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Now, with the advent of the Internet and computers it has become relatively easy. Nearly every week there is a brand new forex automated system that’s being made available. Many of these programs are priced under $100. However, there are others that can cost up to $10,000. These expensive programs are usually only offered to select traders.
Why are forex automated systems so in demand at high prices?
This is the simple answer. Participants in all markets – including forex and stock trading – are motivated by the same thing. This is about greed, fears, the desire to enjoy a comfortable life, etc. While these are all general reasons, they have an important impact on the trading approach and mindset of every trader.
Many traders and authors that write on trading believe that even though fundamentals like CPI, interest rates, and employment numbers, etc. have an impact, the psychological aspect of trading is much more significant. While fundamentals like interest rates, CPI and employment data have an impact on markets’ movements, trading psychology is more influential. The belief systems of individual traders (or participants) have a significant impact on the market.
The concept is very important, as it shows that traders’ desires, thoughts, concerns, feelings, emotions, views, backgrounds, training, objectives, reasons, and so on, all affect their decisions. It impacts how the trader analyzes information, and then makes trading decisions that are based upon both the belief system and available information. These decisions involve what and when a trader should trade. They also include how much they expect to earn from the trade. Each trader’s decisions become orders. That is how the Forex market moves.
What a process! This has far reaching implications because, if accepted, markets can no longer be considered linear systems which could be analyzed using tools and techniques based in linear mathematics or statistics. As the majority of market movement is determined by psychology, using non-linear mathematical models is essential to explaining this movement. A multidisciplinary approach to the markets is necessary.
A computer is a powerful instrument that allows us to develop models much more complex and detailed than before. These models are then turned into trading software by programmers. Forex trading robots incorporate new discoveries from progressive science, including Quantum Mechanics and Chaos Theory.
A forex market with a large trading volume, many times larger than stock markets and futures exchanges is the best place to apply such interdisciplinary approach. These scientific advances are then used in the creation of trading systems to produce better and more profitable signals.
Spending extra on an automated system to trade forex is a good idea next time. This system provides much more accurate analyses than older linear models, which are only able to tweak data into the desired model. A system tailored specifically to your trading style will result.