5 Deadly Mistakes To

Avoid When Using a

Forex Signal Service
What You eed To Know About Using a
Signal Service Safely and Effectively

Written By:
The ForexGator.com Team

www.ForexGator.com

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 Copyright otice
All rights reserved. o part of this publication may be
reproduced or transmitted by any means or in any form,
electrical or mechanical. Any unauthorized use, sharing,
reproduction, or distribution is strictly prohibited.

Legal otice
All information provided here is for educational purposes only
and is not intended to provide financial advice. Any statements
about profits or income, either expressed or implied, do not
represent a guarantee. Your actual trading may result in losses
as no trading system is guaranteed.

You accept full responsibilities for your actions, trades and profit
or loss, and agree to hold the developers of ForexGator.com and
any authorized resellers or distributors of this information
harmless in any and all ways.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMACE RESULTS HAVE CERTAI
LIMITATIOS. ULIKE A ACTUAL PERFORMACE RECORD, SIMULATED RESULTS DO OT
REPRESET ACTUAL TRADIG. ALSO, SICE THE TRADES HAVE OT BEE EXECUTED, THE
RESULTS MAY HAVE UDER-OR-OVER COMPESATED FOR THE IMPACT, IF AY, OF CERTAI
MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADIG PROGRAMS I GEERAL
ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGED WITH THE BEEFIT OF HIDSIGHT.
O REPRESETATIO IS BEIG MADE THAT AY ACCOUT WILL OR IS LIKELY TO ACHIEVE PROFIT
OR LOSSES SIMILAR TO THOSE SHOW.

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 Table of Contents

Money Management Page 4

Holiday Trading Page 5

Following the Rules Page 6

Analyzing News Page 7

Chart Watching Page 8

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 Money Management
How much do you want to risk on your trade? Money management is one of the most
important rules in trading! You MUST know how much you could lose on a possible trade
before placing it!

Recommendations:

Conservative: 2%

Moderate: 4%

Aggressive: 6%

Calculation Of Lot Size:

1. S/L= # pips for stop-loss
2. Risk: % from one of the above categories
3. Amount of money in the account

Example: GatorMini Trades have a stop-loss of 55 pips. If you are a moderate

trader, you want to risk 4% of your account. Let's say we start with an account of
$10,000.

Formula: Risk % x $ = X X / (divided by ) S/L /(divided by) 10 = Lot Size

.04 x $10,000 = $400

$400 / 55 pips / 10 = 0.72 Rounded to 0.7 This is the lot size you should use for this
trade.

Another aspect of money management is accuracy. Many traders use an accuracy

percentage from the past year to determine their risk percentage. If the accuracy is 95% or
higher, many traders double their risk percentage. If 90% or higher, many traders do a risk
percentage 1.5 times the original. Anything less than 90% should be left alone.

Our GatorSignal Trades at www.ForexGator.com are 97.9% accurate. In this case, you
could, at your discretion, double your risk. Our GatorMini Trades at www.ForexGator.com
are 87.3% accurate, in which case you would leave your original risk tolerance percentage as
is.

The final aspect of money management has to do with margin. If you plan to have many
trades in one account at once you may want to decrease your lots sizes so that you do not run
into a margin call due to the number of trades and lots open at once. For instance, since you
could potentially have 4 trades open at once (between GatorMinis and GatorSignals in two

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pairs), you would need to divide the risk by 4, or in half for GatorSignals risk and in half for
GatorMinis at www.ForexGator.com.

Holiday Trading

Don't trade on holidays. Just don't do it! Fewer people trade the Forex market on holidays,
allowing large bank orders that come in to move the market. That means that your normal
strategy is unlikely to work in this volatile market.

The spread can kill you on holidays! Due to a market that is less liquid and less traded, the
brokers charge a higher spread to those who are trading. This can make it very hard to make a
winning trade! Just as we always look for smaller spreads to keep more profit in our pockets,
we don't trade during times of ill-liquidity and higher spread.

Here at www.ForexGator.com, we trade on some holidays, but very few. Labor Day and
Memorial Day in the United States are less widespread holidays than are Easter and Christmas.
We take over a week off during Christmas and New Year's Day, as most traders do. You need to
decide, based on your own risk tolerance, on which holidays you'd like to trade. No one should
trade on worldwide holidays, such as New Year's Eve and Day, Good Friday, Easter Monday,
and Christmas Eve and Day. Other holidays, especially those that apply to one country only,
tend to have less of an effect on the market, but need to be taken in to consideration in your
trading system.

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 Following the Rules and Having a System

DO OT DEVIATE FROM THE SYSTEM! Do OT increase your lot sizes because the
account is or isn't doing well (this will surely get you into a margin call with your broker). Do
NOT remove or change take profit or stop loss (don't marry the trade. . .more will be along to
recover the stop loss). Do NOT pick and choose your trades (you may end up picking the losers
and not enough winners!).

EMOTIO Emotion is the devil in Forex trading! It will kill a trader every time. A
drawdown is scary, and a trader sells a trade before it can go down any further to "protect" his
principal. WROG! Stop losses are there for a reason! Here at www.ForexGator.com, we have
done thorough research to choose stop losses specific to a pair and type of trade.

FEAR Okay, okay, fear is an emotion. But, in Forex trading, it is THE emotion. Fear can
translate is many, may ways. One of the most common is hesitating to make the trade, or "pull
the trigger." Perhaps you had a loss the day before and are scared that it could happen again.
Maybe you had two or three losses and are scared. This is the worst time to deviate from the
system: the recovery period. This is the point where your account recovers those losses! Do not
impede it from doing so!

GREED Okay! I know, I know! Another emotion. Are you getting the idea that without a
system, Forex can be a very emotional place? It is not healthy for you or your Forex account!
That is why we developed the ForexGator system at www.ForexGator.com to begin with!
Greed is evil. Greed is what causes traders to deviate from the system in a different way:
placing trades manually. Perhaps we haven't had enough signals for you in recent days. Or
perhaps you want to recover from a loss more quickly. WROG! Stick with the system. . .it
stands the test of time. Unless you have been trading a manual strategy on a demo account for 6
months or more, do not test it on a live account! You will only hurt yourself!

All of these things are for YOUR protection! The system we use at www.ForexGator.com is
time-tested and it has proven itself. Any change you make WILL change the results, and most
times, for the worse. A change you make may work once or twice, but it will turn around and
BITE you!

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 Reading and Analyzing the ews
If you want to news trade, news trade. Buy a book or system to learn to trade the news. But
DO OT read or interpret the news into GatorSignals or GatorMinis. You must ride the news
wave sometimes, but the ForexGator system from www.ForexGator.com is based on many
types of analysis, including fundamental analysis. An experienced trader can guess what the
market will do based on a specific type of news, but the market WILL ALWAYS surpise you!
And, in the long run, the truth is this: 99% of the time, news creates a spike on the chart, just a
blip. The chart will revert to technicals after one news announcement, meaning that it will turn
around to come right back to where it began. This can catch a lot of traders on the wrong end of
the trade, just assuming it will continue on its original path.

Once again. news trading is a specific technique; almost an art. Traders spend years with
mentors and training systems before they understand how to trade the news. Every trader has
his or her own system, of course, but it takes years to understand the nuance of news trading.
The volatility after news is HUGE! Just watch after important news- - -there is typically a
white or green candle with a HUGE tail and hair! That means the market didn't know how to
interpret the news, so how should you, as a trader? Oftentimes, especially in times of economic
distress, news is interpreted in a way opposite than expected, or even opposite than it would be
interpreted if it was not a time of economic distress.

Bottom line: news trading is risky business. If you want to risk your money, go to Vegas!
Our goal at www.ForexGator.com is to provide our members with consistent, lower-risk signals
with the potential for reliable income every month. We find that this is the goal of the majority
of our members, and we have developed the ForexGator system just for their, and your,
purposes!

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 Watching the Charts
It is tempting, we know! But watching the charts after you have placed a trade can play with
your mind. Often, a trader will think he or she knows better than what the rules state, causing
them to make on of the mistakes described above. It is important to believe in your system! We
trade, and have traded, the ForexGator system ourselves at www.ForexGator.com. WE know
it works. YOU have seen proof that it works. Embrace it, have confidence in it, and don't ever
assume that you know better than a working system!

EMOTIO. Yes, there it is again. Didn't I tell you it is an integral part of Forex trading?
Rather, removing it is an integral part of trading Forex profitably. We discussed why a system is
so very important, and watching your trades after they are placed them simply increases the
probability that you will become emotional and sell the trade early or modify a take profit or
stop loss.

LIFE. The whole purpose of this system is so that our members can have a life with the
potential for a reliable income. Spend time with family or friends. Go to a part-time job.
Volunteer. Worship. Play soccer with your kids. Pursue the art career you've always wanted.
This is the POIT! Work your two hours a day, and feel good about it. Then walk away, It
takes discipline. If it were easy as pie, everyone would be doing it. But everyone isn't doing it;
you are! YOU ARE! You are a valued member of ForexGator, and we have created a system
that takes little time and is profitable for you. Have faith. Take a bite out of Forex!