Forex Trading Systems - Using Computers for Profit

Today the computer you have on your desk is much more powerful than Mission Control Houston that helped man land on the moon. Powerful computers have changed our lives for the better and here we will look at their affect in forex trading and the application of forex trading systems by traders for profit.

So how useful are computers in forex trading?

The role of computers is very often misunderstood by forex traders.

Computers have enhanced our lives in many areas and help us solve complicated problems there is the belief forex trading systems can be created to trade forex markets automatically.

There are a number of forex trading systems for sale that promise to do just that - and most of them fail.

There are two reasons for this failure:

1. The System is to Complicated

Its tempting to make a system complicated and many traders do they figure the more elements it contains the better its chances of success however the complete reverse is true.

The more rules and parameters you cram into a trading system the more elements there are to break in the brutal ever changing markets - it's a fact simple systems work best as they are more robust and this has always been so.

2. Curve fitting

Many systems that fail in real time trading actually work in hindsight when their tested on data and the reason for this is curve fitting. Curve fitting is simply bending the rules of the trading system to fit the data. When the first rules don't work the trader simply bends them until they do. This is a bit like shooting at door with a shotgun and then after the event, drawing a chalk circle around each one to make it a bulls-eye!

Keep in mind that any segment of data is going to be different as the markets are not scientific in terms of their movement so the appliance of science is of limited use.

The above mistakes are often made in tandem and complexity or trying to be clever testing data and bending a system won't help you make money.

Here is another startling fact:

50 years ago 95% of traders lost and today the ratio remains the same - this is despite all the advances in computers forecasting and market data retrieval. It's pretty clear that the application of computers has made no real difference to the success of traders.

Many traders think the application of science and computers can help in all areas of life and in many they can but in forex markets this is not so.

Computers make your life easier but they cannot be relied upon to give you success.

Just as in the past a simple system will beat a complicated one and that is never going to change as forex is a game of odds not certainties.

Yes computers are helpful but the real key to trading is finding a simple forex trading system, understanding it and applying it with discipline.

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Reuters - Bears could have the upper hand again next week if Wall Street fails to get assurance that major banks can be rescued without being seized by the U.S. government.

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I Was Once New to Forex Trading Online Too!

So you're new to Forex Trading online?

Chances are you're here because you need to make money. This could be brought about by a desperate need to pay the bills, a desire to find a new line of work or perhaps for a fortunate few, "play" around in an investment medium.

Most newcomers to trading start out with one (or both) of the first two needs, I did too! The internet marketing community understands this which is why you'll find so many programmes, search links and products online. Several sources offer Forex Trading tips and the promise of making loads of money quickly. Start trading in 15 minutes some say! How can you pass up such an opportunity when you're desperate?

If you've spent a little time looking into trading online, you've no doubt run the "forex trading scam" search and found many warning signs out there! Can you ignore the advice that if it sounds too good to be true, it usually is? Well I'd like to answer some of these questions for you:

• Yes lots of money can be made through Forex Trading online. Trillions of dollars are traded across the globe, every day. Trades can be made in seconds and you can be part of it.
• Yes you can trade within a few minutes, as some platforms offer quick and easy start up processes. Other more established dealers require a more detailed approach and contractual documentation needs to be submitted.
• Yes, if it sounds too good to be true it usually is! This rule also applies to Forex trading. Whilst money can be made, and lots of it, it simply is not as easy as it sounds. There is substantial risk involved but this is has always been the case for high return investments.

There's a thrill to risk and danger in a fast paced environment. Forex trading online offers you all of this and can therefore become almost addictive. But you need a clear mind before entering this space. You need to take time to understand the market and the tools used by traders, which from my experience, makes this activity less suited to the desperate.

You see, I was desperate once too! I needed to make money quickly and did not therefore have time to study the business extensively. Quick gains came my way but not in the form of cash! My gains were in education and learning. Yes, I learnt that if you do not respect the industry and think that anyone can just walk in and make money, you're lucky if you come out ahead!

I was forced to step out and make my desperately needed cash in Internet Marketing first. Once I was settled and my desperation removed, I managed to get back to Forex Trading with great financial success.

There are many valuable tools and Forex Trading online information available. My advice to those of you, who are new, is to take the time to learn and remember that nothing comes easy! You've got to do the time!

Reuters - Merrill Lynch is shifting a majority of its contracts from troubled Indian software firm Satyam Computer Services Ltd to rival Tata Consultancy Services , the Economic Times reported on Monday.

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