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Should You Buy A Forex Advisor?

Should You Buy A Forex Advisor? :

Very often you can find on the Internet advertisements about sale of a profitable adviser to the traders. According to the seller, a trader who buys it will increase his deposit by 100% in just a month. As a proof of this, it is usually a nice report of the tester of strategy from MetaTrader.

Often such an adviser is proposed to a trader in a compiled form for MetaTrader without a source code – the so-called “black box”, without being able to somehow influence the sale of the adviser.

The question arises – why sell a profitable advisor? Why does not the seller use it in the trade? The answer is very simple – there is no profitable adviser, there is a swindler, who gives to inexperienced traders nice reports on the testing history of MetaTrader. He makes a profit from the sale of an adviser. Most likely, such a seller has no relation to the traders, and just took any appropriate advisor, make it fit the history, made a nice report in MetaTrader and sells the Grail to the traders who are not able to discern fraud in the seller.

Never buy such advisors! In such cases, you can always buy a test report on the history, not adviser, who will be profitable in the future. On the fact that the adviser is no longer profitable, you always get a reply that, like, the market has changed, and that things change.

Now let’s talk about what the trader makes sense to spend money.

It makes sense for a trader to buy an adviser which work can be watched on a demo account before you buy, but it is better in real life. For the seller it’s enough easy to do – just open an account and start this adviser on it; and you may give an investor password that allows logging into this account in preview mode to anyone who wants to look at its work. Fortunately, MetaTrader has such an opportunity. Any trader, for a sufficiently long testing of adviser, will be able to verify its efficiency and to buy. It seems to me the most honest way to sell advisers. Even if a bought adviser will not bring the promised profit, then it will not be linked to fraud seller (provided that the purchased advisor will perform the same transaction, than advisor of the seller located on a demo account, because he will remain there after the sale to attract other customers). True, the cost of this adviser is not less than $ 10000, and maybe all of $ 100,000. Why so expensive? And is it expensive? See how much a small manufacturing plant costs, and compare this cost with the profits that the plant can produce per year. And what adviser differs from that plant? Buying a ready advisor, the trader gets ready and debugged business that brings profit, but such a business is costly.

As in any other sphere of our life Forex needs some knowledge.

Of course, one can start forex investment and be quite successful in it. However sooner or later the losses will come. It is precisely when you might think “Why did I fail to start with a nice forex trading education?”

This does not imply that after reading even the best materials you will start closing trading positions with huge income, but this knowledge will save you from many troubles. And even if you make up your mind to get the help of a forex managed accounts service, still you will be able to make a much wiser decision.

And a final piece of advice – today the web technologies give you a really unique chance to choose exactly what you require for the best price on the market. Funny, but most of the people don’t use this chance. In real practice it means that you should use all the tools of today to get the info that you need.

Search Google and other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and join the discussion. All this will help you to build up a true vision of this market. Thus, giving you a real chance to make a smart and nicely balanced decision.

P.S. And also sign up to the RSS on this blog, because we will everything possible to keep updating this blog with new publications about Forex market.

November 6, 2010 | In: Investment

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