The Insider Signal Course by Andy X

Shortly after the turn of the new year, direct mail sales letters were sent out advertising a new course known as "The Insider Signal".

Both Streetwise Marketing and Fleet Street Publications were offering the course for around £2,000 + VAT backed by a 30 day, no quibble guarantee.

Produced by a mysterious ex-trader identified as "Andy X", it promises to show the average person how to make £200+ per day trading the currency markets.

The sales letter is very exciting -

"WANTED: Novice Crew to 'Rob' Banks Legally... With an Inside Job!"

It goes on to describe how you can use a secret signal which only a select few people are entrusted with to uncover "access to the 'hidden' money mountain" which is out there for currency traders.

Andy X professes to be just a normal chap who was given an extraordinary break and let loose to trade the markets on behalf of clients.

He took a "job as a broker for one of the largest financial services companies in the world". It was here that he was entrusted with the inside secret of forex trading....

Being from a humble background he was a little peeved to see that the ordinary person wasn't given the opportunity to earn the riches which currency traders were taking from the markets day after day.

Within a year of being given this wonderful opportunity he quit and, aged just 25, now works from home just half an hour a day trading currencies.

Now, as Andy goes to great lengths to explain, the 'big boys' (the banks) only trade 6 currency pairs and the FOREX market is 24 hours. So, no matter when you have time to trade, with his system, you can concentrate on just these 6 currency pairs and take money from the markets in just 1/2 an hour a day.

According to his sales letter, Andy spends just 20 minutes identifying the "Insider Signal" each evening. He then sets up his trade for the following day to enter it automatically. Indeed, some days he wakes up and finds that he has already made money.

Obviously, what this business opportunity involves is day trading the forex market. The sales letter goes to great lengths to try to explain it as an easy way to make money.

All you have to do, according to Andy X, is look for the "Insider Signal", place market orders and then go to bed. In the morning you will wake up to discover that you have made money.

If only it was so easy...

The sales letter suggests that the "Insider Signal" system uses Spread Betting as the preferred method of trading currencies.

Now, this is a great method to use in terms of tax as any profits are tax-free in the UK.

However, if you spread bet a currency, you will find that the price quoted by a bookmaker will have a large spread.

This means that as soon as you enter a trade, you are already in a losing position.

For example: if you spread bet the daily cable (GBP/USD) you might log on and get a price of 1.7466 - 1.7472.

If you now buy (bet the price is going up) at £5 per point, your position is opened at 1.7472. However, the mid price is currently at 1.7469 which means you are losing 3 points (£15).

In order to be in a break even position, the GBP/USD contract has to move 3 points in your favour. Worse still, if you want to close now, the selling price is 1.7469 so you will actually lose £15.

So, Spread Betting is a good method to use as it is tax-free but direct access to the markets would get you better prices and spreads.

The course comes as 10 multimedia CD-ROMs which provide about 15 hours of tutorials. As well as these discs, you get telephone and email support from Andy and access to a members only website.

The CD-ROMs contain information on how to load MetaTrader 4 - an online trading platform - and use it to find trading opportunities which you then take advantage of by opening spread betting positions.

The learning process assumes that you know nothing about FOREX trading and explains the process Andy uses in easy to understand terms.

What you must have to trade successfully is patience, discipline and control. If you do not follow the system to the letter then do not be surprised if you fail.

Forex day trading is not for everyone and, contrary to the claims in the sales letter, there is no "Insider Signal" that you can use to pre-program trades every evening to make money automatically the next day.

Successful forex traders study their craft and apply their findings to make a living from the markets. Often these people spend all day in front of their monitors, waiting for a particular set-up on a chart before they enter a position.

It also should be made clear that trading opportunities do not occur every day. Some days, you will not be able to trade according to the system. If there is not a trade there, you should not trade.

Second guessing the market will lead to losses.

The "Insider Signal" course is expensive but remember, you are covered by a 30 day money back guarantee. Both Streetwise and Fleet Street are respectable companies and you will get your money back quickly if you are not happy with your purchase.

If you do plum for the course, remember to use a demo account until you become profitable and stick to the rules!

Suggested Alternatives and Resources:

Click Here for the article from the Mail On Sunday - 2nd April 2006

http://www.FinancialSpreadTrading.co.uk

http://www.Trade2Win.com