subject: The Combination Of Skill And Forex Trading System Can Make You A Successful Trader [print this page] Profit is the most pertinent keyword in the dictionary of a forex market trader. Before starting on the trade you must know what are the facts and myths related to such a trade. In order to help you out, various websites nowadays help you with the forex trading system which deliberately answers all your questions that keeps popping up every time you look at the screen. In the initial stage, you need to decide the purpose as to what type of forex trading system will be suitable for you and why. The other very frequently asked question by the beginner is whether the chosen trading system has a potential for loss. The best part is that your questions will be answered by professional traders who have ben in the business for over a decade.
You should know the different types of trading systems, which will help you, choose the type best for your business and learn accordingly. There are basically four types of forex trading system. These include mechanical rule-based forex system, forex trading robots, discretionary strategies and price action strategies. Mechanical rule based forex system is basically rule based. It is very complicated and does not work in all market conditions. As the system is based on rules designed by the designers, it is hard to interpret and can be extremely confusing. Moreover the dynamic nature of the market does not allow defining the market through definite rules.
Forex trading robots are popular software which help the trader to take decisions and work accordingly in specific market situations. In a forex trading system the problem that arises is that the forex trading robot is an integrated software which is programmed to work in a specific situation and not in all of them, and it makes the art of trading very mechanical. The forex trading market ebbs and flows and hence a particular set of rules or a program that worked for one situation might not work for another situation. This is the place where the human mind and forex robots split paths, giving rise to interesting situations.
Discretionary strategies are the classic way of trading using candlestick analysis, basic chart pattern etc. It is basically a tool, and one is required to practice discretion for it to get implemented effectively in real situations.
Lastly, the price action system, which is probably the best of all, helps one to act at any given circumstance. It is adjustable; hence it is the only system which works optimally in any situation. Nonetheless, human judgment is what makes one distinct from the other traders. Go through the various kinds of forex trading system and decide which one is best for you. No matter how much a person learns the strategies and systems, a true trader learns the art of trading through live experience and at the end of the day makes a specific set of rules which works the best for him or her. Another very important fact is that if you are trying to find a single solution to all your market situations then you need to know, there is NO such answer or strategy or system which will work effectively in all given circumstances.
