What is automatic Forex trading?
“Only people who have made money from automatic trading systems are the system sellers.”
Imagine that an “alien” tries to sell you an automatic system for driving your car. Just pay him a few hundred dollars for computer based software, install it for 50$ in your local car service, and instead of driving your car, read a daily newspaper.
You can take a nap in the drivers seat on your way to work or even back home. You would probably laugh the stranger out of your way. But, would you laugh if he tried to sell an automatic trading system?
Traders who believe in the autopilot myth think that the pursuit of wealth can be automated. Some try to develop an automatic trading system, while others buy one from the trading software experts.
Men who spent years honing their skills as lawyers, doctors, or businessman plunk down thousands of dollars for canned competence. They are driven by greed, laziness, and mathematical illiteracy.
If you could buy a successful automatic trading system, you could move to Tahiti and spend the rest of your life in leisure, supported by a stream of checks from your broker. So far, the only people who have made money from trading systems are the system sellers.
Airlines pay high salaries to pilots despite having autopilots. They do it because humans can handle unforeseen events. When a roof blows off an airliner over the Pacific or when a plane runs out of gas over the Canadian wilderness, only a human can handle such a crisis.
These emergencies have been reported in the press and in each of them, experienced pilots managed to land their airlines by improvising. No autopilot can do that. Betting your money on an automatic system is like betting your life on an autopilot. The first unexpected event will destroy your account.
Every winner needs to master three essential components of trading: a sound individual psychological trading system, and a good money management plan. These essentials are like three legs of a stool – remove one and the stool will fall, together with the person who sits on it. Losers try to build a stool with only one leg, or leg, or two at the most. They usually focus exclusively on trading systems.
Your trades must be based on clearly defined rules. You have to analyze your feelings as you trade, to make sure that your decisions are intellectually sound. You have to structure your money management so that no string of losses can kick out of the game.
The market is an extremely cruel field of battle. Someone wins exactly what you lose and vice verse. It consists of traders who look for ways to take money away from you instead of pouring milk into your mouth.