Currency Trading Tips A Dangerous Disadvantage of Automation

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Currency Trading Tips: A Dangerous Disadvantage of Automation :

Currency Trading Tips: A Dangerous Disadvantage of Automation By: Jay Molina From: http://myfxinvestment.com/

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In this currency trading tips article I'm going to compare an everyday situation with Forex trading automation. As I was resting and relaxing this weekend I was doing the same home chores I always do on the weekends. One of them is laundry. I put my clothes in the dryer and walked away. I came back later that day to grab one of my favorite shirts since I was going out to have dinner with some friends. As I pulled my shirt out of the dryer I realized that it was still soaking wet and to make a long story short I was late to dinner and didn’t get to wear my favorite shirt.

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Why am I telling you this? Because this make me realize that automation cannot always work on its own without the intervention of a human being. Just as my dryer malfunctioned and didn’t dry my shirt, your automated trading system might mess up and not take a trade or take an erroneous trade (What can be most of the times detrimental to your account). As a trading strategy developer I have seen trading robots fail and not do what they are supposed to do. In this article I want to show you 3 examples of a Forex robot mess up and then teach you how to fix it and react to it.

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#1 The robot took a mistaken trade: This has happened to me. I turned off my computer and when I turn it on and open my trading platform the robot takes a trade it wasn’t supposed to. You need to understand that a FX trading robot is a machine, just like a TV or a computer. It would only respond to the instructions you give to it, it doesn’t react on its own. This is when human intervention is needed. What to do: When my robot has taken a trade by mistake I immediately close the trade. Don’t let a small mistakes turn into a large loss. #2 The robot didn’t take a trade: A rule of thumb you should always remember as a trader is to NEVER chase a trade. If you missed a trade you need to accept you missed it and move on. There will be more good trading opportunities coming your way if you are patient enough.

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#3 I am having trouble with a robot but I can’t contact the creator : If you decided to purchase a trading robot and you are having trouble with it you should turn it off until you can get it fixed. I have seen traders who let a robot (that needs to be fixed) trade their accounts and end up losing lots of money. A problematic robot should always be turned off and put on hold until you can get it fixed.

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As part of my currency trading tips: Always remember that automation is supposed to assist you with your Forex trading ,NOT replace you. A good trading system will still need a disciplined Forex trader who can execute smart trades and who is able to adjust his trading plan to an ever changing market such as the Forex. Forex trading can be tricky… Learn the same trading techniques that Professional Forex traders & money managers use to make millions. You can now get free access to my $2,000 FX course, the Smart Trader Pro trading course! Click here to get your free copy== > http://myfreeforexcourse.com/ To your trading success, Jay Molina Pro Forex Trader & Educator

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