I have always wondered if people are really aware at how difficult to trade the forex market actually is. Most of the time people seem to know that the foreign exchange is a place where most people lose their money but they seem to be a little bit away from the concept. Most people consider this does not apply to them. Now, the truth is that most people lose money in the market, specially the foreign exchange market and certainly there is a lot you have to do if you want to become one of the few that can actually profit from this beast in a regular basis. There are a few things that make this more complicated, something which I wanted to point out so that people really become aware of what they are going against.
1. Your competition is not retarded : This is a very important aspect that most traders seem to neglect. They often belive that most people that lose money out there are just ignorant people who don't know what they are doing in the forex market and lose every penny on their accounts due to them not knowing how to trade. Wrong. Of course, this people lose their money too, but most people trading the market are not so ignorant and often, know much more than the new retail trader. Some people out there who lose are economist and finance specialists, so knowlgedge perse is not a way to win in the forex market, experience is very important. I would say, experience and knowledge go hand in hand and both have extreme importance. So don't think you know better if you have not been trading for at least 10 years. It is very difficult to have an edge this way.
2. Your competition wants to win : Most people also neglect that their competition wants that money as hard as they do. If they want to belong to the top traders that take money frequently from the market they have to wonder what they can do to win in their own game. These traders have been taken money from the market for years, even decades, and they are not alone. They are usually teams of very trained proffessionals and experienced retail traders that just want that money as much or much more than you. So what is your edge against them ? Cause I am certain they have plenty of edge against you.
3. Trading a commercial Expert Advisor is NOT an edge : Why would you have an edge if you trade FAP turbo, a system that has been bought and is traded by about 30,000 people ? Thats right, that simply does not give you an edge because it is a tool many many traders are using to try to profit against the market and market eficiency most likely prevents this from happening. Since the trading system is mechanical and automated, it is easily overrun by top forex traders around the world. Sincerely, honestly, do you think that using something you do not understand and many other thousands use gives you an edge ? It simply doesn't, thats probably the truth. They also know how to google, and they too know the program exists and why not to trade it. As I said earlier, your competition is not retarded, every obvious thing you can do to profit, is already taken into account and it won't make you profitable.
4. Automated Trading Systems Need to be Understood to Consitute an Edge : Ok, trading an expert advisor everyone can get their hands into and trade and that is highly commercially hyped won't give you any edge. But that does not mean that automated systems cannot constitute an advantage. If you trade an automated system that exploits a genuine characteristic of the market and you truly understand the way this expert advisor works, then the expert can give you an edge against every trader out there losing money with a commercial EA. The system most be robust, be able to change against different market conditions and you must understand it's code and the way it works, from A to Z.
5. You need to know Manual and Automated Trading for Automated Trading to be an Edge (probably programming too) : Yes, sorry to disappoint everyone out there, but if it was as easy as running a program made by Joe X and watching the money flow into your pockets then everybody would do it, right ? As I have said many times, being profitable with automated trading system is even HARDER than being profitable with manual trading systems because long term profitability in automated trading not only requires the regular knowledge of the market a successful forex trader has but it requires knowledge about which systems can be automated, what can really work, how to program the expert, how to debug, how to address the profitability of a system to know if it is long term profitable, etc. If you are just hopping to run an EA and become a millionaire, please, do NOT waste your time, you will only lose money with that attitude in the long run.
I hope this few parameters shine a little light into how hard the forex market really is and how you too can build your edge around a solid automated trading system. If you would like to learn more about ea profitability and automated trading, as well as expert advisors I have tested and reviewed please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !
1. Your competition is not retarded : This is a very important aspect that most traders seem to neglect. They often belive that most people that lose money out there are just ignorant people who don't know what they are doing in the forex market and lose every penny on their accounts due to them not knowing how to trade. Wrong. Of course, this people lose their money too, but most people trading the market are not so ignorant and often, know much more than the new retail trader. Some people out there who lose are economist and finance specialists, so knowlgedge perse is not a way to win in the forex market, experience is very important. I would say, experience and knowledge go hand in hand and both have extreme importance. So don't think you know better if you have not been trading for at least 10 years. It is very difficult to have an edge this way.
2. Your competition wants to win : Most people also neglect that their competition wants that money as hard as they do. If they want to belong to the top traders that take money frequently from the market they have to wonder what they can do to win in their own game. These traders have been taken money from the market for years, even decades, and they are not alone. They are usually teams of very trained proffessionals and experienced retail traders that just want that money as much or much more than you. So what is your edge against them ? Cause I am certain they have plenty of edge against you.
3. Trading a commercial Expert Advisor is NOT an edge : Why would you have an edge if you trade FAP turbo, a system that has been bought and is traded by about 30,000 people ? Thats right, that simply does not give you an edge because it is a tool many many traders are using to try to profit against the market and market eficiency most likely prevents this from happening. Since the trading system is mechanical and automated, it is easily overrun by top forex traders around the world. Sincerely, honestly, do you think that using something you do not understand and many other thousands use gives you an edge ? It simply doesn't, thats probably the truth. They also know how to google, and they too know the program exists and why not to trade it. As I said earlier, your competition is not retarded, every obvious thing you can do to profit, is already taken into account and it won't make you profitable.
4. Automated Trading Systems Need to be Understood to Consitute an Edge : Ok, trading an expert advisor everyone can get their hands into and trade and that is highly commercially hyped won't give you any edge. But that does not mean that automated systems cannot constitute an advantage. If you trade an automated system that exploits a genuine characteristic of the market and you truly understand the way this expert advisor works, then the expert can give you an edge against every trader out there losing money with a commercial EA. The system most be robust, be able to change against different market conditions and you must understand it's code and the way it works, from A to Z.
5. You need to know Manual and Automated Trading for Automated Trading to be an Edge (probably programming too) : Yes, sorry to disappoint everyone out there, but if it was as easy as running a program made by Joe X and watching the money flow into your pockets then everybody would do it, right ? As I have said many times, being profitable with automated trading system is even HARDER than being profitable with manual trading systems because long term profitability in automated trading not only requires the regular knowledge of the market a successful forex trader has but it requires knowledge about which systems can be automated, what can really work, how to program the expert, how to debug, how to address the profitability of a system to know if it is long term profitable, etc. If you are just hopping to run an EA and become a millionaire, please, do NOT waste your time, you will only lose money with that attitude in the long run.
I hope this few parameters shine a little light into how hard the forex market really is and how you too can build your edge around a solid automated trading system. If you would like to learn more about ea profitability and automated trading, as well as expert advisors I have tested and reviewed please consider buying my ebook on automated trading or subscribing to my weekly newsletter to receive updates and check the live and demo accounts I am running with several expert advisors. I hope you enjoyed the article !
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