PipStop

The problem in those looking to trade Forex is companies like the one I received an unsolicited email offer from on Thursday. The company is called City Pips.

By looking at its slapped together website it's actually run by SolomonFX - the company that I was skeptical about at the Los Angeles Traders Expo last month.

Solomon FX has been in business since January 2007 and at the Expo the presenters mentioned thy have taught a paltry 100 traders. Now, they're obviously looking for a new cash stream on the back of a signal system that has been "performing" for TWO months!!!

I think who do these guys think they are?!? Pretty audacious and arrogant.

It's demonstrated by some of their FAQ answers:

How Much Can I Make?
Trading is a risk, and as such there is never a guarantee of profit, but the signals that you will be sent have been known to produce up to 1000 pips per month.

Pardon me? "They have been known to produce up to 1000 pips per month" - that's 2 months!

What if I have never done currency trading before?
Our Quick Start videos will show you the basics of Forex, help you get a broker, show you how to navigate a trading platform, and show you how to place trades when you get a signal. The videos are taught in easy to understand language, and will lead you through step by step.

I've said this before and I'll say it again - trading is NOT for everyone. How does money management play into this? What about trading psychology when a trade is experiencing a major drawdown? And the what abouts can go on and on ...

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The problem that I have with this, is that industry wide we have a management of expectations problem. Now those who are new to trading or heaven forbid are induced because this opportunity sounds so good are going to expect over 1000 pips a month every month - and how long can that possibly last?

Quite honestly if I was going to go for anything like this, I'd much rather go for Kathy Lien and Boris Schlossberg's BKTraderfx service, which has gaining over 1400 pips SINCE JANUARY - which is still a very good and manageable return.

That's my weekend rant.

Tomorrow I'll share some of my thought on a live trading workshop that was held here in Vancouver by Pierre Charlebois yesterday.