Why Do Forex Traders Fail?
Why do Forex traders or just any trader fail? Is it because their knowledge of the markets is lacking? Bad luck? The market is rigged? The market Gods are against him? No it’s actually much simpler then that, human emotions. Although human emotions may be beneficial in many parts of our life, in trading it can mean disaster. Greed, fear, doubt, lack of self-confidence or over confidence and a host of other cause havoc in our trading and many times wipe the trader out.
He may have the best Forex strategies and be a master of technical analysis, but those pesky emotions gets the best of him. Sure there are traders that can control these and trade as if they had ice in their veins, but the majority are not so fortunate. What is the solution to overcome this dilemma? Become an Auto Forex Trader. What is an auto Forex trader you ask? It’s a trader that uses technology to control or override the emotions that otherwise cripple him or make him exercise bad judgment.
An example would be placing the proper stop losses, even if he made a judgmental error in the direction of his trade a strict stop loss would subject him to a minimal loss which he can easily recover and trade another day. The auto Forex trader would use the latest Forex automated software or sometimes called Forex robots to trade for him and make sure the trader adhered to strict cash management principles and to his Forex strategies for trading. These programs are great for the new trader because he learns the golden rules of stop losses and cash management by watching the Forex robot trade. For the experience investor it gives him a method to program his favorite forex strategies while at the same time delegating these other functions to the Forex automated software.
The auto Forex trader today has great advantages over trader just ten years ago. The Forex automated software exists that will give him a greater chance of success in trading. All he has to do is swallow his pride and let the Forex robot do his trading, this is sometimes easier said then done.