Advantages of Forex Automated Trading Software
Why do people fail to make money in trading?
The main reason why people fail to make money by trading in the financial markets is not due to lack of knowledge or tools, but most of the times the reason is lack of discipline. Until they make money everything is OK and the discipline is not an issue; as they lose the first trades, they get eager to recover the losses, and quite often this "urgency" creates an undisciplined way of trading.
The main mistakes coming from undisciplined trading are:
- anticipating the entry points;
- not closing losing operations;
- closing winning operations too early;
- entering into a position even if there is no entry signal;
- increasing the value of the trade against money management principles.
What do people need to make money?
A good way of overcoming the problem of staying disciplined is to have a software that generates entry signals (without necessarily being 100% automated in processing the actual operations) or a robot that decides when to enter into a position and when to close it; by having a trading software or robot that will guide your trading, you will (probably) avoid trading in an undisciplined way.
Advantages of automated or semi-automated trading
No emotions
The first advantage and by far the most important is that you will not be emotionally vulnerable, provided you follow the software 100%.
You will stick to the principles of the trading style embedded in the robot or software code, and you will not vulnerable (or you will be much less vulnerable) to fall into undisciplined trading faults.
More trading signals and more trades
The software or robot will spot more trading signals than you and, if it is fully automated, it will make more trades than you manually processing the trades. In addition the robot can follow more than one pair and/or execute trades in more than one account.
Multiple pairs, multiple timeframes and multiple accounts is a normal situation for a trading robot, but almost impossible for a human being.
Automated trading means trading while you do other things
If the robot is a 100% hands-off software, it will trade for you anytime you want: whether you are working or having fun, during the day or during the night, the robot will identify and execute trades for you.
Trading Software or Robots
The main difference between these two tools is that with trading software you are much more active in determining the settings of the software and most importantly in executing the trades identified by the software on your screen, whilst the robots are fully automated systems which not only identify the entry points but also execute the trading orders on your behalf. If you prefer to have a more active part in the trading then you should choose trading software, if you prefer to earn or try to earn (robots as everything else are not foolproof) then you should buy a robot.
Article Source: http://EzineArticles.com/8838821
Why do people fail to make money in trading?
The main reason why people fail to make money by trading in the financial markets is not due to lack of knowledge or tools, but most of the times the reason is lack of discipline. Until they make money everything is OK and the discipline is not an issue; as they lose the first trades, they get eager to recover the losses, and quite often this "urgency" creates an undisciplined way of trading.
The main mistakes coming from undisciplined trading are:
- anticipating the entry points;
- not closing losing operations;
- closing winning operations too early;
- entering into a position even if there is no entry signal;
- increasing the value of the trade against money management principles.
What do people need to make money?
A good way of overcoming the problem of staying disciplined is to have a software that generates entry signals (without necessarily being 100% automated in processing the actual operations) or a robot that decides when to enter into a position and when to close it; by having a trading software or robot that will guide your trading, you will (probably) avoid trading in an undisciplined way.
Advantages of automated or semi-automated trading
No emotions
The first advantage and by far the most important is that you will not be emotionally vulnerable, provided you follow the software 100%.
You will stick to the principles of the trading style embedded in the robot or software code, and you will not vulnerable (or you will be much less vulnerable) to fall into undisciplined trading faults.
More trading signals and more trades
The software or robot will spot more trading signals than you and, if it is fully automated, it will make more trades than you manually processing the trades. In addition the robot can follow more than one pair and/or execute trades in more than one account.
Multiple pairs, multiple timeframes and multiple accounts is a normal situation for a trading robot, but almost impossible for a human being.
Automated trading means trading while you do other things
If the robot is a 100% hands-off software, it will trade for you anytime you want: whether you are working or having fun, during the day or during the night, the robot will identify and execute trades for you.
Trading Software or Robots
The main difference between these two tools is that with trading software you are much more active in determining the settings of the software and most importantly in executing the trades identified by the software on your screen, whilst the robots are fully automated systems which not only identify the entry points but also execute the trading orders on your behalf. If you prefer to have a more active part in the trading then you should choose trading software, if you prefer to earn or try to earn (robots as everything else are not foolproof) then you should buy a robot.
Article Source: http://EzineArticles.com/8838821
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