What about using CFD trading signals and subscription services?
There is a very interesting middle ground to consider when it comes to choosing a new trading system to follow.
And that is subscription services where you get advice to enter and exit stocks & CFDs, and when…
There may be “price predictions” (usually using Fibonacci numbers) of where the stock will go to and then have a possible change in direction at that time, and thus is a good place to consider exiting…
More of that later…
But let’s consider 2 categories of this type of service for now:
1. The system may be based on a mixture of fundamental analysis and technical analysis of a “head trader or guru”.
Hence it is time consuming, experienced based, and hence you’re leveraging off someone elses expertise (unless you enjoy or are already performing hours of fundamental analysis).
What’s important to consider with these services is this:
The success of such a system depends on 1. the skill of that head trader based on past performance (look at their figures), 2. the fact that the head trader will continue to perform well, 3. the fact that the head trader will be around for a while to come.
2. The market alert service may be based on complex or proprietary technical analysis. Complex meaning the analysis requires a large number of calculations such as multiple Fibonacci levels, multiple Elliot Wave analyses, and precise calculations of peaks and troughs and patterns of price action. Proprietary means something unique, or a unique combination of technical indicators that the head trader does not want you to know.
The advantage of these services, assuming they are profitable are 1. you can access a system that is not available anywhere else, 2. it will save you time because you don’t have to learn how to trade the system.
With both of these, realise that you will probably not learn the system at all, and if the service goes away, you will have to stop, and will have to find another guru to follow.
. 16 May 06 | CFD trading, CFD trading systems