Monday, November 9, 2009

Automated Trading

      Is there such thing as money coming into our account without the need of effort? Recently there are so much debate over automated trading in Forex and stocks. The technology of trading has developed from shouting over the counters, to clicking the mouse at home. To enhance the situation, robots are developed to "trade" for us.


      Initially we'll make money from the market. Oh man, the blood rush, the adrenaline. I'm sure any F1 driver would find this more exciting. then come the first losing trade. And another, and another. And.....we have no more losing trade because there ain't any left in the account. We're in hell. The night is long and sleeping seem more difficult than constipation. Why did recession comes to us way before the experts predicted it? 







     And comes a friend telling us about robots, we roam around the web for robot with the most probable winnings. Then just like god sent, a few robots are available for us at a small price to pay ($97-$149). All of them have great review from many folks reputed to be great traders who's name we have not even heard before, the heck with it, who cares who they are? They're making money. They're rich. The statement displayed shows win after win with almost insignificant losses. That's when we believe we have found, the Holy Grail. Small losses, good review plus cheap price...we asked ourself "what the fuck am I waiting for?". Hence, we pulled out our credit card and enter the digit into the computer. Viola!!! The download link is sent almost immediately. Professional is indeed completely different!. When we order a Honda, there's a waiting list, but over here, there isn't. We put all the hope along with the limited money we have in the account and wait for riches to find us. We imagine, seeing our account fatten as we wake from our sleep. As we work, it continues to grow just like a colony of termites. The robot knows no rest. Easy life was just around the corner.


      Imagine yourself going to a book store, grab the thickest book in the medical section about neurosurgery. Read the whole book and can you call yourself a surgeon? Would you leave your brain to someone like that? Similarly would you leave your money in the hands of people whom you have never met? Most robot developers will not disclose their trading strategies to you. Their so-called profitable robot will ended up trading less frequently as said, less probable as stated and we started to mail them asking silly questions.


     Ya...I admit, I'm one of the millions out there who wish desperately to change my life. But I've learnt the hard way that, no Holy Grail is out for sale. If there is, it won't be cheap. I feel that every novice trader should read this, trading requires constant learning, improvising and most important of all discipline. To be profitable in trading, we must respect the market. There is no gain without sufficient effort right? To be a real trader, we need to analyze the market constantly, aware of any updates and strike at the precise moment with the highest possible accuracy. There's no room for emotion! So, being a trader is just like being a doctor. Every market condition is different, that's what makes trading fun. It's the joy every time we make the right decision and profit. It's about the disappointment every time we make the right decision and the market tricked us. And it's about how hard we want to win. Above all, it's the journey where we try to defy the overall losing population. 


     So, is there such thing as easy money? Unfortunately for me, that a No-No. Ultimately, at an overall picture, trading isn't hard at all. All we need to decide is whether to buy or sell. When to get out will be decided itself (only a true trader will understand this sentence). 


Happy trading! Luck is not required. 

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