| With so much hype surrounding the use of | | | | one overriding principle he teach is that your system |
| 'professional' Forex trading systems and automated | | | | isn't designed to reach your objectives, but instead |
| Forex robots its easy to get caught up with the | | | | the way you position your funds on that system is |
| overwhelmingly positive returns. As we all know | | | | what will enable you to meet your trading goals. Very |
| there is no such thing as a free lunch so today we'll | | | | few if any automated trading systems illustrate the |
| take a look at some of the negatives in trading with | | | | power behind effective position sizing and how this |
| an automated or subscription alert system. | | | | one critical element can make or break your bank |
| 1. If you lose money you never really learn the | | | | account. The more you study up on position sizing |
| lessons to bounce back | | | | and money management the longer you'll survive as |
| By far the greatest advantage of trading your own | | | | a winning trader. |
| system and using your own funds is the lessons you | | | | 3. Black Box systems and forex robots never tell you |
| learn along the way. Some of these lessons are | | | | how the system works |
| painful and some are gentle reminders to slow down. | | | | Automated CFD and Forex trading systems are |
| Unfortunately when you trade using an automated | | | | brilliant when they are working and the money is |
| system you find your bank account depleting but | | | | flowing into your account but when things are going |
| you're none the wiser as to why. Was the system | | | | well the mindset is usually 'if I'm going to lose my |
| just out of favour in the market? Did it generate | | | | money I might as well be making the mistakes |
| signals it wasn't supposed to due to an error? Have | | | | myself'. Unfortunately with a subscription trading |
| market conditions changed and so the system needs | | | | service or forex robot you never get to know the |
| to adapt? Are the previous positive results due to | | | | system and can never really understand the key |
| over optimizing and curve fitting the system to show | | | | reasons as to why its failing or winning. As a result if |
| impressive returns? | | | | you spend 6 months trading a losing system you will |
| These are the types of questions you may need to | | | | have to start from scratch at that point and develop |
| ask when trading your own system but when you | | | | your own methodologies. This will more than likely put |
| purchase or subscribe to a CFD or Forex trading | | | | you 6 months behind in your endeavors to create a |
| system you'll never really get to know the answers. | | | | steadily climbing equity curve. |
| 2. They never teach you effective risk management | | | | Having said all that, the time you save with an |
| strategies | | | | automated service can far outweigh the 3 greatest |
| Once of the greatest on the topic of positive sizing | | | | negatives mentioned above. |
| and money management is Dr Van Tharp and the | | | | |