Questions to Ask before Buying Day Trading Services - dummies

Questions to Ask before Buying Day Trading Services

After you do your basic background checks on a day trading service you are thinking about purchasing, it’s time to ask some questions about the service providers.

Do not trust any promises of performance. Day trading is a difficult business. Many people wash out because it doesn’t suit their personality. Others fail because they don’t have enough startup capital, they don’t take the time to figure out how to do it, or they simply have a run of bad luck. No one can promise that you’ll succeed.

  • Can I get a free trial to check the service out?

  • What training and support do you offer? Do you have a user community?

  • How long will it take me to learn the system? Will I need to pay for additional training and coaching, or is your built-in support adequate?

  • Who will be teaching me or advising me, and what is this person’s background?

  • How long have you been in business? Why was the company formed?

  • What additional features are available at additional costs? How many customers subscribe to only the basic system?

  • Will this system support my trading style and work with the assets I prefer to trade?

  • Do you screen traders for your program? Do you ask traders to leave? What are the characteristics of those who do well? Of those who don’t do well?

  • Can I talk to other customers?

  • Is your software compatible with my broker? With other services I’m using? With my computer’s operating system? With my Internet bandwidth?

  • Are your performance numbers actual, or are they hypothetical and based on backtesting? How were the numbers calculated?

Hypothetical performance is based on an analysis of what would have happened had the system been in place in the past or of what may happen if market conditions cooperate. It can be subject to data mining, which means that the system was developed to generate good performance in backtesting, not because it has any logical or theoretical basis.