A Forex Holy Grail: Does it Exist?

Filed under: Learn Forex Trading |

 

A big question among beginners to forex trading is whether or not a holy grail to forex trading exists or not? Beginners seem to spend countless hours looking for that elusive system that just works and will lead them to untold riches. I myself have had such eureka moments many times, only to later discover that my celebrations were premature. One of the main problems when trying to assess whether it is possible to create a profitable mechanical system or not is that the online marketplace is saturated with systems that don’t work – but they are marketed in a way that seems very convincing. A general rule of thumb for this would be, if it seems too good to be true, then it probably is; so keep well away or at the very least do your due diligence with extensive and rigorous testing on a demo account.

 

Even with systems that do work, once they hit the marketplace and people start using them in their thousands, they are likely to start to lose whatever edge they had in the first place as vast amounts of money will start to move the market.

 

If you are going to follow somebody else’s system, then the best way to go is probably a subscription service that doesn’t give away it’s secrets and has a cap on the number of subscribers that it takes on. Again though, you must do your due diligence and check that their published results correlate with your own.

 

All in all, I do believe that there are workable mechanical forex trading systems out there. However, they are few and far between, and there are many more out there that will lose you money than make you money. If you use somebody else’s system, then do your due diligence, and if you are planning to make a system of your own, then just make sure that you test, test, and test some more before you take it live. This will save you money, so that you will have more trading capital to trade with once you do find a system that works.

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