It would be nice to trade Forex on Autopilot. Would you like a robot to trade for you in forex? Do you want to sleep while finding profitable trades, executing them and doing other tasks?
This is easy in the computer age. Nearly every week, we see the release of new automated forex trading systems. Some systems cost only $100. Other systems are far more expensive and range from $2,000 up to $10,000. But these systems can be expensive and often are only available to a select few traders – more hints.
Why is automated forex trading so popular and expensive?
Answer: It’s simple. These same motivational factors are also present in stock markets and commodity exchanges, along with forex trading. This is about greed, fear, and the desire to live a happy life. They aren’t specific to one particular trader but they do have an effect on the trading mindset.
A number of authors that write about trading believe fundamentals like interest rates, CPI figures, employment etc. are important. While fundamentals, such as CPI, interest rates and employment, have an impact on market movements, the psychological component of trading is much more significant. Markets can move based on the beliefs of each trader.
The concept is important. This is important because it means that the traders’ hopes, fears, and needs will be influenced by their desires, beliefs, skill, interest, or goals. The traders’ belief system and the information they have available will influence the way in which they analyze information and decide on trading. Decisions are made about what and when they invest in, their risk tolerance, exit and entry times, whether or not to purchase, sell and how. Decisions traders take determine the direction of markets and currencies.
The process is really fascinating. The implications are huge, as if we accept this, the markets can no longer be considered to be linear, and therefore, cannot be analysed with linear statistics or math. Non-linear models are needed to explain the dynamics of the markets because the psychological factors of trading have such a strong influence. It’s essential to have a multi-disciplinary approach when trying to grasp the market.
Computers can be a powerful and versatile tool. Today, they allow us construct models that are much more sophisticated than ever before. They are then turned into trading programs by the software developers. Certain automated forex trading systems integrate breakthrough discoveries of emerging progressive science. Quantum Mechanics and Chaos Theory are among the newer sciences.
Forex is an excellent market for such a multi-disciplinary strategy due to the volume of trading. Trading volume on Forex is higher than the trading volumes of stock exchanges or futures. Trading systems that use advanced science for their design produce more profitable and precise signals.
Consider spending more money next time on an automated Forex system which uses non-linear models and theories. This system is more accurate and reliable in its analyses than old linear theories, which only change historical data. This system is tailored specifically to fit your own trading style.