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Sunday, September 14, 2008

Which Forex Trading System Will Be Best Suited For My Trading Personality and Risk Tolerance Level?

By William Alheim Jr

For some time now the year end statistics have shown that automated trading systems trading stock on the New York Stock Exchange has increased in volume over the previous year and the trend now is expanding to the Foreign Exchange Markets (Forex.) In order to optimize your results trading on the currency markets it is essential in today's ever increasing competitive field that you utilize all the tools at your disposal. A complete knowledge of all the various aspects of Forex trading is no longer sufficient to maintain your status as a successful trader. Especially, when your competition has already taken the next step, which is an automated Forex trading systems.

There are numerous instances where a retail trader has hastily entered into the currency markets after taking a Forex trading course and retreated form the market just as quickly as they entered. They then contemplate what caused them to fail and one of the factors was they were always behind the trading curve. The importance of an automated trading system when entering the currency markets can not be understated. There are numerous types of trading systems on the market today. One software system might focus on trends, the next on signals and another could be based on specific strategies determined by the developers of the currency trading platform and programmed into the software.

Many currency trading systems incorporate state-of-the-art Forex software that makes winning trades with pinpoint preciseness on Auto Pilot and are able to make victorious trades over ninety per cent of the time. The problem with some of those systems is that the winning trades profits can be often on the small side and the one losing trade in ten they make can wipe out the profits of the previous nine winning trades. At the other end of the extreme are systems that make winning trades less than fifty per cent of the time, but when they hit a profitable trade it is often a large one and wipes out the loses in your account from the previous losing trades.

Hopefully, if your this far along in the Forex markets that you are contemplating purchasing a Forex trading system you are already an experienced trader ready to make the next step in the evolution process or if your just beginning to trade the currency markets you have all ready taken one of the exceptional Forex courses that are available today. Regardless of the situation, once you decide on the Forex trading software you will purchase that you realize you still have a long learning curve in front of you regarding the software. The purchase of the software is just the first step. It is just essential that before utilizing it with a real money account you are able to make winning trades consistently over a minimum of a month's period time using a demo account. Only at that time are you ready to use your new Forex trading platform at the next level with a real money account.

When you start researching the market on Forex Trading Systems you are going to find that there are literally hundreds of them on the market today. So which is the best? Which is going to make me the most money over the shortest period of time? Which is going to make me money consistently over an extended period? The answer is that once you have eliminated ninety five per cent of the platforms that are not first-class, all the rest will do what you require depending on your trading profile and your risk tolerance level. In other words each of the distinguished trading systems approaches the situation a little bit differently. Your purchase of the product needs to be based on your trading personality and which product best suits that personality. But, NONE of the systems will perform profitable for you if you do not spend time learning to operate the software and programming your specific trading personality into the system.


William R. Alheim, Jr., CPA, MA - for reviews of the TOP 10 Forex Trading Systems on the market today go to http://www.tradingforexreviews.com/

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