Other conditions necessary for successful trading with Forex
advisors
1. The primary prerequisite is having constant, uninterrupted
access to the Internet. Those who have the benefit of experience know what it's
like to lose your connection at the most inopportune of times. It is a waste of
both time and money. Therefore, be sure to secure your trading terminal against
possible interruptions. Many professional traders place their experts on VPS
servers with the MT4 trading terminal. Or they use hosting. Let me be clearer.
Constant, round-the-clock use of your computer may be problematic and
inconvenient. Imagine for a moment that your computer works 24 hours a day - a
situation that is probably less than ideal. You can, however, rent virtual
space. If you are trading on a small scale, this is out of the question. If you
are going to trade with a lot of money, though, renting virtual space will
protect you from connection disruptions with your broker.
2. A bit more about money management. If you are using a single
Forex advisor to trade in several currency pairs, your trade volume has to be
reasonable. The reason for that is simple: there is no such thing as a
non-losing Forex advisor. As with Forex trading strategies, foolproof Forex
advisors do not exist. If you risk your entire position at once, a momentary
loss of connection can wipe out your entire position instantly.
Unfortunately, it often happens that people don't observe basic
rules of money management, lose their money, and blame it on the Forex advisor.
Even a cursory review of the situation usually reveals that the losses have
more to do with the trader rather than the advisor. From an incorrect
calculation of size and volume to a lack of basic technical analysis planning,
the reasons can vary but have nothing to do with the advisor used.
Admittedly, I have had a chance to observe a lot of different
traders, enough to say that there are no pat formulae. Some trade using maximum
lots and somehow achieve substantial capital appreciation instead of getting
wiped out, sometimes in as little as one week, while starting out with small
amounts of money. These traders take their profits off the table and resume
trading with small amounts again, to "ram up" the size of the
original deposit. In that situation, even the loss of the entire deposit will
not be fatal, because the trader has started off with a modest deposit. The
risks are contained. It's not the worst of strategies, and if it works, its
existence is justified. In any case, it's just an example of how your capital
can be managed. If it works and makes profits, it is legitimate. In fact, never
mind profits: it is legitimate as long as it doesn't lead to losses.
3. Always keep tabs on how your advisor is doing, even if it has
been working correctly. Be especially vigilant if you have been using the
advisor for a long period of time. If you see that your advisor is beginning to
make unprofitable trades, it will be prudent to switch to trading with minimum
lots while you try to determine the cause of the problem.
As for using advisors for your trading - a lot of people erroneously
believe that advisors can solve all of their problems. That is not the case. A
Forex advisor has its limitations. Don't delude yourself into thinking that you
can leave your advisor to trade on its own and come back sometime later to
collect a million dollars. An advisor is only an assistant. If you have chosen
a certain strategy, this assistant will help you determine whether you are
going in the right direction. The really big upside of using a Forex advisor is
that it frees you from a number of psychological problems that often accompany
Forex trading. Considering that mental clarity is vital to successful trading,
the advantage is obvious.
You can find several professional Forex expert advisors by
category on our website: http://iticsoftware.com/expert-advisors
Article Source: http://EzineArticles.com/expert/Boris_Fesenko/2089943
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