There's always been a argument about what kind of trading is better, automated or discretionary. Folks within the Foreign exchange online community read online trading reviews , trading articles, watch trading videos, and are always looking to get as much information and tools as they possibly can. The thing is that many of these traders become confused with the tremendous quantity of information available on the internet. On top of that, many times they are tricked by so named "Forex gurus" who many times don't even trade the markets and are actually just web marketers.

My team of traders and I have found that to be successful , a FX trader has to find a balance between automated trading and discretionary trading. You are about to learn 4 tips on how you can effectively combine automated FX trading with manual or discretionary trading.

Machines are simply machines and human intervention is needed:

The usage of technology has revolutionized our life styles and has transformed our world into a world of convenience. Due to this fact most people are always looking for instant gratification, nonetheless; Currency trading is the wrong place to look for it.

A lot of people think that buying a trading robot is going to transform their life and make them rich immediately. A trading robot might produce you decent profits but to really maximize its performance human participation is needed. The best method you can increase your automated software's results is through the implementation of discretionary trading.

Some of the most successful discretionary techniques that can be used to improve your robot's performance are: discretionary take profits, scaling out your positions, reducing a positions risk, among others.

Machines commit mistakes too! :

Automated trading systems are based on complicated mathematical algorisms that can be affected by any alterations you make to the trading system's variables. One example is, if you double the risk that the trading system takes per trade, this could jeopardize the results and even the money management strategy that the system uses.

How to use automation to put your emotions aside:

Automation can be extremely helpful because it allows you to automate the execution of your trades and even the risk control tasks involved in trading.

When you allow your automated trading strategy to measure the best entries, exits, stop loss levels, and take profit levels, you will be able to put your emotions aside.

Letting your emotions get on the way is a mistake that most FX traders make. When you take emotional trading decisions you are more prone to make unreasonable decisions and take higher (and unnecessary) risks.

How to put together a balanced trading plan and approach:

Putting together a successful trading plan that has a perfect balance between automation and discretionary trading is simpler said than done. Having said that, one can accomplish this by just modifying the trading system to his/her own individual trading targets and personality,

Make sure to always conduct proper backtesting, read online trading reviews, and be constantly developing your trading skills. As I always tell my traders, when you put it all together making money from the Forex becomes second nature.

Regards,

Jay Molina

Pro Forex investor and Educator

Published at seo-marketing.shoppingmallhk.com