PoztmanWorld Economy

The Foreign Currency Exchange (FOREX) is the largest and most liquid financial market in the world. The average daily turnover in global foreign exchange markets more than U.S. $ 1.9 trillion (Source: the Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2004 and in March 2005) released . These large funds are the governments that are traded banks and large institutions. For comparison, the largest campMarket 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 trading 24 hours a day, five days a week, non-stop over the Internet. This type of liquid and solid long uninterrupted trading hours mean that under normal conditions there is no problem entering or exiting a trade.

But in this huge market, asthe story goes, at least 90% of new FOREX traders lose money within the first 3 months of trading. Why? Most traders lose, ask FOREX market are very intelligent, they simply do not have the right tools to win, "Secret Weapons" to. You are not undercut by other traders, they are easily beaten by himself, by human weaknesses. "

Speaking of human weaknesses, let us list some of the following:

1. What is the first major weakness of man? when I say it should be "greed", there is someone of a different opinion? Many times we have 1% profit, but we do not think it's thick enough. We want more, be 2% or 3% is better. While the profit really only 3%, we think, as over 10%? Not enough forever. But the market is so volatile, especially in the forex market, we often encounter this depressive situation: profit is positive from the negative range. and this kind of depression happens again and again. 2. Fear. All people are afraid. In Forex> Trade, currency rate simply jump or fall, hundreds of pips. Few people can be sure what will go to the market. In the forex market, the people all the levers used in the trade, from 50:1 to 500:1, a leverage effect on the profit or loss from the 50-fold magnification to 500 times retrieved. Leverage is the wonderful quality Forex, and it brought fear into the hearts of men. If the market against people, comes great loss, comes the fear. Is it not frightening anyone to lose money? Under pressure from theFear that people easily and often the wrong decisions, stop-loss too soon, then soon regret. 3. Lack of confidence. Seems better than the fear, is not it? But it is still not a good thing. Many times human traders are so happy when they see a little profit on their books. You are worrying, what if the gain is a loss? People have always conducted a small profit and then regret, while they see the market goes on and on are on the right track. If they were confident they would ten haveOr even a hundred times profit.4. Hesitation. Not only beginners but also old hands slightly reluctant to act in the Forex market. You have probably heard the saying "past performance does not predict future performance. Even a very experienced traders, many successful trades in its history, while he or she faces a new situation, thinking must be twice before so Now make a simple decision: to sell or have? For new traders or amateurs, they need more time to think, and this type ofHesitation, she always leads to confusion and lack of the best and most volatile chance.5. Fatigue. How many people can it work for 24 hours? No sleep, no rest? How about 48 hours, 72 hours, etc? Even an iron man can not observe his eyes, computer screen, his brain is thinking and rapidly changing issues and his hands calculation of complex formulas, day and night, 24 hours a day, 6 days a week non-stop. In particular, no mistakes allowed!

No one can!

None!

No doubt!

Donot to mention the Super Man He has the fatigue.

6. Negligence. Have you got problems just because a small negligence? such as the wrong bus missed a highway exit to chose a wrong number, order misunderstood boss' ignores a parking sign, a whole page of questions omitted in an examination, left at home during an important conversation, false written resume a keyword in a form for a VIP client, etc. Hi, man, when was the last time you forget your mother's birthday, or even worse, theWoman, or the worst, the girlfriend? Mama always forgive your negligence. Ms … That depends. Girlfriend? Huh, wish you good luck.

But unfortunately, in the Forex market, no one will forgive your negligence, including himself. Negligence must be punished! You can get a margin call, just in cent account is allowed, it can, just because a small negligence.

7. Lack of discipline. People always think that we are smarter than machines. Sure we are. We are not only intelligent, we have freedom.But everything has its way, signs and rules. Article stated discipline. If we are just smart and feel freely in foreign exchange trading, decisions about our feelings, or knowledge-based society just to ignore discipline and there is endless disasters, we are waiting ahead. Forex trading is like fighting in the war, soldiers in war can not survive without discipline, neither trader in the Forex market. Although we have lost, we need to cut and run to stop, though, is how bloody and painful it ifWe have to take profit, which we can not hate the profit is too small. Discipline is discipline, perhaps a few smarties can win for a while, but only the people can always obey discipline can always bring forever.8. Inconsistency. In the long term or short term? sell or buy? Prosperity or depression? longer be bought or sold? high or low? Level of support or resistance level? Fundamental analysis and technical analysis? including automated and manual trading trading? etc. There are too many incompatibleNews, facts, information and methods, strategies, in the Forex market, easy-to-human traders make inconsistent judgments and decisions. And these contradictions only cause an identical result: Error!

To overcome these terrible weaknesses of human beings, humans have developed many different methods. One of them is meant as an "automated trading." Automated (or Automatic) Forex Trading, Forex trading (foreign exchange), with some trading systems, programs, software or a robot(on Metatrader MT4 platform is known as an expert witness – EA), without a person physically trade. An automated trading system is a set of specific rules and parameters for inputs and outputs, with the ability to generate both signals and execute trades automatically. An EA is an automated trading "robot". Robots can beat people in games, can people at EA Robots FOREX trading also plays.

Programmers consider many componentssynthesize while an automated trading system or EA robot, for example: Nature of Market, Math Modeling, Time frame, entry and exit signals, stop-loss triggers are developed, and profit target, etc. After the system created, they back testing and forward testing rigorously both in the demo and live accounts. A fully automated trading system like this way will be created to analyze independently in the market to continuously generate entirely on their own work and signals auto-execute in a trading platform. Alternatively, programmers can design the system as a kind of "semi-automatic" under which notifies the user when the input, output, Stop Loss or Take Profit can trigger occurs. Alarms can be heard through your computer, to e-mail address, or send a message to a mobile phone. Once the user confirms, then the robot will obey the order to stop trafficking.

There are many advantages in Automated Forex Trading, such as:

1. Automated> Trade will be executed by computers. Today, computer science and information technology have been developed at a very high level. Computers can perform calculations thousands of times faster than humans, workout logical computations without error and store memory at incredible speeds with flawless accuracy.2. Under the emotion of trading. In contrast to humans, an automated trading system never misguided by greed, fear, hesitation and inconsistency. It just trademechanically (but fully programmable), unaffected by the psychology of a trader. It lists the criteria and disciplines. Obviously, this reduces the risk of panic trading .3. Automated trading can trade day and night, non stop, no fatigue and carelessness. EA robots to their owners free of the need to get stuck in the computer at any time. Once an effective system has been developed and optimized, they can be left to the fully automatic and independent. Asuccessful automated trading EA robot allows its owner to the optimization of strategies and focus on money management rules, rather than look at the constantly market.4. Computers can simultaneously run multiple programs, so we can use automatic trading EA robots to take multiple synchronized craftsmanship. This means that we can have multiple conditional entries and exits, profit targets, protective stops, trailing stops and much more in our strategies, and they are all in the automatedsame time. This powerful feature can help us maximize our return on investment, and reduce risk.5. For day traders or other short-term trading fans Automated Trading Robots are very useful tools to provide high frequency trades with tick data. Day Trading keeps traders on the market a very short stay, it is sometimes safer than long-term trade but it is really difficult to handle for a human being. But for automated trading EA robot, itis only a piece of cake. 6. Regardless, short or long term trading, Forex market is always volatile and fast waves can only automated trading signals provide faster identification of and reaction to them. No doubts, computers in general, the people beat in the speed of identification of a trading signal and the entry and execution of commands. No more missed trading opportunity.

Automated trading is not yet perfect, and EA robots cando not think, but by humans. If the programmer skills are at a low level, or the strategy or idea is untenable nonlogical is the appropriate product to fail. However, practical experience shows that a high quality automated trading system always ensures some kind of financial success to work for its owner Forex market. The latest fact is used in the Automated Trading Championship 2007, a world of competition, all participants EA robots, won the Masters1204.75% gain, won the runner-up 450.42% and 299.45% for third place, just within 12 weeks.

Is not that amazing?