The currency of Foreign Exchange (FOREX) market is the largest and most liquid financial in the world. The average daily trade in the global Forex market exceeds U.S. $ 1. 9000000000000 (Source: Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2004 and published in March 2005). These huge funds are negotiated by governments, banks and large institutions. In comparison, the largest stock exchange on Earth – NYSE Group (NYSE), has a daily trading volume of approximately $ 86. 8 billion (Source: NYSE Group, Inc. 2006). FOREX is 18. 4% average growth rate per year since 1989. It offers trading 24 hours a day, five days a week non-stop through the Internet. This type of trading hours for bulk liquid and long uninterrupted means that normally no problem to enter or exit a trade.But in this huge market, such as history, at least 90% of new Forex traders lose all their money in their first 3 months of trading. Why? Most losing traders who inquire about the Forex market are very intelligent, just need the right tools, the "Secret Weapons" to win. They are beaten by other traders, who simply are beaten by them, by the weakness of human beings.Speaking of the weaknesses of human beings, we list some of the following: *1. What is the first major weakness of human beings? If I say it should be "greed", does anyone disagree? Many times we have a% gain, but we believe it is fat. We want more, 2% or 3% will be better. While the benefit really goes to 3%, let's think about what 10%? Not enough forever. But the market is so volatile, especially in the currency market, usually encounter this situation of depression: The profit becomes negative from positive. And this type of depression that occurs again and again.*2. Fear. All people are afraid. In exchange transactions, foreign exchange is easily jumping or falling hundreds of pips. Few people can be sure how the market will go. In the currency market, the whole town for trade leverage of 50:1 to 500:1, the leverage will expand the profit or loss 50 times to 500 times. Leverage is the wonderful feature of the currency, and bring fear into the hearts of the people as well. If the market goes against the people, large reduction comes, fear goes too. Is there no fear of losing money? Under the pressure of fear, ordinary people and, usually, wrong decisions, stop loss too soon, then soon regret.*3. The lack of confidence. Looks better than fear, eh? But it's not a good thing. Human operators often are so happy once they see little benefit in their accounts. They worry that if the profit becomes loss? People always have a small profit and run, then I regret that the market will see more and more extended along the right path. If they were sure that there have been ten times or even hundreds of times profit.*4. Hesitation. Not only novices but also old hands easily hesitate to act in the Forex market. You've probably heard the saying "Past performance does not predict future performance." Even a very experienced operator who has made many successful operations in its history, while he or she is facing a new situation, needs to think twice before making a simple decision: Buying or selling? For newcomers or fans, they need more time to think, and this type of question always leads to confusion and the best chance and fleeting.*5. Fatigue. How many people can keep working for 24 hours? Without sleep, without rest? How about 48 hours, 72 hours, etc? Even an iron man can not use your eyes on the computer monitor, your thinking brain rapidly changing questions and hands the calculation of complex formulas, day and night, 24 hours a day, 6 days a week, nonstop . Above all, no mistakes allowed.No one can.None.No doubt.Do not mention the Super Man. He has also tired.*6. Negligence. Do you ever have problems just by a little negligence? And took a wrong bus, missed a start on the road, hit a wrong number for head misunderstood, ignored a no-parking sign is omitted a whole page of questions on a test, go left at home while a vital interview, misspelled a key word in a quotation form for a VIP, etc Hey, man, when was the last time you forgot the birthday of his mother, or worse, the wife, or worse, the girl friend? Mom always forgives her negligence. Wife. . . Well, it depends. Girl friend? Hey, good luck.But unfortunately, in the currency market, no one will forgive his neglect, even yourself. Any negligence must be punished. You may receive a margin call, only pennies left in the account, you can just because a small oversight.*7. The lack of discipline. Humans always think they are smarter than machines. Sure we are. Not only are more intelligent, we are free too. But everything has its nature, character and standards. Rule means the discipline. If we are intelligent and free Forex trading , make decisions based on our feelings or just the knowledge, discipline and to ignore, no disaster will not end that awaits us ahead. Forex is like fighting in the war, soldiers can not survive without discipline in war, are not traders in the Forex market. While we have to stop the loss we cut and run, despite the bloody and painful it is when we take advantage, you can not hate the benefit is too small. Discipline is discipline, maybe some Smarties can win a while, but only people can keep obeying discipline always can always win.*8. Inconsistency. Long or short term? Buy or sell? Prosperity or depression? Bought or sold on the most? High or low? Support level or resistance level? Fundamental analysis or technical analysis? Including automatic or manual exchange transactions? Etc. There are too many inconsistent news, facts, information and methods, the strategies in the Forex market, human operators can easily lead to inconsistent decisions and choices. And these inconsistencies will make only one direction: Failure to overcome these terrible weaknesses of human beings, people have developed many methods. One of them is called "automated trading." Automated (or Automatic) Forex trading means for the Forex (foreign exchange) with some trading systems, programs, software or robots (in Metatrader MT4 platform is called as expert advisers – EA), without a human being with physical trade . An automated trading system is a set of specific rules and parameters governing the entry and exit, have the ability to generate both signals and execute trades automatically. The AE is an automated trading system "robot." The robots can beat humans at chess games, EA robots can beat humans in the currency market as well.Developers consider synthesize many components that are developing an automated trading system or EA robot, including: The nature of the market, mathematical modeling, Time Lapse, the input and output signals, Stop Loss Trigger, and profit target, etc. After the system is created, do the test again and send evidence of rigor in both demo and live accounts. A fully automatic trading system created as well is capable of analyzing the market independently, complete work on its own and constantly generate signals automatically executed on a trading platform. On the other hand, developers can design the system as a "semi-automatic whereby users can receive an alert when the output power, Stop Loss and Take profit trigger occurs. The audible alerts can be via computer, sent to the e-mail or even send a message to your cell. Once the user confirms, the robot will obey the order to finish the trade.There are many advantages in Forex Automated Trading, such as: *1. Automated negotiation is executed by the computer. Today, computing and information technology have been developed to a very high level. Computer can perform calculations thousands of times faster than humans, estimates of training without logical error and store memory at incredible speeds with pinpoint accuracy.*2. Remove the emotion of trading. Unlike humans, an automated trading system will never be misguided by greed, fear, indecision and inconsistency. It's just trade mechanically (but fully programmable), affected by the psychology of a trader. Is made on the basis of the criteria and disciplines. Obviously, this reduces the risk of panic operations.*3. Automated trading can take trades day and night without stopping, without fatigue and neglect. EA robots free their owners need to stick to the front of the computer at all times. Once an effective system is developed and optimized, you can stop running automatically and independently complete. The commercial success of EA automated robot will allow its holder to focus on optimizing strategies and money management rules instead of having to constantly monitor the market.*4. Computer can run multiple programs simultaneously, so we can use EA automated trading robots make trades multiple phase. That means you can include multiple conditional entries and exits, profit targets, protective stops, trailing stops, and more in our strategies, and make all automated at the same time. This powerful feature can help us maximize our return on investment and reduce risk.*5. During the day traders or other short-term followers of commerce, automated trading robots are very useful tools for dealing with high frequency of operations from tick data. Day trading allows operators to set out in the market very soon, so sometimes it is safer than long-term trade, but it is difficult for a human to handle. However, for automated trading robots EA is just a piece of cake.*6. No matter the market long or short term, currency market is always volatile and fast waves, only automated trading can afford faster identification of signals and react to them. No doubt, computers in general, will beat humans at the speed of identification of a trading signal and the input and the implementation of relevant orders. No more missing a trading opportunity.automated trading is not perfect yet, and EA robots can not think instead of humans. If the programmer's skills are at a low level, or the idea of the strategy is unsustainable or not logical, a product will not succeed. However, practical experience shows that an automated trading system ensures high quality always some kind of financial success for its owner working on the Forex market. The latter fact is in the Automated Trading Championship 2007, global competition, all participants use the EA robots, the champion won 1204. 75% of profit earned second place 450. 42%, and third place won 299. 45%, only 12 weeks.Is not it amazing?
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