Get a Life by Automating Your Trading - By: James Wilton

“Automated trading helps the strategy to avoid greed, fear, and lack of discipline.” Winsor Hoang (Professional Money Manager & Forex Trader)

Indeed automation is a very successful tool to reduce many of the pitfalls faced by day traders. Our human weaknesses such as trading based on emotions, fatigue or psychological issues can be overcome by automating your order execution. Automating a trading system allows traders to focus on areas where they can add the most value and leave the mundane process of monitoring the markets and executing trades to their auto trading program. Spending less time sitting in front of the markets and more time improving your system is a more efficient use of your resources.

Rather, spend time on the research and development aspect of your trading. Finding viable trading ideas followed by planning and building a system around them requires focus and attention. Trading systems need to be run through simulators and back-tested to ensure suitability and profitability. Spend time monitoring the results of your trading program and making any necessary changes. Market conditions change from time to time and systems may need to be adjusted to accommodate this. Build an automated trading program so that you can focus improving and maximising your trading success.

You should be trading to make money, not for any other reason. If you are trading for an adrenaline rush, as an excuse not to get a “real” job or to prove something to somebody, you are not going to make it. You need to treat trading as a business and approach it and implement it from an unemotional, business-like perspective.

Constant high levels of anxiety are tiring. Automate your trading to eradicate anxiety and reduce fatigue. Being less stressed and less tired will make you a better trader and you'll enjoy life more and have a more positive outlook. You do not need to have an exceptionally high IQ to be a brilliant trader, but emotional stability is extremely important if you want to reach the pinnacle of trading success.

I have found that automating my Forex trading system has been beneficial to my trading success. I make better decisions due to less stress and make far fewer errors due to emotional decisions or fatigue. The tiredness due to constant focus and anxiety has been replaced by a calm alertness that has not only improved my trading consistency but also improved my quality of life. I remember when I first made the transition from stock market trading to 24 hour Forex trading. I spent hours in front of the charts often sleeping only two to three hours a night. This ended when in an exhausted state I realised that although I was spending more time in the market, my win loss/ratio had deteriorated dramatically due to the errors and poor decision making that had crept in.

After analysing this period in my trading history I discovered that although I had been making more errors, the worst thing about being so tired and anxious was the marked reduction in my ability to remain disciplined in my trading. The more tired a trader is the more difficult it is to follow his trading plan.

Like any professional, it is vitally important that traders maintain a balanced lifestyle in order maintain their sanity and execute their plan effectively. A well balanced trader makes better decisions and is more disciplined. Automation is an effective means to reduce errors and improve profitability by allowing you a balanced lifestyle.

This is not to say that once you have automated your trading you can sit back and do nothing. All systems need monitoring and tweaking. It does mean though that you can spend your working hours more productively and efficiently. You can then use your rest hours to exercise, de-stress and focus on health and happiness. This in turn will ensure better trading results.

Get a life and automate your trading for maximum efficiency and effectiveness.

About the Author

To learn more about the exciting future of Automated Trading you can visit James’ Automated Trading Academy website to view a free presentation: How to create an Automated Forex Trading System that makes passive income week in week out.

Article Directory Source: http://www.articlerich.com/profile/James-Wilton/196350

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