One of the keys to being a successful currency trader is knowing what information you can rely on. There are many websites that give tips or charge fees for providing information (software services also). How do you protect yourself from losing money? Building a reliable source database is something that is overlooked with many traders. There are three keys you should learn in order to be a successful trader. By following a methodical intelligence technique used by military and government agencies you can increase the chances of your desired outcome. As an intelligence analyst, I’ve noticed how most literature regarding business and investment leaves out details on how to avoid bad information. Whatever businesses you’re in there will always multiple sources of information in leads from every direction. Learn how to channel this information and use it to your advantage.
Three steps to building a currency intelligence network:
1. Build a database of sources.
This may seem very simplistic but is a vital part of your success. Having good information from one source, such as a website or a tip from an individual, may be good advice but you need to look at the overall picture. By starting a database of sources you can view your information from an overall perspective rather than relying on a person or website. Just because information proves itself credible one day does not mean you should necessarily trust the source. Start an Excel spreadsheet, or whatever way works best for you, and track your sources tips on margins of success or failure. When your source proves to have moral reliable information over time then you can move them to a “trusted source” database.
2. Bad sources are good news.
When you find a source that is giving marginal or bad information this protects you from making irrational decisions. You can then weed out unreliable information into a separate database. You will want to create two separate databases. As mentioned above, the first will be your trusted source database and the second will be your unreliable sources. You can also make a database for marginal sources that have intermediate success of information.
3. Network with other traders.
Although this may seem counterproductive since some may consider themselves in competition with other traders, building a database of reliable source information will work to your advantage. Many people make the mistake of considering their brokers, software or source of information as part of their network. The problem is that brokers and software programs do not care about your success or failure. Your network should be based on other traders. Find other traders with a strong track record. Integrating strong traders to your network will save you time and money. By giving and receiving information on the reliability of sources with other traders you can build a database that is reliable in addition to a strong information network. Additionally, there are thousands of traders using thousands of different programs and sources. Why not build a network to collect this information and use it to your advantage? Remember, the more information you have, the more predictable your desired outcome will be.
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