There are two major pitfalls associated with being involved in self directed trading these are poor money management and the emotional factor. The emotions are that are fatal to the success of this are greed and fear. They stay in the trade too long as they either are greedy or the get out of it as they are scared.
The automated system takes this out of the equation. Trades are carried out with the assistance of exit and enter points that have been set up within the program. A third negative to non-automated dealing is time. Automation takes care of this quite nicely. For people who wish to trade in countries that have different business hours, this is also ideal.
This form of dealing is for buying and selling on the forex markets twenty four seven. This is passive income at its best as you can spend your time elsewhere while money is being generated passively.
Behind the scenes, expert advisers are working on your behalf and in line with the instructions you have given. You will be able to preset the boundaries and the system will operate in line with that. This permits the system to enter and exit precisely when you want it to.
You are able to set numerous parameters within the automated forex trading system. These include your rules for trading, price level proximity, technical indicators, averages, price points, price patterns and market trends. All of this gets you extra income and more time to enjoy things you like most.
1. What type of automated system would you be interested in?
Basically, there are 2 types of systems available in the market. The first one is an automated signal system. This system produces a forex signal for the trader to enter or exit a trade based on predefined set of market conditions. The trader will have to monitor the system frequently for trading signals and enter his or her order immediately. The second type is a fully automated forex system. The trader need not enter the orders as this is done automatically by the system once preset market conditions has been detected by the software.
2. How extensive has the software been tested?
There are several systems that have little or no live trading results to report. They only offer simulated, demo trading results or inadequate live trading results of only a month or less. You should look for those that have at least 3 months to preferably a year of live account trading. Also, it would be much better if these trades were done over multiple accounts, brokers, and currency pairs. In this way, you can be reasonably sure of the robustness of the system.
3. How many currency pairs is the system optimized for?
Some fully automated forex systems are optimized for only one or two currency pairs. This would limit your trading opportunities because sometimes currency pairs may become too erratic for trading during a period of time. If the system is optimized for more currency pairs, then you have more trading options available. Preferably, it should be optimized for at least 5 currency pairs. Of course, the more the better.
4. How simple is it to use the system to trade?
The system should be simple to set up and use for both the experienced and new currency traders. One should be able to install and use it to start trading within 15 minutes with the default setting available in the software.
Automated forex system trading is meant to be simple enough that even someone starting out in forex trading can start making profits while learning the ropes.