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Choosing A Forex Third Party Signal Provider
By Tom Kearns
With the growing popularity and easy access to the foreign exchange (ForEx) market, more and more people are drawn to it as their financial vehicle of choice. Along with this popularity come all the extras. This includes all kinds of software, systems for sale, books, videos, and third party signal party providers. Today I’m going to touch on a few points when seeking out a third party forex signal provider.
Before we get into choosing a provider we need to have a good understanding of what a third party signal provider is. A signal provider is a trader or analyst that generates trades that in turn get placed on your account. You can have several signal providers your forex account or just one.
Like anything else, all third party signal providers are not created equal. At first glance a trader may look like a home run. That same trader may well end up completely torpedoing your entire account in one afternoon. To help make sure this doesn’t happen we’ll set down a few guidelines. These guidelines will give us something to look for when choosing our third party signal provider.
1. The first thing I look at is weather the trader is a winner or a loser. This may seem obvious to nearly everyone, but I often see losing signal providers with 50-100 people their signals.
2. The next thing I look at is how long they have been a winner. If a trader has been winning for a week that means nothing to me. I recommend that you don’t trade any signal provider with less than a few months of results to show you. Any one can place a few good trades one week and get lucky. If you are going to be this trader’s signals they need to be established.
3. Look at the max draw down. This is the largest peak to trough draw down in equity that the trader has historically had. Some traders refuse to take a loss. This causes them to hold on to losing trades forever or until they turn to a winner. Turning a loser into a winner sounds great, but it will eat up a huge chunk of margin and may never turn around. If it doesn’t turn in your direction, you will have your entire account destroyed by a trader that could have taken a 30 pip loss but held on until it was an 800 pip loss.
4. The first three are easy to look at. They will be displayed right on the main screen of signal providers to choose from. Once you get a few signal providers you are thinking of using, its time to dive a bit deeper into their history.
a. Look at their actual trades. Do they have a good win rate
Cash back at Rite Aid...
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<div class="field-item"><p>I was pleased to find an e-mail in my inbox this morning announcing the return of Rite Aid's Gift of Savings program. Basically, the chain rewards you with a gift check for your holiday spending. From Nov. 16 through Dec. 24, spend $25 to $50 and get $5 back. Spend $51 to $100 and get $10 back. Or, spend $101 or more and get $20 back. This is great because you can accumulate your savings over time, while still using coupons and participating in Rite Aid's normal rebate program. You will need to be a member of Rite Aid's Single Check Rebate program to participate. If you are unfamiliar, you can read my explanation of the program <a href="/taking_stock/coupons_101_rite_aid_rebates_explained" target="_blank">here</a>.</p></div>
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Sam's Club and Black Friday...
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<div class="field-item"><p><img src="/sites/projects.newsobserver.com/files/images/SAMS_Logo_4CP_OL.preview_0.jpg" alt="" width="112" height="112" align="left" />For those of you who are planning to shop at Sam's Club on Black Friday, here's a little warning for you. Unlike previous years, when Sam's would issue guest passes for non-members, this year, the prime hours of 5 to 10 a.m. are going to truly be reserved for members only. Sam's says this is a way to reward their members and give them first crack at the big Black Friday deals. If you need a little incentive to join, Sam's is offering a $10 gift card bonus for those who sign up for membership between now and Thanksgiving. You could use that card on Black Friday to maximize your savings, or you could save it for a later date.</p></div>
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Nestle recalls Lean Cuisine...
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<p>Heads up, shoppers. Nestle Foods is recalling nearly 900,000 pounds of Lean Cuisine chicken entrees because there may be pieces of plastic in them. The affected products were Pesto Chicken with Bow Tie Pasta, Chicken Mediterranean and Chicken Tuscan.</p><p>This is the second recall this month for Nestle. On Nov. 7, the company recalled two different varieties of Nesquik Strawberry Powder.</p><p>For the product codes involved in both recalls, click Read More. </p> <div class="node-blog-teaser-footer">
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Plan for Cyber Monday...
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<div class="field-item"><p>If you're a the kind of shopper that prefers to click your way to savings from the comfort of your own home, you probably know all about Cyber Monday. That's the nickname given to the Monday after Thanksgiving, which is typically a crazy busy day for online shopping Web sites.</p><p>The National Retail Federation has redesigned its Cyber Monday shopping page, which can be a useful tool for those of you planning to hit the virtual stores. Among the new features this year: a comparison feature that searches all of the Web site's partner merchants for the best deals, the opportunity to register your e-mail address to get early alerts about good deals, a deal of the hour promotion and a new green product shopping category. You can find the Web site <a href="http://www.cybermonday.com/" target="_blank">here</a>.</p></div>
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A sale for book lovers...
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<div class="field-item"><p>Just a reminder that the Wake County Public Library Booksale begins tomorrow in the former Super Kmart at 4121 New Bern Ave. in Raleigh. There will be more than 300,000 books for sale. Here's the schedule:</p><p><strong>Wednesday:</strong> noon to 9 p.m. <strong>Thursday and Friday:</strong> 10 a.m. to 9 p.m.</p><p><em>(Prices the first three days are $4.00 for hardbound books; $1.00 for paperbacks)<br /></em></p><p><strong>Saturday:</strong> 8 a.m. to 8 p.m. <em>(Prices on Saturday are $2.00 for hardbound books; 50 cents for paperbacks)</em></p><p><strong>Sunday:</strong> 10 a.m. to 6 p.m. <em>(Prices are $5.00 per box; $2.00 per bag with the library providing boxes and bags)</em></p></div>
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What are you ISO?
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<div class="field-item"><p>It's Monday, so I thought this would be a great time to put up one of those posts where readers of Taking Stock can help each other out. Is there an item you've been desperately combing the stores for? What are you in search of? (ISO for short) Post it here and maybe one of your fellow readers can help you out. </p><p>If you're posting an ISO item, be as specific as possible. Give the brand, describe the package, etc. If you're responding to an ISO posting, be as specific as possible. Give the store name, location, etc. so that the other person can actually go find it! </p></div>
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You're on the clock...
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<div class="field-item"><p>To me, one of the best parts about shopping is having a chance to chat with the cashiers. Of course, part of that is because it's my job to know what's going on in stores, and employees are always the ones with the scoop. But part of it is also just because I like talking with people. At stores where I am a regular, I know many of the cashiers by name. </p><p>So I was surprised by <a href="http://online.wsj.com/article/SB122651745876821483.html?mod=dist_smartbrief" target="_blank">this Wall Street Journal story</a> about an efficiency program being implemented by midwestern grocery chain Meijer. The company is timing its cashiers, starting the clock when the customer's first item is scanned and stopping it when the receipt is printed. The faster you go, the more efficient you are deemed. I understand that companies need to look for efficiencies wherever they can nowadays, but I have to wonder if this will backfire. Who likes to feel rushed when they are giving a store some of their hard-earned money?</p></div>
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From my inbox...
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<div class="field-item"><p>I had a couple of interesting e-mails this morning:</p><p>*Walgreens is offering $10 off your holiday photo gift order of $40 or more (that's like photo mugs, calendars, photo books, etc.) The deal is good through Nov. 22. Use coupon code HEADSTART when you check out online.</p><p>*Barnes & Noble is offering a free silver-plated picture frame when you spend more than $75 online. You can view the details on that deal <a href="http://www.barnesandnoble.com/holiday-gifts/index.asp?r=1" target="_blank">here</a>.</p><p>*And Petco is offering free shipping on online orders of $50 or more with the coupon code "autumn." There are some exclusions, including pet food. You can view the details on that one <a href="http://www.petco.com/Help/Promo.aspx?OrderPromoCode=autumn&cm_ven=email&cm_cat=prod&cm_pla=111608HolidayTravelDog&cm_ite=shopnow&MessageID=100376" target="_blank">here</a>.</p></div>
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New Attraction Book...
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<div class="field-item"><p><img src="/sites/projects.newsobserver.com/files/images/attractionbook.jpg" alt="" hspace="7" vspace="7" width="99" height="142" align="left" />The new 2009 Attraction Books are out, featuring coupons from dozens of local businesses. I like these because they are very local and there are a lot of BOGO restaurant coupons. There are also some coupons for national chains, including CVS, World Market, Michael's, AC Moore and Dick's Sporting Goods.</p><p>The books are $25 each, but I do think you will be able to make them pay for themselves pretty easily. There is a "Triangle" book and a Johnston County book. If you get a bunch of friends together, you can decrease the cost each of you pays because the company is offering a buy five get one free deal. And shipping is free as long as you choose standard shipping. <a href="http://www.attractionsbook.com/" target="_blank">Preview the books or order one here</a>. </p></div>
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Reminder: Dinner for vets tonight...
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<div class="field-item"><p><img src="/sites/projects.newsobserver.com/files/images/Honoring%20America's%20Bravest.preview.jpg" alt="" hspace="7" vspace="7" width="244" height="183" align="left" />Just a quick reminder that Golden Corral restaurants will be honoring veterans and active military personnel this evening with a free dinner from 5 to 9 p.m.</p><p>While you're there, you might think about participating in the company's postcard campaign, which sends postcards of thanks and support to troops overseas. Last year, the company sent more than 55,000 postcards to troops. This year, the goal is 75,000, and today is the last day of the campaign. The postcards should be available in restaurants, so all you have to do is fill one out and hand it back in! </p></div>
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Cool Target gift cards...
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<div class="field-item"><p>Each year, retailers roll out new gift card designs in time for the holidays, but Target has a few new cards that are really different.</p><p>Pictured here are three examples, one that is a tin filled with holiday M&Ms, one that lights up (the one with the house picture) and one that doubles as a digital camera. There is no extra charge for these cards and they can be loaded with any value from $5 to $2,000. The only caveat is that there is a minimum value of $50 for the camera card.<img src="/sites/projects.newsobserver.com/files/images/target%20card%203.jpg" alt="" hspace="7" vspace="7" width="146" height="97" align="left" /><img src="/sites/projects.newsobserver.com/files/images/target%20card2.jpg" alt="" hspace="7" vspace="7" width="160" height="100" align="left" /></p><p><img src="/sites/projects.newsobserver.com/files/images/target%20card.jpg" alt="" width="134" height="90" align="left" /></p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p></div>
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It's time for calendars...
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<div class="field-item"><p>I heard this week from reader Cat, who said she was at the ACE Hardware in Raleigh's Seaboard Station and noticed a giveaway of a 2009 calendar with a coupon inside for each month. According to Cat, there are 5 coupons for $5 off your $25 purchase distributed throughout the coupons on the calendar, each coupon being good for a month. ACE is one of several retailers that has coupon calendars. I know Chick-fil-A has one as does Auto Bell. There are charges for some, but they can be really worth the money and can also make good gifts. Just something to think about as holiday shopping time approaches.</p></div>
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Today's coupons are up...
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<div class="field-item"><p>Well, there were more than 170 new coupons in this morning's paper, and there were some really good ones!</p><p>Be sure to catch the one-page insert from Kroger this morning, too. There are nine coupons on that flier, and note that all but one of them are manufacturer's coupons, meaning you can use them at any store. And if you use Bounty paper towels, there's a Bounty coupon on page 9 of Parade today, too.</p><p>Happy clipping, everyone! As always, if you prefer the database in an Excel spreadsheet, it is available for download below. </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/Find a Coupon 1116.xls'>Find a Coupon 1116.xls</a><br /></div>
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Nutro dog food rebate...
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<div class="field-item"><p>If you feed your dogs Nutro dog food, you may be interested in this one.</p><p>The company is offering up to $10 back on the purchase of Natural Choice High Energy Food. The rebate gets bigger if you buy a larger bag. To get the full $10, you have to buy the big 35-pound bag. If you buy the smaller 5-pound bags, the rebate is $3. The purchase must be made by Jan. 2 and postmarked by Jan. 16. You'll need the form below! </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/Nutro rebate.pdf'>Nutro rebate.pdf</a><br /></div>
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Free ice cream with your turkey...
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<div class="field-item"><p>If you are planning to buy a turkey from Earth Fare for Thanksgiving this year, take the flier I've attached below with you.</p><p>The retailer is giving away a free 56 oz. tub of ice cream with your turkey purchase (retail value $4.99). Earth Fare all natural turkeys are going for $1.99 a pound, and organic turkeys are $2.99 a pound. It's one per customer and the certificate is good only on the day you pick up your bird. </p><br /><br /><b>Document(s):</b><br /><a href='http://projects.newsobserver.com/sites/projects.newsobserver.com/files/free_ic.pdf'>free_ic.pdf</a><br /></div>
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because they have opened a ton of trades all at the same time on the same currency pair? They may have 20 winners in a row. This looks great, but if you look a bit deeper you will see that its really only 1 winning trade places 20 times. Not as impressive is it?
b. Look at their draw down on individual trades. Do they let a trade go 300 pips against them and then close it out when it hits 5 pips of profit? This is a trader who lets their losses run out of control and cuts their winning trades short. It’s not a trader that you want in control of your money.
c. Do they add to losing positions? A trader who constantly adds to losing positions hoping it will turn for them is not someone you want your account.
5. Choose a signal provider that suits you. Some traders may provide larger returns over time, but take bigger risks leading to bigger draw downs. This might be OK with you. If you are more conservative and cannot stomach large drops in equity you probably should choose a more conservative trader.
These are just a few things to look for when choosing a third party signal provider to trade your forex account. You should always trade a demo account before opening a live account with real money. Remember it’s your account. In the end you choose the signal providers, and you are responsible for what happens. Article Source: http://www.ArticleJoe.com To learn more about 3rd party signal providers visit www.automatedforextradingsystems.com/Forex_Articles.html“target=“_blank“>Automated Forex Systems or to open a demo account at www.automatedforextradingsystems.com/“target=“_blank“>Zulutrade Forex Autotrading
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