The human brain vs computer in Forex trading

The human brain vs computer in Forex trading

Software FX is no longer a rarity these days. When you use the Google search engine to search for “Forex” or “Forex” robots will show you over 1 million as a result of this research. 

The proliferation of such programs for market analysis and trading to ask an important question: which is more effective in analysing and trading Forex, human mind or computer software? This article will discuss the advantages and disadvantages of both the human mind and computer software for trading, and in the end will show you my personal point of view and why I believe that the human mind without a doubt is the best tool for handling and analyzing the Forex market. 

Price movement reflected the views of all participants in the alsokharkh price reflecting the views of all participants in the market Free markets established by human beings, and specifically created by the beliefs and views formulated by human beings and acts accordingly on whether specific financial sheet price too high or too low. Essentially, markets are a reflection of human emotion, and price movement is the image created by this passion. Just like the moods and feelings, the markets can change very quickly, and shifting from calm to volatility in the blink of an eye. 

With that in mind, it is not very intuitive belief that trading software that can do a better job of analyzing and trading markets of the human mind.

 This, we must not forget that most distinguishes the computer software for trading is about passion and emotion perfectly.

 This is what most distinguishes it, although computer software for trading that have so far made any advantages outweigh the human mind, especially in the field of psychology.

Computers aren’t emotional One of the anomalies created by computer programs to trade is that despite its ability to be free from emotional problems that afflict many professional investors, it lacks the capacity to develop trading instinct as human.

 It’s extremely cool computers, and computer software for trading will only according to its programming. This means that if you lose a deal trading, won’t stop her anger or frustration of transaction brokerage.This means that the inability of computers to interpret and analyse human emotions both advantage and disadvantage at the same time trading software.

 So, what can we learn from computers on managing our emotions when we are trading within the market? We can learn the following: should not have acted with the market based on what happened in previous trading. But should be dealt with on the basis of what he is doing now. We should not use robots for trading in the market.

 But it is certainly possible to learn some very important things. So basically, we need to use and develop our ability to interpret emotion and instinct development to our benefit, and do not allow for such capacity to operate against us or surrender to the emotion of the win or loss.

 Emotional trading errors are the main reason behind the failure of most investors make money consistently on the market, and eliminating emotional biggest trading mistakes what differentiates computers on human mind when trading. While the human mind than computers when the analysis and selection of human input, especially when they are training in the strategies of price movement.

 In order to outperform computers on the human mind, we need a so­called artificial intelligence, we haven’t gotten to such advanced stage. Develop common sense estimated trading Forex is very important Yes, the markets to form the signals are usually somewhat repetitive over time, but many investors are quick to take trading decisions resulting in the loss of trading deals. 

A large part of trading successfully depends on improved trading, and most investors need to develop this common sense in addition to develop Forex instinct to achieve successful trading. 

We can develop the instinct of trading based on price movement, that movement trading price estimate, that means you don’t take every signal of price movement. Instead, learn how to trade price action signals according to market conditions. 

If it is very important to learn to develop trading skill and how to trade in the market. 

This software is not available for trading. 

In my opinion, a successful Forex trading depends on the development of effective mechanisms of perspective movement of prices and markets, along with the hard discipline of computer software for trading. 

Therefore, we try to take the best aspects of computer software for trading and is not letting the past trading results that affect our future trading decisions, and when combined with unparalleled mental ability of the human mind, this will be reflected in the price action Forex chart. 

The computer cannot teach you trading Finally, there is something else the computer can’t do, which is to teach you trading effectively. the world’s most successful investors don’t blind trading based on buy and sell signals from some robots. Understand acting on years of experience in the market and common sense refined estimate of trading based on the analysis of price movement.

 I want to let you know the strategies of price movement, which worked for years, and I also want to let you know how and when to use such trading strategies, but will comply with discipline and not excessive trading or the use of high leverage. If you can do that, you’ll have a very good chance at making money and profits within the Forex market 

THE END

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The human brain vs computer in Forex trading

The second lesson:Tortoise vs Here ­an example of trading

The second lesson:Tortoise vs Here ­an example of trading

Everyone knows the story of the tortoise and the Hare, but what you don’t know is that this story can be used as very effective analogy to describe the differences between winners and losers in the Forex market. Like rabbit, you probably have seen a lot of excitement and success being framed for you too when you start trading with a real account. However, it’s probably because you haven’t gone neat and quickly during your trading approach, you may see the near success of your leaking over time, just as happened with rabbit. 

While the turtle is much slower than the rabbit, but keep its persistence and her passivity, so I won in the end as you know. 

Thus, your goal as an investor should be more like the tortoise, not the Hare­style, this is the way winning the trading game. Are you a “turtle“ or “rabbit“ in the market? In the tale of the tortoise and the Hare, the rabbit starts racing with the irony of slow turtle, convinced that he is the winner of this race. While acting as emotional turtle, but with a lot of confidence, and start the race slowly but steadily and consistently from the beginning. 

While pursuing the rabbit gets distracted attention from other animals along the way, it stands sometimes to show courage to the rest of the animals, and sometimes takes a NAP on the way, unfortunately, the loss of coherence and consistency at the rabbit, in addition to emotional disposition is the fundamental reason behind the slower tortoise losing to him, even though he began the race with a physical feature guaranteed win easily.

 And with that the turtle was winning position is weak because of the physical nature of the slow, but because its more stable and consistent, managed to win at the end of the race. 

This story of the rabbit and the turtle is really a good description of the basic differences between investors who lose money consistently the Forex market and others who earn money constantly. 

The investors who are trading in a random manner and are not fixed and are affected by the art of halqa, they usually suffer a lot during their trading, those investors who are trading like a rabbit. 

On the other hand, investors who follow the slower and more consistent approach, such as the turtle, enjoy the many features in the long term. 

Anyone who follows my trading tips, know well I invite to follow trading with low frequency. 

In fact, the high frequency trading usually reap less money over the long term compared to the low­frequency circulation and most stable, such as the “tortoise”. 

Thus, the reliance on low frequency trading is the best way of making a lot of money in the market over the long term. 

Trading is not a short race Marathon fast Note well I finished the preceding paragraph talking about the “long term”, that is the main point in this lesson. 

It is not hard to be lucky and win over a few of your circulation transactions, however, are not important to their win during the first month of trading, but the important thing is to be able to stay patient and disciplined in the face of the constant temptation to overuse the circulation and use of leverage.

 Turtle kept pace in the race before the Bunny, this enabled them to eventually overcome the rabbit, which is no longer himself to race properly and did not give enough thought to the race. 

They find that Bunny dawn fully running fast at the beginning, that racked fatigue in mid race, and this finally led to losing to slow turtle. Many investors tend to focus too much on the short term, as they deal with their like Sprint and race to the finish line. When investigating the win on a few deals, they tend to overuse and abandon the steadiness and consistency during the coming trading deals. So instead of thinking calmly and not to preserve what has been achieved successes.

 Just as did the tortoise, you must maintain your energy to win the race. In other words, you need to keep your trading capital for conditions of high probability of price movement, rather than waste it on random bets in the market.

 The tortoise wins big award Despite the difficulties that jammed in front of the turtle in the beginning of the race, but they finally managed to win the Cup back home. 

This is exactly what happens in front of two investors start trading users different size trading accounts, one big and one small. After three years of trading micro account holder may find he has a lot of money in your trading account by more than one other investor who began trading with a large account.

 This command is repeated continuously in the market, it is not important how much money you have, but what matters is your ability to trade and manage your passivity and your money into the market. Consistency always leads towin in the end. As previously discussed, it is necessary to preserve your capital to use in conditions of high probability of price movement, instead of using whatever you have quickly in the first trades. 

The Bunny made a lot of energy at the beginning, while the turtle is kept steady. Similarly, you need to keep your money like a turtle so you can stay in the game to achieve sufficient profit at the end of the year. This often find many investors are putting their own trading accounts for a lot of damage very early, sit on the chances of achieving high profits at the end of the year. 

The end of the second lesson

the second lesson:Tortoise vs Here ­an example of trading