So how do you know if automated Forex trading is for you? Because of the risk involved, some Forex traders are a better match for the automated lifestyle than others. Here are five signs that automated Forex systems are for you.
1. You have risk tolerance. Automated Trading has its risks, too, so don’t bet the milk money, or Lactaid money for those who have a high risk tolerance but low lactose intolerance.
2. You don’t want to spend all day watching the market, and all night researching. Automated Forex trading is a lot like letting someone else monitor the market for you -- can you handle the idea of a virtual "third party" making trades from your account?. Trading any financial resource will require a lot of study and research time on your part, and depending on how you trade you may need to do ever more "bookwork". Automated Trading can be trusted to do this "researching" for you, to some degree. The better automated Forex trading systems are based on better research and are more customer friendly. However, are you comfortable with the idea of doing less research in an attempt to earn more money?
3. You'll be trading at least $5,000. Most of the automated Forex trading systems require fairly frequent trading to work properly. If you don’t have at least $5,000 to dump into the market, you may not have enough capital to participate in all that the automated system has to offer.
4. You're looking for better than average returns on little work. If you set up your automated system correctly, this system will have the ability to earn high returns without the massive amount of time and effort that most traders are forced to put in to make proper trades.
5. You want some insurance against poor trading. The fact is that some of you Forex traders just enjoy the act of trading, the excitement of the currency exchange market, and the potential high returns. If you choose to use an automated trading system to trade just a portion of your total account, you will have a "hedge" against failure. The portion of your investment controlled by an automated system improves the odds of success for your total account return.
If you're going to use an automated Forex trading system, be sure you understand the risks along with the benefits. To avoid the standard pratfalls of automated trading, you should keep an eye on your account as often as is possible, avoid "greedy" trading, and hedge your investment. If properly designed and implemented, automated trading systems can be just as accurate as manual trading, with less effort and more time to enjoy yourself. Away from the computer.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment