PipStop

In the last couple of months a former moderator of Trading Post, Jason Deal has started his own service at www.pipsnipers.com. Perhaps this can be seen as a slight at Jason, but it isn't because of any animosity I have against him, because there is none. Rather, as I've thought about this and seen his initial interest of 500 people go his way (probably most out of sheer curiosity), and I wanted to share my thoughts on this and add my perspective.

Jason is providing a service that actively trades the GBY/JPY actively throughout the day. Yes this is the most volatile P/J. He calls it sniping, but at the 5, 10, 15, 20 pip level I still liken it to scalping ESPECIALLY when it comes to the P/J. 

I think Jason is truly trying to provide a service that will benefit traders. He also has unaudited documentation of trades that are taken with his service. In order to take advantage of this service, though, you need to essentially be readily available to take trades when they're called.

While this may work for some, this is not a one size fits all solution that perhaps it is made out to be. For many traders making multiple trades of 5, 10, 15, 20 pips in a day isn't as efficient as making 100 pips in two days on one trade.
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As an example, I'm subscribed to Rob Booker's signal service when it was $30 a year (a steal) but now it's $47 a month, which is still very reasonable. It's definitely a less time intensive, but also less hands on way of gaining trading support.  
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What would be at the center of the issue is how Jason's service was portrayed at the beginning, insinuating that thousands of pips can be made per month. Disclaimers notwithstanding, this is a

Making claims during any test period and building expectations on that is an extremely risky move. You don't have to a trading expert to know that managing, then fulfilling expectations almost never In a February newsletter Jason made the following comments:

"... Our test forum/site/trading room has been an immense success!

... And last but not least, in a market that is less than desirable, together, we have captured over 2200 Chart Pips in the 5 weeks we have been together!!! What a fantastic way to start our journey. The best trading months in 2008 are yet to come!!!

   We are upon the LAUNCH DATE (February 18th 2008)and wanted to inform you of the many choices you have that will fit ANY budget.  This room allows your trading to FUND its self!

Here is what you can expect from our paid service,

Secondly our first order of business day to day is to make pips! We will share with our members the details of each and every trade taken by the Pipsnipers Modsquad!!"

I hope you find trading solutions that are right for you - not because you've been convinced by any outside influences that it is right for you. You need to understand what type of trader you are, and what your goals are before you can truly have success as a trader. At the same time you have to set a solid foundation for yourself of solid Forex education.

Lastly, about a month ago I linked to a press release by the British Columbia Securities Corporation that warned self-directed investors of various scams being perpetuated through "communities" and "friends."