Forex_FNL2
Brokers
Automatic Systems Take the Fun Out of Trading Forex
Rate This Article:
2

Trading the foreign currency markets takes a fair amount of time no matter what system you use. When I first started trading, I found that I wanted to create a system using Metatrader that will trade itself while I was either in the classroom or on the golf course. I soon found out that I was spending more time writing code and tweaking my system than I would have done if I were manually trading my system and watching the markets with bated breath.

The real problem with my manual system was that during all of my tweaking and finally coming up with a system that worked moderately well, I was quickly learning to dispise trading. And I couldn't even call this trading. I would go out for a coffee, go to work, come home and look at my profits or losses, with no real reason as to why the market was moving the way it did. Needless to say, trading this way was making me ignorant to what was really driving the foreign currency markets. Let me reiterate, I was still spending plenty of time trying to tweak my system with a new and improved set of indicators and triggers.

Through all of this 'trading experience' I thought I was giving myself, I was actually digging a huge hole which I soon found hard to get out of. By this I don't mean losing gobs of money. I meant that I was confusing myself continually by trying out different systems that each had their distinct advantages. And one thing I never learned to control was how to program my system to be very careful around important news releases. Want to know why? Because that can't be programmed! The only way to deal with this is to turn of your system during the news so it doesn't trade. Well that is fine and dandy if you're not in a trade. But what if you're holding a pair and the news crushes it. If your system is off, then you can't even trigger to close the trade if you have an automatic sell in the form of a stop-loss.

So what about the mental aspect of this? Have you ever been on a beautiful golf course with palmetto trees blowing in the wind, where you shouldn't have a care in the world, and you can't help but have this gut feeling that you are getting killed in the market. All of this free time that I was giving myself by creating this automatic trading system was making me a paranoid individual with a good chance at going crazy. Now you see what the title of this article is automatic systems take the fun out of trading forex.

Now don't get me wrong, the main point of trading any market is to make money. But since we're going to spend so much time trading and learning the market, the time you spend should not make you paranoid and miserable. I have come to grips with this, and spend a wonderful dinner with my new bride last night not worrying at all about anything forex related. And last week I played an entire golf tournament with a good friend and did not once think about the market even though it was open. For me, this is true bliss and close to personal evolution. This goes along with my last article on how to recover from a bad trade.

So make trading and learning from these markets fun. I think life is way to short to spend any amount of time achieving financial success for your golden from something that is going to make you miserable in your prime.

Legal Disclaimer and Risk Disclosure:

 I am not a financial advisor. The opinions and suggesitons that I portray on this site are for entertainment purposes only and should not be used to invest real money. As with all investing, forex carries risk and you should consult a professional financial consultant before pursuing any investment opportunity.

This communication does not purport to be a complete statement of all material facts related to any company, industry, or security mentioned. The information provided, while not guaranteed as to accuracy or completeness, has been obtained from sources believed to be reliable. The opinions expressed reflect our judgment at this time and are subject to change without notice and may or may not be updated. Since we are not selling any products, all information posted on The Geared Investor is for entertainment and educational purposes only.

At the time of posting, individual stocks or companies featured are not owned as common stocks by the author of the article. It is not our purpose to recommend stocks, but to give a background so that you can you’re your own educated decisions. Past performance of any company should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which said offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Recipients who are not market professionals or institutional clients should seek the advice of their personal financial advisor before making any investment decisions based on this communication.

Post A Comment
* Indicates required information
Comment Title:
* Comments:
Nickname:
* Validation:
Comments 0 comments for this article
Newsletters
Register to receive the latest expert analysis, news and education:
Email:
Latest Blogs
Michael J. Panzner
I've highlighted news and other reports indicating that conditions on Main Street are far worse than your average Wall Streeter believes they are. Interestingly...
[Read More]
Michael J. Panzner
The "Money" section of USA Today has a cover story by Adam Shell, "Could Investors Fleeing Stocks Become a Lost Generation?" featuring insights...
[Read More]
Michael J. Panzner
In honor of today's single-positive-data-point-driven-triple-digit rally, I thought it would be a perfect time for another installment of "Scenes from...
[Read More]
Michael J. Panzner
Yes, I'm sure it reflects confirmation bias on my part, but it's hard to ignore Howard Davidowitz's thoughts on the state of the economy given that...
[Read More]
Michael J. Panzner
According to USA Today, "Government anti-poverty programs that have grown to meet the needs of recession victims now serve a record one in six Americans...
[Read More]