Do you want to know how to make money trading foreign currency on autopilot. You want your account to be traded by a robot? Do you want to make trades even while sleeping?
It is relatively easy to do now, thanks to the Internet. A brand-new forex automated system is released almost every week. These programs can be purchased for less than $100. Other programs cost upwards of $10,000. Some of these expensive programs only offer them to select traders – helpful hints.
Why do forex automated systems command such high prices?
It’s simple. The same factors drive participants on all markets including stock and forex trading. The motivations are greed, fear, a desire to live a comfortable and happy life, etc. All of these reasons are not specific, yet they can have an impact on the mindset and trading strategy for every trader.
Many traders, as well as authors who have written about trading, believe that while fundamentals, such CPI rates, interest rate levels, and employment figures, etc., do impact the market, it is psychological factors that are more important. The psychological side of trading has a much greater impact. Although fundamentals, such as CPI, interest rates and employment, have an effect on the markets, the trading psychology plays a more significant role. Markets are influenced by the belief systems of traders or participants.
It is of great importance, because it shows how the traders’ beliefs, wishes, worries, feelings and emotions, their views, experiences, education, objectives, motivations, trainings, etc. all impact on their decision-making. This impacts on how traders analyze information. They then make trading decisions which are based both upon their belief systems and information available. They include what and how a trader trades. The decisions include the amount of profit they hope to achieve from the transaction. Orders are created from the decisions made by each trader. The Forex market is based on orders.
It’s a complicated process. It has wide-ranging implications, because if this theory is accepted, markets cannot be considered linear, mathematical systems, which can be analyzed with tools and techniques that are based on linear statistics or mathematics. The majority of the market’s movement is driven by psychology. Therefore, non-linear mathematics models are essential for explaining that movement. Markets require a multidisciplinary approach.
The computer allows for the development of models that are much more sophisticated and detailed. Programmers then turn these models into trading software. These robots use new science discoveries such as Quantum Mechanics, Chaos Theory and Quantum Mechanics.
This interdisciplinary approach is best applied on a Forex market that has a high trading volume. It’s many times bigger than the stock exchanges and futures. They are then applied to the development of trading strategies that generate better, more profitable signals.
It is worth investing in an automated trading system for forex the next time. This system offers much better analyses than linear models of the past, which could only adjust data in order to create a model. This will give you a system that is tailored for your particular trading style.