4 years of Manual Forex Trading, and why I was beaten by a Robot

July 10, 2008 - PRLog -- Day trading in the Forex market can be both stimulating and stressful. With trading of currencies occurring in such short time spans in this type of trading strategy, you have to keep on the ball at all times – otherwise, you’ll end up losing your shirt. Other trading strategies are available (i.e. scalping, swing trading, long-term trading), but day trading can offer you real excitement and some big profits if done properly.

Don't get emotional
Whether you’re investing in the stocks, real estate, or the Forex market, you should maintain a level head at all times. If you bring emotion into the equation, it can negatively influence your trading results. That’s especially true in Forex day trading, as the prices constantly change as positions are opened and closed within minutes, and even seconds at times. If you don’t stay alert, you’ll trade a bad deal or miss out on a great opportunity.

For example, if you place a trade to sell a currency at a certain rate and one hour later the bid price (rate at which you can sell the currency at) substantially increases, you might be overcome with emotion that could negatively effect your future trading. On the other hand, if you buy a particular currency and two hours later the ask price (rate at which you can buy a currency at) goes even lower, you’ll also be pretty upset. In both situations, it’s best not to harp on “what you should have done,” but how you can learn from these mistakes. Otherwise, you’ll be stuck in a negative frame of mind that can cloud your decision making process in the future.

Besides punishing yourself for past mistakes, market greed is another potential killer to successful day trading. If, for instance you happen to be on a winning streak and you believe that the market will continue to go in your favor. The trading signals say otherwise (i.e. overall economic indicators weakening), but you’re so caught up in your winning ways that you forget to pay attention to the numbers. You place your trades even though the current indicators are not in your favor and you start to bleed cash. What you should next time is to walk away from the trading and end the day with a profit.

The Robot Rebellion
The future of trading is to look to the expert advisor (robots) that can automate your trading. They take emotions out of the equation and free you from your PC. Robot traders such as shark are producing consistent results over time with consistency.

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Paul Heap is the webmaster behind many sites, including Forex EA Review, and robot automated trading systems

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Paul Heap is the webmaster behind many sites, including http://www.forex-ea-review.com and http://www.myfxtools.com/EA.html robot automated trading systems.