Forex Secret Trading

Foreign currency Exchange (FOREX) market is the largest and most liquid financial market in the world. The average daily trade in the global FOREX markets more than U.S. $ 1.9 billion (Source: Triennial Central Bank List of Foreign Exchange and Derivatives Market Activity by the Bank for International Settlements (BIS) conducted in April 2004, and published in March 2005). These huge funds are traded by governments, banks and large institutions. For a comparison, thelargest equity market on the Earth – NYSE Group (The New York Stock Exchange), has a daily trading volume of approximately $ 86,8 billion (Source: NYSE Group, Inc. 2006). FOREX has a 18.4% average growth per year since 1989. It offers the trade, 24 hours a day, five days a week, non-stop over. This kind of massive fluid and a long uninterrupted trading hours mean that under normal circumstances there is no problem entering or leaving a trade.

However, in thethis huge market, as the story goes, at least 90% of new FOREX traders lose all their money in their first 3 months of the case. Why? Most losing traders who inquire about FOREX trading is very intelligent, they just lack the right tools, the "Secret Weapons" to win. They will not be beaten by others made, they were simply beaten by him, by the man 'weaknesses.

Speaking on the mens' weaknesses, let us list some of the following:

1. What is thefirst major weakness of man? When I say it should be "greed", nobody would disagree? Many times we have received 1% profit yet, but we feel it is not bold enough. We want more, 2% or 3% will be better. While the profits actually go to the 3%, we will think how about 10%? Not enough forever. But the market is so volatile, especially in the Forex market, we often meet this depressing situation: in the profit turns negative from positive. and this form of depression occurs again and again.2. Fear. All people have fears. In Forex trading, is easily jumping or currency dropping hundreds of pips. Some people can make sure how the market goes. In the Forex market, people who have the leverage used to trade, from 50:1 to 500:1, leverage will increase the profit or loss from 50 times to 500 times. Leverage is the wonderful feature of Forex, and this fear leads people's hearts too. If the market goes against people, big Drawdown come their fear to come.Is there anyone not afraid to lose money? Under the pressure of fear, people easily and often make wrong decisions, stop loss too soon, you will soon regret. 3. A lack of confidence. Looks better than fear, huh? But it is still not a good thing. Many times the man was made so happy when they see a slight profit in their accounts. It is worrying that if the profit turns into loss? People always have a very small profit and run, then disappointed when they see the market going further and further alongthe right track. If they were convinced, they would have made it ten times or even a hundred times from profit.4. Hesitation. Not only newbies, but also old hands easily hesitate to intervene in the Forex market. You've probably heard the saying "past performance does not predict future performance is not." Even a very experienced trader who has made many successful transactions in his / her history, while he or she is facing a new situation, should think twice before taking such an easy decision: Buy or sell? Fornew or amateur traders, they need no more time to think, and this kind of hesitation they always lead to confusion and lack the best and vlietende chance.5. Weariness. How many people can keep working for 24 hours? No sleep, no rest? How about 48 hours, 72 hours, etc.? Even an iron man could see his eyes to computer monitor to use his brain thinking fast-changing questions, and hands the calculation of complex formulas, day and night, 24 hours a day, 6 days a week, non-stop. In particular, noerrors allowed!

Nobody can!

None!

No doubt!

Will not mention the Super Man not. He also weariness.

6. Negligence. Have you ever had trouble just because of a small negligence? as a wrong bus has missed an exit on the freeway, a wrong number dialed, misunderstood boss' order, ignored a no-parking sign is omitted a whole page of questions in an exam, left Resume at home, while an essential maintenance, misspelled a word in a quotation form for a VIP client, etc. Hey, man,When was the last time that your mom's birthday, or even worse forget the wife, or the worst, girl friend's? Mama Always forgive your negligence. Woman … well, it depends. Girl friend? Huh, you want good luck.

But unfortunately, in the Forex market, no one will forgive your negligence, even yourself. Any negligence must be punished! You could get a margin call, just pennies left in the account, perhaps only because a small omission.

7. A lack of discipline. They always think that we are smarteras machines. Sure we are. Not only we were smarter, we have the freedom. But everything has its own nature, character, and rules. Line means discipline. If we only feel smart and released into the Forex trading decisions based on our feelings or knowledge alone, and ignore the discipline, there will be endless disasters await us ahead. Forex trading is like fighting in the war, soldiers can survive in a war without discipline, and traders in Forex market.While we have to stop loss that we should cut and run, despite how bloody and painful it is when we gain, we can hate the profits should not take is too small. Discipline is discipline, perhaps a few Smarties can win a while, but only those people can keep obeying discipline forever forever.8 can win. Inconsistency. Long or short? buy or sell? prosperity or depression? over bought or sold more? high or low? support level or resistance level? fundamental analysis or technical analysis? including automated trading or manual trade? etc. There are too many inconsistent news, facts, information and methods, strategies in the Forex market easily cause human traders make inconsistent judgments and decisions. And this inconsistency will cause only one same result: failure!

To overcome this terrible weakness of man, people have developed many methods. One of them is called "Automated Trading." Automated (or Automatic) Forex> Trade means to trade Forex (Foreign Exchange) any trading systems, applications, software or robots using MetaTrader MT4 platform it is referred to as' Expert Advisors – (by EA), without a human to physically act. An automated trading system is a group of specific rules and parameters governing entry and exit points, with the ability to generate both signals and execute trades automatically. An EA is an automated trading "robot". Robots can beatman to have played chess, EA robots can beat people on FOREX trading also.

Programmers think many components as they synthesize an automated trading system or EA robot, including: Nature of the market, Mathematical Modeling, Time Frame, Input Signals and Exit, Stop Loss Trigger develop and Profit Target, etc. Once the system is created, they not back testing and forward testing strictly in both demo and live accounts. A fully automated trading systemcreated in this manner would be able to analyze the market independently, working entirely on his own and constantly generate signals, auto-feed in a trading. Alternatively, developers can design the system as a sort of semi-automatic 'whereby users can be warned that the commencement, Exit, Stop Loss or Take Profit trigger occurs. Alerts can be audible through the computer to send e-mail address or even sent as a message to phone. Once the user confirms, the robot will obey the orderThe end of the trade.

There are many advantages in Automated Forex Trading, including:

1. Automated trading is executed by the computer. Today, computing and information technology has developed to a very high level. Computer calculations can be thousands of times faster than humans perform workout logical formulas without error and store memory at incredible speeds with flawless accuracy.2. Taking the emotion out of trading. In contrast to humans, aautomated trading system will never by greed, fear, hesitation be wrong, and inconsistency. This is just the trade mechanically (but fully programmable), unaffected by a trader's psychology. The performance is based on set criteria and disciplines. Sure, it reduces the risk of panic trading .3. Automated trading can take trades day and night, nonstop, no fatigue and negligence. EA robots their owners free of the necessity of fasting in front of the computer at alltimes. Once an effective system is developed and optimized, it can be left at the end automatically and independently. A successful automated trading EA robot will allow its owner to focus on the optimization strategies and money management rules rather than constantly watching the market.4. Computers can have several programs to run simultaneously, so that we can automated trading EA robots used to take several synchronized trades. This means that more of conditional entries may includeand exits, profit targets, protective stops, trailing stops, and much more in our strategies, and they all automated at the same time. This powerful feature can help to achieve our return on investment to increase and reducing risk.5. For the day, made some short term trading fans, automated trading robots are very useful tools to deal with a high frequency of trading using tick data. Day trading keeps traders are exposed in the market very soon, so sometimes it's safer than a longterm trade, but it is really difficult for a man to handle. But for the automated trading EA robots, it is just a piece of cake. 6. Does not matter long or short term trading, Forex market is always volatile and fast waves, the only automated trading afford faster identification of signals and responses to them. No doubt, computers will typically human beings at the speed of the identification of a trading signal and the entry and execution of the beatcorresponding orders. Not any more missing a trading opportunity.

Automated trading is not perfect, and EA robots can think instead of the man. If the programmer's skills at a low level, or the strategy or concept is untenable nonlogical, the corresponding product fails. But practical experience shows that a high quality automated trading system is always some kind of financial success for his owner to work on the Forex market guarantee. Thelatter fact is: in the Automated Trading Championship 2007, a global competition, all participants used EA robots, the champion won 1204.75% gain, won the runner up 450.42%, and third place won 299.45% , just within 12 weeks.

Is not that amazing?

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