly effective. The goal is to look for pairs that are in strong upward or downward trends, wait for a pull-back, and then enter a trade if the trend continues.
I've been using this method on the 15 minute charts for quite a while now and it has always performed well for me because these continuation trends occur all the time.
Again if you would like to find out more about this particular trading method, you may like to read my full review of Forex Nitty Gritty.
Long-Term Trading Strategy
I'm not really a long-term trader but I do occasionally open a position if a good trading opportunity arises. I will usually use the daily charts for these trades and will look at a variety of indicators such as the 200 day moving average, the supertrend indicator, established support and resistance levels, fibonacci levels if applicable, and Marketclub's excellent trading signals.
I will regularly post my long-term analysis of the various currency pairs on this blog, but I will only follow this up with an actual trade if I'm really confident about my predictions.
Other Forex Trading Strategies
Finally as well as all of the trading systems and strategies listed on this page, I also have a few breakout strategies that I like to use when a good opportunity presents itself. I'm also constantly testing out new ideas and reviewing the various trading systems that I get sent regularly by product owners who want me to promote their product.
However for the most part it's my 4 hour trading strategy that I spend most time on because this is my core system which generates the most consistent and reliable profits. All of the other forex trading systems are used to boost my trading pot during the quieter periods of the week.
I've been trading the forex markets for several years now so I've developed quite a few different systems in my time. However there are some that are more profitable than others, so let me share you with you some of my most profitable forex trading strategies.
4 Hour Trading Strategy
I created this trading strategy myself and have been using it for several years now. This one system has generated more profits that any other system I have ever used, and yet it's surprisingly simple.
I simply look at the daily trend for a particular currency pair (usually the GBP/USD, EUR/USD or USD/JPY pair) using a very simple but effective technical indicator, then I wait for two EMAs (exponential moving averages) to cross over in the same direction on the 4 hour chart.
I will then enter a position (usually after a slight pull-back) and will employ a two-part exit strategy to maximise my profits. One half of the position will be closed out early for a safe profit, and the other half will be left to run for as long as possible in order to capture those really big price moves.
As I say, this particular forex trading strategy is highly effective, as regular readers of my blog will know because I share my trading results every week in my 'Weekly Trading Updates'.
Anyway if you would like to read all about my 4 hour trading method, you can access it (for free) by filling in the short form to the right and subscribing to my newsletter.
The only problem with trading this strategy is that there will always be quiet periods and particular days where you know you are not going to get any set-ups on any of the major currency pairs. Therefore at times like these I will often employ some of the other trading methods that I keep in reserve:
CCI Divergence Trading System
This is a forex system that I've recently created and it basically uses the popular CCI indicator with two different settings. The key here is to wait until there is divergence between both of the CCI indicators at the same time because this will give you a set-up with a very high success rate.
You don't get that many good set-ups per day using this trading strategy, but when you do, you are likely to make some decent profits because it is a very high probability set-up.
I have discussed this particular strategy elsewhere on this blog so please click here if you want to find out more about this CCI Divergence Trading System.
Forex Income Engine 2.0 Methods
At the time of writing (20 June 2009) I've just started using the three day trading methods included in the Forex Income Engine 2.0 course as well. I've always been quite sceptical about many of the short-term forex methods that I come across, but I've been very impressed with these three methods so far because they do actually produce some very good returns.
Anyway if you would like more details about each of these methods you can read all about them on my Forex Income Engine 2.0 review page.
Forex Nitty Gritty Method
This trading method was included in the Forex Nitty Gritty course and although it is a very basic method, it is actually surprisingly effective. The goal is to look for pairs that are in strong upward or downward trends, wait for a pull-back, and then enter a trade if the trend continues.
I've been using this method on the 15 minute charts for quite a while now and it has always performed well for me because these continuation trends occur all the time.
Again if you would like to find out more about this particular trading method, you may like to read my full review of Forex Nitty Gritty.
Long-Term Trading Strategy
I'm not really a long-term trader but I do occasionally open a position if a good trading opportunity arises. I will usually use the daily charts for these trades and will look at a variety of indicators such as the 200 day moving average, the supertrend indicator, established support and resistance levels, fibonacci levels if applicable, and Marketclub's excellent trading signals.
I will regularly post my long-term analysis of the various currency pairs on this blog, but I will only follow this up with an actual trade if I'm really confident about my predictions.
Other Forex Trading Strategies
Finally as well as all of the trading systems and strategies listed on this page, I also have a few breakout strategies that I like to use when a good opportunity presents itself. I'm also constantly testing out new ideas and reviewing the various trading systems that I get sent regularly by product owners who want me to promote their product.
However for the most part it's my 4 hour trading strategy that I spend most time on because this is my core system which generates the most consistent and reliable profits. All of the other forex trading systems are used to boost my trading pot during the quieter periods of the week.
Best Forex Trading Signals
Best Forex Trading Signals
There are very few forex trading signals providers that are genuinely consistently profitable month after month. There are many that claim to be and have impressive looking performance records but very often it transpires that they massage their numbers, and use hypothetical figures in their calculations, rather than trade their signals themselves.
I've come across many different forex signals providers in my time. It's hard not to as the internet's full of them. Nearly all of them have turned out to be a waste of time. I thought I'd found a great site a while back in the shape of Forex Live Pro, but after having several highly profitable months, even they ended up going on a losing streak and have since closed down.
That's why there's only one company that I'm more than happy to recommend and that's ZuluTrade.
ZuluTrade is basically an extensive database consisting of some of the best forex traders from around the world. You can trade any of the signals that these traders provide automatically in your ZuluTrade account. All you do is open an account, deposit some cash, and choose which traders' signals you wish to trade (based on their past performance record). Then whenever the signals are provided by your chosen provider(s), the same positions are opened and closed automatically on your behalf in your account.
It's basically a managed forex trading account where you're in complete control over which signal providers you use, and all trading is completely automated.
There are very few forex trading signals providers that are genuinely consistently profitable month after month. There are many that claim to be and have impressive looking performance records but very often it transpires that they massage their numbers, and use hypothetical figures in their calculations, rather than trade their signals themselves.
I've come across many different forex signals providers in my time. It's hard not to as the internet's full of them. Nearly all of them have turned out to be a waste of time. I thought I'd found a great site a while back in the shape of Forex Live Pro, but after having several highly profitable months, even they ended up going on a losing streak and have since closed down.
That's why there's only one company that I'm more than happy to recommend and that's ZuluTrade.
ZuluTrade is basically an extensive database consisting of some of the best forex traders from around the world. You can trade any of the signals that these traders provide automatically in your ZuluTrade account. All you do is open an account, deposit some cash, and choose which traders' signals you wish to trade (based on their past performance record). Then whenever the signals are provided by your chosen provider(s), the same positions are opened and closed automatically on your behalf in your account.
It's basically a managed forex trading account where you're in complete control over which signal providers you use, and all trading is completely automated.
Forex Income Engine 2.0 Review
Forex Income Engine 2.0 is a day trading course from Bill Poulos that provides you with 3 separate intraday trading methods. These methods can be used in any time frame so are therefore ideal for day traders, or people who only have a limited amount of time to trade every day.
I was lucky enough to receive a review copy of the Forex Income Engine 2.0 course prior to it's official launch so let me give you my full review of this product:
The course itself is a physical product that is delivered directly to your door. It consists of 7 CD-ROMs, full colour reference manuals in a 3-ring binder, trading blueprints that summarise each of the 3 trading methods and a quick start guide to get you up and running.
The 7 CD-ROMs are as follows:
- Bonus Module - Forex And Trading Basics (51 minutes)
- Module 1 - Background And Overview (39 minutes)
- Module 2 - Ignition Method (98 minutes)
- Module 3 - Overdrive Method (62 minutes)
- Module 4 - Spring Method (67 minutes)
- Module 5 - Forex Brokers, Charting Software And Trading Platforms (85 minutes)
- Module 6 - Bringing It All Together (46 minutes)
Trading Method 1 - Ignition Method
The Ignition Method is a simple trading method that targets short-term continuation trends. Trades typically last between 2 and 6 bars and the profit objective can be anywhere between 10 and 50 pips, depending on the time frame you are trading and the set-up conditions of the trade.
This method, just like the two methods below, employs a two-part exit strategy which helps you to maximise your profits, whilst using a strict stop loss policy to minimize your losses.
Trading Method 2 - Overdrive Method
The Overdrive Method is my favourite method because it's gets you into a trade near the beginning of some of the strongest trends that occur throughout the day. Profit objectives are in the region of 25-100 pips (depending on which time frame you use) and I have to say that most of the time these objectives are fulfilled.
I've been testing this method out on various time frames from 5 minutes up to 30 minutes and my overall success rate is extremely high, particularly on the 15 minute and 30 minute charts where the trends are a lot stronger.
Trading Method 3 - Spring Method
The final method included in the Forex Income Engine 2.0 course is the Spring Method. This method looks for trend reversals and typical profit targets are again between 25 and 100 pips.
The problem with this method is that you don't tend to get as many set-ups as the previous two methods. However from the limited amount of back-testing I've done on this method, it does nevertheless appear to generate some decent profits when set-ups do occur.
I don't personally think I will be using this method as much as the previous two methods, but it's certainly a set-up that you need to keep your eye on because as Bill points out in his course, when a Spring Method trend reversal is in progress, you obviously don't want to be trading either of the other trend-following methods because they will usually fail.
As I've already said, these specific reversal patterns do not occur that often so most of the time you can concentrate on trading the Ignition Method and the Overdrive Method, which is what I've been doing.
Additional Modules
One thing I like about the Forex Income Engine 2.0 course is that as well as the 3 profitable trading methods, there are also modules covering risk management and discipline, which are two crucial elements of successful forex trading. Plus if you are a relatively inexperienced trader, there is also a bonus module that will teach you everything you need to know about forex trading. So this course really does cater for all traders, regardless of their experience.
Learning The Methods
The methods themselves are relatively straight forward. They all use the same 4 technical indicators and these indicators are commonly found in any charting platform.
Each method is explained in great detail and is demonstrated numerous times using lots of different examples of live trades. However I personally had to watch each video about four or five times before I became fully familiar with the intricacies of each method. It's the little things like learning where to place your stops, and where to move your stops as trades move in your favour that take the most time to learn.
If you do buy the course, however, you do have an advantage because you are given trading blueprints of each individual method which you can keep next to your computer for easy reference. (I didn't have this luxury when I received a review copy of this course which is probably why it took longer to learn each method).
How Profitable Are The Forex Income Engine Methods?
I've now had time to test out all of the methods and overall the success rate seems to be very high for each of the methods, and best of all they do genuinely seem to be profitable on all the intraday time frames (although I find the 15 minute time frame to be the most profitable).
It's obvious to me that each of these methods has been tested over and over again because the stop losses and exit points have clearly been designed to extract maximum profits from each and every trade.
In my experience the Overdrive Method is the one with the highest success rate and is easily my favourite method of the three. I've been trading this method on the 15 minute charts of the GBP/USD, EUR/USD and USD/JPY pairs and I've been experiencing a winning ratio of over 90% in the last week or so. After a while you get to know which set-ups are most likely to be profitable so it almost becomes second nature.
The Ignition Method isn't quite as reliable, particularly on the shorter time frames, but nevertheless it can still boast a success rate of around 60% in my experience, and even higher if you use the 15 minute chart or above. Therefore it's still very profitable because you have to remember that the profitable trades will more than compensate for any losses that you may incur because of the two part exit strategy that is employed. Therefore this method still has the potential to increase your account in the long run and I will certainly be continuing to use it on the 15 minute charts.
The Spring Method also appears to be profitable but I haven't tested it out that much to be honest. You wouldn't want to be trading this method in isolation because there are very few set-ups that meet the criteria, but to be fair the price does seem to reverse nicely, and therefore generate some decent returns, on the rare occasions when these conditions are met.
Final Comments On The Forex Income Engine 2.0 Course
I've always been slightly critical about day trading because I've never found any trading methods that have been able to generate consistent returns on these shorter time frames. However I have to say that Forex Income Engine 2.0 is easily the best day trading course I've ever come across because the methods themselves, particularly the Overdrive and Ignition Methods, are actually profitable.
What I like about these systems is there is a clear logic behind them. Any losses you incur are kept small whilst the winning trades employ a two part exit strategy, just like I do with my 4 hour trading strategy, in that half the position is closed for a small profit, and the second half of the position is left to run until it's conclusion, and essentially becomes a free position because you will have moved the stop loss up to break-even by this point.
Another reason why I'm a big fan of this course is that the methods themselves can be used throughout the day if you so wish because they trade a variety of different trading conditions. For example you can use the Overdrive Method to get you into a trade at the start of any strong trends, then you can use the Ignition Method to trade any continuation trends that may occur after a brief pull-back. Finally if the right conditions are met you can then use the Spring Method to trade any trend reversals.
So overall I can highly recommend the Forex Income Engine 2.0 course. It's not cheap by any means but I think that in this case the price really does reflect the quality of the product. You are paying for 3 profitable day trading methods that you can use for the rest of your life, so in the long run it could easily turn out to be a fantastic investment.
If you're not entirely satisfied with the product you can always return it within 90 days and receive a full refund, but if you take the time to go through all of the materials and learn each of the methods, I really don't think you will want to return the product.
Anyway I think I'm ready to wrap up this review now. I didn't intend it to be this long but I really am very enthusiastic about this course and wanted to get across all of the main points.
I was lucky enough to receive a review copy of the Forex Income Engine 2.0 course prior to it's official launch so let me give you my full review of this product:
The course itself is a physical product that is delivered directly to your door. It consists of 7 CD-ROMs, full colour reference manuals in a 3-ring binder, trading blueprints that summarise each of the 3 trading methods and a quick start guide to get you up and running.
The 7 CD-ROMs are as follows:
- Bonus Module - Forex And Trading Basics (51 minutes)
- Module 1 - Background And Overview (39 minutes)
- Module 2 - Ignition Method (98 minutes)
- Module 3 - Overdrive Method (62 minutes)
- Module 4 - Spring Method (67 minutes)
- Module 5 - Forex Brokers, Charting Software And Trading Platforms (85 minutes)
- Module 6 - Bringing It All Together (46 minutes)
Trading Method 1 - Ignition Method
The Ignition Method is a simple trading method that targets short-term continuation trends. Trades typically last between 2 and 6 bars and the profit objective can be anywhere between 10 and 50 pips, depending on the time frame you are trading and the set-up conditions of the trade.
This method, just like the two methods below, employs a two-part exit strategy which helps you to maximise your profits, whilst using a strict stop loss policy to minimize your losses.
Trading Method 2 - Overdrive Method
The Overdrive Method is my favourite method because it's gets you into a trade near the beginning of some of the strongest trends that occur throughout the day. Profit objectives are in the region of 25-100 pips (depending on which time frame you use) and I have to say that most of the time these objectives are fulfilled.
I've been testing this method out on various time frames from 5 minutes up to 30 minutes and my overall success rate is extremely high, particularly on the 15 minute and 30 minute charts where the trends are a lot stronger.
Trading Method 3 - Spring Method
The final method included in the Forex Income Engine 2.0 course is the Spring Method. This method looks for trend reversals and typical profit targets are again between 25 and 100 pips.
The problem with this method is that you don't tend to get as many set-ups as the previous two methods. However from the limited amount of back-testing I've done on this method, it does nevertheless appear to generate some decent profits when set-ups do occur.
I don't personally think I will be using this method as much as the previous two methods, but it's certainly a set-up that you need to keep your eye on because as Bill points out in his course, when a Spring Method trend reversal is in progress, you obviously don't want to be trading either of the other trend-following methods because they will usually fail.
As I've already said, these specific reversal patterns do not occur that often so most of the time you can concentrate on trading the Ignition Method and the Overdrive Method, which is what I've been doing.
Additional Modules
One thing I like about the Forex Income Engine 2.0 course is that as well as the 3 profitable trading methods, there are also modules covering risk management and discipline, which are two crucial elements of successful forex trading. Plus if you are a relatively inexperienced trader, there is also a bonus module that will teach you everything you need to know about forex trading. So this course really does cater for all traders, regardless of their experience.
Learning The Methods
The methods themselves are relatively straight forward. They all use the same 4 technical indicators and these indicators are commonly found in any charting platform.
Each method is explained in great detail and is demonstrated numerous times using lots of different examples of live trades. However I personally had to watch each video about four or five times before I became fully familiar with the intricacies of each method. It's the little things like learning where to place your stops, and where to move your stops as trades move in your favour that take the most time to learn.
If you do buy the course, however, you do have an advantage because you are given trading blueprints of each individual method which you can keep next to your computer for easy reference. (I didn't have this luxury when I received a review copy of this course which is probably why it took longer to learn each method).
How Profitable Are The Forex Income Engine Methods?
I've now had time to test out all of the methods and overall the success rate seems to be very high for each of the methods, and best of all they do genuinely seem to be profitable on all the intraday time frames (although I find the 15 minute time frame to be the most profitable).
It's obvious to me that each of these methods has been tested over and over again because the stop losses and exit points have clearly been designed to extract maximum profits from each and every trade.
In my experience the Overdrive Method is the one with the highest success rate and is easily my favourite method of the three. I've been trading this method on the 15 minute charts of the GBP/USD, EUR/USD and USD/JPY pairs and I've been experiencing a winning ratio of over 90% in the last week or so. After a while you get to know which set-ups are most likely to be profitable so it almost becomes second nature.
The Ignition Method isn't quite as reliable, particularly on the shorter time frames, but nevertheless it can still boast a success rate of around 60% in my experience, and even higher if you use the 15 minute chart or above. Therefore it's still very profitable because you have to remember that the profitable trades will more than compensate for any losses that you may incur because of the two part exit strategy that is employed. Therefore this method still has the potential to increase your account in the long run and I will certainly be continuing to use it on the 15 minute charts.
The Spring Method also appears to be profitable but I haven't tested it out that much to be honest. You wouldn't want to be trading this method in isolation because there are very few set-ups that meet the criteria, but to be fair the price does seem to reverse nicely, and therefore generate some decent returns, on the rare occasions when these conditions are met.
Final Comments On The Forex Income Engine 2.0 Course
I've always been slightly critical about day trading because I've never found any trading methods that have been able to generate consistent returns on these shorter time frames. However I have to say that Forex Income Engine 2.0 is easily the best day trading course I've ever come across because the methods themselves, particularly the Overdrive and Ignition Methods, are actually profitable.
What I like about these systems is there is a clear logic behind them. Any losses you incur are kept small whilst the winning trades employ a two part exit strategy, just like I do with my 4 hour trading strategy, in that half the position is closed for a small profit, and the second half of the position is left to run until it's conclusion, and essentially becomes a free position because you will have moved the stop loss up to break-even by this point.
Another reason why I'm a big fan of this course is that the methods themselves can be used throughout the day if you so wish because they trade a variety of different trading conditions. For example you can use the Overdrive Method to get you into a trade at the start of any strong trends, then you can use the Ignition Method to trade any continuation trends that may occur after a brief pull-back. Finally if the right conditions are met you can then use the Spring Method to trade any trend reversals.
So overall I can highly recommend the Forex Income Engine 2.0 course. It's not cheap by any means but I think that in this case the price really does reflect the quality of the product. You are paying for 3 profitable day trading methods that you can use for the rest of your life, so in the long run it could easily turn out to be a fantastic investment.
If you're not entirely satisfied with the product you can always return it within 90 days and receive a full refund, but if you take the time to go through all of the materials and learn each of the methods, I really don't think you will want to return the product.
Anyway I think I'm ready to wrap up this review now. I didn't intend it to be this long but I really am very enthusiastic about this course and wanted to get across all of the main points.
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