Forex Mechanical System Trading - Is It For You?
Before I proceed to share with you my views and pointers about forex mechanical system trading, I would assume you know the differences between discretionary and mechanical trading. If not, I would suggest taking some time understanding the key differences between them before reading this again.
Ok... if you're still here, let's move on
These days I notice more traders flocking over to the mechanical side of trading from the discretionary camp which is pretty interesting to me. If you've been doing well with discretionary trading, I congratulate you because it's not many people that do well with it.
Here's the biggest problem traders in general face... their mindset, psychology or emotions.
If you cannot control your emotions, you're pretty much out of the game. Period!
That's where mechanical trading comes in and where your ego is left at the door. With mechanical trading, you are asked to be like a robot and just followed simple straightforward trading rules that for the most part never change for the trading system too often.
It looks like this...
When A and B happens, you do C. Or when B and D happens, you do E. It's that simple.
And we are know that trading forex has 3 sides to it, strategy, money management and psychology. With mechanical trading, you have pretty much dealt with the issue of psychology which leaves you with just the strategy and money management sides to work on.
As I bring this to a close, start with mechanical forex trading if you think you've got a problem controlling your emotions (especially in trading).