Robot trading programs are a great asset to professional forex traders and the only realistic way that most new traders will ever make a profit but why is that? Forex trading robots are unlike any other trading systems because the markets they operate in are so different from others.

Stock prices can go up and stay up, Interest rates are the same way, ditto for bonds. Most other investments are linear. Their direction of movement usually dictates what the larger trend will be. That’s why Martingale strategy – Where you double up after each loss fails miserably with other investments but works almost magically with Forex.

Currency prices as a normal course of business ratchet up and down fairly regularly. So double up, cashout, double up, double up, cashout works fairly regularly in Forex. Professionals don’t have to play the Forex markets in this manner because they are often privy to information and data feeds that you will never see. They can make long term bets on the strength or weakness of a currency because they often have a view of the ‘Big Picture’. You won’t.

A pro trader will easily out trade any robot. They have technology, experience and exclusive inside information on their side but there is an equalizer. It’s technology. A robot trader programmed with proper strategy can almost Brute-Force their way to profits because it’s constantly in the market 100% of the time lurking and waiting to pounce.

Forex is 5.5 days per week, 24 hours per day. While a human that’s armed with strategy may know to double up after the currency moves 20 points against them, will they? Where will they be when its time? Sleep, in the bathroom, driving to work, too tired to react? It’s amazing how such an intellectual pursuit can become so physically draining.

My research showed that the information gap between professional traders and amateur traders is the main reason for lack of success. But just as important was the fatigue factor in hobbyist traders that traded using a technical system that required them to watch the screen 24/7.

Fatigue? Yep, tired traders. Most know what to do but since they have to be on duty to execute it they always eventually burn out. Hmmmm, what can execute a pretty brainless strategy, never get tired, never go off duty and never go to the bathroom? It’s not hard to see that this is the type of task that computers were created for.

I’ve been researching and programming Forex systems for a while and it amazes me how it’s often the simplest of strategies that have the most success and Martingale is so bone-headed simple that its very easy to get a computer to understand and execute it.

Whoever would’ve thought that the best strength of robot traders would be the same as Fido’s. Not smarts, not intelligence or even a fancy formula like E=mc2. Nope, to be your best friend it just has to be a tireless watchdog of your money.

By: Jarvis McCrary

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4xdaytrader2 asked:

Quick review of how I Day trade the forex markets

Jim asked:


I’ve got a full-time job but I’m interested in trying out swing trading on the forex markets (just stick to the major pairs right row)… any recommendations on a relatively easy to learn and inexpensive swing trade system? I’ve got MT4 but I’d be willing to switch to a different platform if necessary. Thanks in advance.

5EMAsTeam asked:

www.5emas-forex-trading-system.com – Get access to our exclusive free Forex video lessons and learn unique strategies for trading the forex markets!

At the best of times Forex currency trading can be a risky business with a huge potential for profit or loss. As a fulltime trader i have seen the best and the worst that the forex market has to offer, the dizzying highs of large wins, and the gut wrenching lows of people going bust.

You might be a forex trader yourself, or maybe you are just curious about how forex markets work, whomever you are, you need to learn how to seperate the legit forex brokers from the scam merchants. The internet has a great deal of genuine forex dealers offering quality services, it is also unfortunately infected with just as many thieves dressed up as companies who will gladly take your money and then dissapear. This fear of being taken advantage of puts a lot of people off the idea of trading forex, this shouldn’t be the case.

Now there are a few key differences between stock markets and forex markets that you are going to have to learn:

1. Forex has no centralised exchange house.

2. Forex trading is 24/7.

3. Forex is a largely unregulated market.

Looking at that list, it kind of seems that the forex market is akin to a wild west town full of outlaws and gunslingers. In this market there is noone to complain to, noone who will hold your hand. So how can you find the genuine dealers amid all the garbage? Do not trust any broker whose reputation cannot be confirmed, and whose company is not tied to the forex market.

The attraction of the forex market can be overwhelming. The scent of huge profits often overpower the common sense of the average person. They enter eagerly, just waiting to invest their life savings.Lying in wait are the scammers with huge promises, they capture the new investors money, and suddenly dissapear.

The good news is, is that many genuine forex brokers do actually exist. Easy-Forex, Oanda, and many more have proven track records that justify their positions in the market. Usually if a company is small, has no affiliation to forex or a financial institution, then stay away. Also a word on looking for reviews about brokers online. You can find honest reviews on forex brokers online, however there seems to be a habit of late of competing forex companies, and/or traders engaging in negative marketing of each other. Dig deeper and you will usually find an honest answer.

So remember:

1. Validate the companies reputation.

2. Make sure they are tied to the forex legitimatly.

3. If the company is small and unheard of, stay away.

4. Finally if the broker has a proven online track record, a legitimate financial institution affiliation, and a few good reviews, give them a try.

My ultimate advice is, if unsure, invest the smallest amount you can, and find out for yourself. This is how i usually used to find brokers, and it worked for me.



By: Forex King

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