If you are serious about trading currencies, I have no doubts that you are among those who are looking for the "Holy Grail" of the forex trading systems. And, of course, you'd love to have an automated forex system that actually works, because very often they are disappointing.
Thanks to the Internet and the changes to the trading laws in most of the countries, any person can get involved in forex and participate in that enormous market. All that is necessary to do that is having an Internet connection and an account with a forex broker (loaded with some trading capital; at least $2K is recommended, but some brokers allow to trade with much less).
Neither stock or futures trading have it, but forex trading has the "built-in" protection against losing the trading capital (no debt balances are allowed), but it's never pleasant to see your money being depleted. So as soon as you experience a series of losing trades, you start looking for that "Holy Grail" - a trading system that will help you not only protect your trading capital, but will also save you stress, time and energy. And the best one would be something that would do trading for you - 24/7, therefore something that would be making you money even when you sleep.
Not every forex trading system does all of that; but probably the most important benefit of using an automated forex system is that it can trade 24/7 and can do that without any emotions. That's something that no human can do!
So what to look for in an automated forex trading system? I recommend that you seek a next-generation automated forex system. Look for trading software that uses not only Fibonacci tools and the commonly known indicators, such as: MACD, RSI, stochastics, oscillators, Bollinger bands, etc. Systems that use only them are obsolete. You should be using an automated forex system that applies not only mathematical algorithms, but also principles from a variety of progressive scientific theories, such as: Quantum Mechanics, Chaos Theory, Fractal Geometry and Wavelet Theory.
Look for a system that uses synergistic combination of those sciences to determine the direction in which the market is going and to provide you with the signals that will give you short- and long-term profits. With a top-class automated forex system, you should be able to profit from both short-term and long-term currency moves - at any time (24/7) and with any currency pair. It should be flexible enough to adapt to your unique trading style and to unique characteristics of trading, as they are different for each currency pair, for various time frames. It should be able to assist you in various types of forex trading, such as position trading, intra-day swing trading, trading the news, etc. And it should help you properly manage your trading capital - important role, which often decides if a trader enjoys making profit in long run, or not.
Your perfect automated forex system should deliver objective means of filtering out questionable signals and it should accurately identify areas of major and intermediate support and resistance. It should be able to help you set and achieve realistic profit targets for maximum gain, with low risk of loss - it should be able to determine proper stop loss placements and to tell you how to exit the trade if your profit target is not hit.
Those technical aspects of the perfect system are very important as is the ability to deal with the money management, but a perfect, completely automated trading system should also be able to eliminate trader's emotions from the trading. Well, computers don't think, so it should be easy, isn't it? When making a final decision about getting your next forex trading system, ask this question - after the initial set-up, will the system require anything more from me than making sure that my computer is on? With the best systems, after you decide what pairs to trade, in what time frames and what your profit/loss settings are, all you have to do is just ensuring that your Internet is working.
Mary Cala is the Author and a Forex Trader. She also writes about trading currencies and about forex systems on her blog Automated Forex Systems. Mary recommends Gomega Trader as the best automated forex system because it utilizes Chaos Theory, Quantum Mechanics and Fractal Geometry.
Friday, December 5, 2008
How to Find Your Perfect Automated Forex System
Would you like to be able to trade forex on autopilot? Would you like to use robot to do the trading for you? To do tasks like finding profitable trades and executing them - even when you sleep?
Well, in the computer and Internet era it's relatively easy and almost every week we see a new automated forex trading system being offered to the general public. Some of them cost under $100, but there are also much more expensive programs - with prices in the $2,000 - $10,000 range. However, very often those expensive systems are sold to limited number of traders.
Why are automated forex systems in such high demand, commending such high prices?
The answer is simple; it can be found among the motivating factors for the participants in any market - not only forex, but also stock and commodity trading. I'm talking here about greed, fear, desire to live pleasant life, etc. Of course, those are rather general motivations, but they really have significant impact on every trader's mindset and his or her approach to trading.
Many authors writing on the topic of trading maintain that although fundamentals such as interests rates, CPI, employment data, etc. have significant impact on how the markets move, the psychological aspect of trading is much more important. The markets are moved by the combined belief system of each individual trader (or market participant).
That's a very important concept, because it means that each trader's desires, hopes, fears, needs, opinions, experience, education, interests, motives, etc. impact the way the trader analyses the available information and makes the trading decisions based on both belief system and the information. Those decisions are about what and when to trade, how much to expect from a trade, how much to risk, when to enter and exit and whether to buy or sell. Those decisions made by each trader are transformed into orders - that's how the markets, including forex market, move.
It's a very interesting process, isn't it? And the implications are far-reaching, because if we accept it, it means that we can't consider markets as linear systems that could be analyzed with tools that are based on linear mathematics and statistics. And as so much of the movement of the markets is determined by the psychology of trading, it is obvious that in order to explain that movement, it is necessary to use non-linear systems (models). Also, inter-disciplinary approach is needed, as only in that way it is possible to follow the markets.
With such a powerful tool as a computer, it is possible now to build much more complicated models than those created before the computers became available. Those models and the results of using them are developed by the software programmers into trading systems. There are automated forex trading systems that incorporate breakthrough discoveries from emerging progressive sciences, such as: Quantum Mechanics, Chaos Theory, Fractal Geometry and Wavelet Theory.
Forex market is best suited for such inter-disciplinary approach due to its huge trading volume - many times bigger than that of the stock market and the futures market. When those advanced sciences are used to create trading systems, it results in more accurate and thus more profitable trading signals.
So next time, when looking for an automated system for your forex trading, consider spending extra dollars to purchase a system that employs non-linear theories and tools. Analyses provided by such a system will be much more accurate than those based on out-dated linear theories, which can only tweak historical data to fit the model. And you will get a system that more closely fits your trading style.
Mary Cala recommends Gomega Trader as the best automated forex system because it utilizes Chaos Theory, Quantum Mechanics and Fractal Geometry. Mary is the Author and a Forex Trader. She also writes about trading currencies and about forex systems on her blog Automated Forex Systems.
Well, in the computer and Internet era it's relatively easy and almost every week we see a new automated forex trading system being offered to the general public. Some of them cost under $100, but there are also much more expensive programs - with prices in the $2,000 - $10,000 range. However, very often those expensive systems are sold to limited number of traders.
Why are automated forex systems in such high demand, commending such high prices?
The answer is simple; it can be found among the motivating factors for the participants in any market - not only forex, but also stock and commodity trading. I'm talking here about greed, fear, desire to live pleasant life, etc. Of course, those are rather general motivations, but they really have significant impact on every trader's mindset and his or her approach to trading.
Many authors writing on the topic of trading maintain that although fundamentals such as interests rates, CPI, employment data, etc. have significant impact on how the markets move, the psychological aspect of trading is much more important. The markets are moved by the combined belief system of each individual trader (or market participant).
That's a very important concept, because it means that each trader's desires, hopes, fears, needs, opinions, experience, education, interests, motives, etc. impact the way the trader analyses the available information and makes the trading decisions based on both belief system and the information. Those decisions are about what and when to trade, how much to expect from a trade, how much to risk, when to enter and exit and whether to buy or sell. Those decisions made by each trader are transformed into orders - that's how the markets, including forex market, move.
It's a very interesting process, isn't it? And the implications are far-reaching, because if we accept it, it means that we can't consider markets as linear systems that could be analyzed with tools that are based on linear mathematics and statistics. And as so much of the movement of the markets is determined by the psychology of trading, it is obvious that in order to explain that movement, it is necessary to use non-linear systems (models). Also, inter-disciplinary approach is needed, as only in that way it is possible to follow the markets.
With such a powerful tool as a computer, it is possible now to build much more complicated models than those created before the computers became available. Those models and the results of using them are developed by the software programmers into trading systems. There are automated forex trading systems that incorporate breakthrough discoveries from emerging progressive sciences, such as: Quantum Mechanics, Chaos Theory, Fractal Geometry and Wavelet Theory.
Forex market is best suited for such inter-disciplinary approach due to its huge trading volume - many times bigger than that of the stock market and the futures market. When those advanced sciences are used to create trading systems, it results in more accurate and thus more profitable trading signals.
So next time, when looking for an automated system for your forex trading, consider spending extra dollars to purchase a system that employs non-linear theories and tools. Analyses provided by such a system will be much more accurate than those based on out-dated linear theories, which can only tweak historical data to fit the model. And you will get a system that more closely fits your trading style.
Mary Cala recommends Gomega Trader as the best automated forex system because it utilizes Chaos Theory, Quantum Mechanics and Fractal Geometry. Mary is the Author and a Forex Trader. She also writes about trading currencies and about forex systems on her blog Automated Forex Systems.
Subscribe to:
Posts (Atom)