Mechanical Forex Trading

Traders can be categorized as mechanical and discretional. A mechanical trader sets up some strict rules for his/her trading and sticks with them all the time. A discretional trader considers his/her power of judgment at the time of trading. In a mechanical approach you can estimate the likelihood of your success and based on that likelihood you can make correct decisions. A discretional trader has no clear way to evaluate his/her likelihood of success. A discretional trader could be more successful than a mechanical trader in short term but in the long run it is the mechanical trader who wins the most. There might be some exceptions but in general mechanical trading is the right way to go.

The ultimate mechanical trader is the computer. Even a highly-disciplined manual mechanical trader is not 100% free from discretion. If you leave your trades to your computer it never breeches the rules you have set for it.

A computer is a machine and it cannot setup trading rules. It is you "the trader" who needs to define these rules for the computer to make your computerized trading experience a successful one.

Forex the Tug-of-war between Currencies

Entering the forex market is very easy. You can open an account with less than $300 and enjoy the high leverage of 100:1 or even more. For many people this means making big money in a short period of time. The temptation is high but unfortunately the reality is different. The majority of inexperienced traders lose money in this market. Many of them even blow out their accounts completely in a very short period of time. It is not easy to constantly make money in forex.
Forex is the largest and the most liquid market in the world. With an average daily trade volume of about $1.9 trillion no other market can beat it. The Forex market which is an Over-The-Counter (OTC) market is open 24 hours a day for 5 days a week.
To be a successful trader you need to be a disciplined , knowledgeable person. You need to learn several skills including fundamental and technical analysis methods, and risk and money management techniques. The psychology of trade also plays a key role in your success as a trader.