Many people think that automated for-ex system trading is easy and that they can make quick money in a short period of time. That is why only 5% of the traders are successful and the majority fails in the For-ex market. It is true that automated for-ex trading system is designed to monitor markets 24 hours and report best signals from the market, but you still have to have basic knowledge about for-ex trading in order to guide your online partner. Besides that, a majority of people lacks a mindset, essential component for successful For-ex Trading.
We listed 5 capital factors without which automated for-ex system trading is destined to fail:
1. Discipline – This is a very important factor. Whether you are able to maintain successful automated for-ex system trading in the long run or not, will greatly depend on this. As a disciplined and successful trader, you have to follow the rules of an automated for-ex system trading and avoid much of experimenting. At the same time you should learn not to react to any signals appeared in the trading system blindly. It is very important to follow market trends and understand certain signs pointing which way markets are destined to go in near future.
2. Trading Psychology – It is well known that emotions are not always good partner in automated for-ex system trading. The inability to control the greed could lead to a downfall of your trading career. If you combine this with discipline, you have to adopt strategy to always be satisfied with the profit target that you have planned and forget about the losses that you incurred in a failed trade. Your automated for-ex system trading carrier is not ending with one lost trade. There is always brighter tomorrow and next winning transaction.
3. Fear of loosing trade – Another potential bad habit of trading psychology is the fear of losing a trade. That means that people may cut losses earlier or later, which can have very negative impact on automated for-ex system trading in a long run. Leave it all to the target profit and stop loss that you have set, which means that you are consistent in everything you trade. If you think that you are not capable of accepting losses you should consider another industry.
4. Money Management – Automated for-ex system trading is based on philosophy how good you manage your money. You should never trade all your capital at once, but instead only the amount that you can afford to loose. Even it sometimes looks kind of scary, part of successful strategy is to plan on how much are you willing to risk per trade. It is advisable not to exceed 5% of your trading capital per trade. This will ensure your ability to accept some losses and still have enough capital left for trades that will offset these losses.
5. Consistency – It is imperative in automated for-ex system trading to be consistent in the all above-mentioned factors. Only if you apply all of them can you expect to make profits in automated for-ex system trading in the long run. It happens quite often that a for-ex trader makes a huge sum of profits in a short period of time, but if he is not able to resist performing large risky trades, his business is going to fail.
If you are just starting as for-ex trader it might look little complicated to follow all these rules but once you learn basics of automated for-ex system trading, you will see that it all makes sense and that it is a proper way to build successful trading carrier. Now it is even easier with last generation of automated for-ex system trading robots.
Gordon Miles, 20 year veteran in for-ex trading, is giving you opportunity to safely sail through these tough times by focusing on small movements in the market that are going to occur regardless of whether or not the markets crash or the economy is in recession. Automated for-ex system trading places buy or sell orders and capitalize on falling market movements.