There a big buzz word at the moment and many people will tell you, that a complicated mathematical algorithm based system, can help you win at Forex – but they don’t work and there is a better way to trade…
Fact: Forex markets do not move to certainties and are not a market with mathematical structure, so what good is a complex mathematical algorithm?
Not much use at all.
Forex robot vendors sell this theory, with their sure fire systems and promise of riches with no effort but these robots are junk and the market teaches them some respect, by giving them a wipe out of equity.
It’s a fact that simple systems work better, than those based on complex mathematics. Forex markets are an odds based market and in a brutal ever changing, world of currency markets, a simple system is more robust, with fewer elements to break than a complicated one and more likely to win.
If you want a graphic example of how complex systems don’t help traders win, look at the ratio of winners to losers. 50 years ago 95% of traders lost and the same ratio applies today, despite all the advances in technology.
People see technology enrich our lives, in areas such as transport, health and communications and immediately think it will enrich their trading experience – but it doesn’t.
Forex trading success is based upon the same fundamentals it was based on 50 or 100 years ago which are a simple, odds based system, combined with good money management and applied with discipline.
Leave complex mathematical algorithms, to the dreamers, nerds and losers.
Keep you’re trading simple and robust, apply your system with confidence and discipline and you can enjoy currency trading success.
By: Kelly Price
Posts Tagged ‘Robots’
Forex Trading – Why Complicated Mathematical Algorithm Based Systems Lose
October 24th, 2009Forex Education – 5 Essential Facts For Novice Traders Learn Them Or Lose!
October 9th, 2009If you want to win at Forex trading you need to get the right Forex education from the start or you will lose. Here we will give some essential facts you need to know to avoid the mistakes of the losing majority…
Let’s start with the fact that 95% of traders lose money and that’s a huge percentage however the good news is anyone can learn to trade successfully.
To win at Forex trading, you need to understand certain facts which relate to both your method and mindset and here they are:
1. You Don’t Get Rich Following Forex Robots
Most of these are sold for a couple of hundred dollars and the vendor tells you that you will make an income for life with no effort. The claims in most instances laughable but people believe the claims and lose their money.
Before you buy a system think about it; an income for life for a couple of hundred dollars, to good to be true? Of course it is! Avoid these systems or lose.
2. You Can Predict Markets with Science
This is just ridiculous because if such a theory did exist, there would be no market, as we would all know the price ahead of time. Predicting is hoping or guessing and your predictions will end up as accurate as your horoscope.
Trade the reality of price change only and leave prediction to the far out crowd and losers.
3. Complex Theories are Better than Simple Ones
The reverse is actually true; as markets move to probabilities not certainties, a simple system will be more robust and have fewer elements to break. Never fall for the complicated mathematical system will beat the market it can’t.
Always remember simple is best!
4. You Wont Face Losses
If you were to believe a lot of so called experts, you would think drawdowns are small and last a day or two – but the fact is even the best traders lose for weeks and drawdown is related to risk.
You need to be prepared for a drawdown of 30 – 50% at some point and expect it to last for weeks not days. Sure you can still win but you must ride these losing periods out and that requires the next trait – discipline.
5. Discipline the key to Forex Success
Discipline is the ability to keep your emotions out of your trading and keep your losses small. Most traders simply cannot do this, as they lack confidence and courage to stick to their plan but it’s the key element you need to succeed.
If you can’t trade your system with discipline you don’t have one.
The Road to Forex Success
Is open to anyone and anyone can learn a method which can make money; if this is combined with the correct mindset to apply the system, currency trading success will follow.
Always remember learning a trading system is easy, executing it is the harder part – but if you understand this, you can see that if you get the right Forex education and adopt the right mindset, you can win and make big gains long term trading Forex.
By: Kelly Price
