FOREX EXPERT ADVISOR

FOREX EXPERT ADVISOR VERSUS HUMAN.

Expert advisors are soft wears installed on the plat form to carry out trading activities on our behalf, for the soul aim of making profit. Expert advisors are no "Holy Grail" either; they are prone to mistakes just like humans.

The question is, should we trade our accounts by ourselves or should we allow the expert advisor do it for us? Humans fail, expert which certainly is a product of humans fail too. The basic thing is to determine which one we should rely on in terms of trading.

Let us have a look at forex trading to understand how both the expert advisor and human can fair in the act. One might ask why I refer forex trading as an act. My reason is simple, trading profitably in forex can be credited to one's trading system, good capital and money management ability, breaking it down further we use skill and strategy to attain our goal which is maximizing profit, and this means that you must have skills and a strategy that works for you to make profit in the act. These basic things will guarantee a traders success in forex trading. Visit www.elbonfx.com for your free forex signal and news updates.

We need to understand how forex works before we can master the act. Have it at the back of your mind that whatever price action you see on the price chat is a reflection of traders responds to events happening in the forex world. We need to understand the factors that influence the movement on the price chat and how we can use them to our advantage. For updates on forex daily news, visit www.elbonfx.com .

The two basic factors that move price action in forex trading are technical and fundamental analysis. I would want to use some examples to show you how technical and fundamental analysis can play vital roles to determine price action.

In technical analysis, let us use Fibonacci as our Indicator, we all know that a good percentage of traders all over the world use Fibonacci ratio to calculate resistance, support and retracement levels. It is quite true that trader watch price actions at these resistance and support levels to determine what action to take, if traders using this fibo theory makes a decision based on a support or resistance level, it will sure affect the price chat e.g. traders will not want to take a buy position in a Fibonacci resistance level, if the level has not been broken. If majority of traders takes this stand you will certainly see a reversal at this point because no one is buying the currency at this point. The basic thing here is that technical analysis can affect price movement.

Let's go over to fundamental analysis. Since this factor has to do with news that comes out from the major currency pairs, it will certainly affect price action on the price chat. Let's take GBP (Great Britain pounds) for instance, if the GDP (gross domestic product) news comes out positive for GBP, traders will react by buying GBP because of the positive news. Again GDP (gross domestic product) is a vital tool that determines growth in an economy, based on these development traders will buy GBP, making it appreciate in value this is simply the law if supply and demand. That is basically the law that determines the trend in forex trading, when people buy more of a currency, its value appreciates, and when they sell more of a currency, the value of that currency depreciates.

Having all these in mind one can understand that both the technical and fundamental aspects of forex checkmates price action in forex. One point I will like to make here is that in as much as the value of a currency tends to appreciate when news favors it, traders are well cautious of their technical indicators, this will help them determine when the trend is weak to enable them collect their gains or take another position. For traders using fibo, they will be looking out for the support and resistance levels, and how price reacts in these levels. All these decisions and counter decisions are responsible for the price actions we experience in our price chat.

Now we have a good understanding of how the two aspects affect price action in forex, let us go over to the day's issue, Expert advisor versus human. EA's as we earlier said are programs that carries out trading activities on our behalf, they enter and exit trades when they dime fit. Forex trading with expert advisors can give you time to do other things, you just need to buy it and install it in your platform, activate it when you want it to trade or deactivate it when you don't want it to trade. Some expert advisors cannot wok without the system being powered; your system has to be ON before they can carry out a trade.

Experts do the same work that auto pilot does in internet marketing, for more on making money on the internet go to www.makerealmoneyontheinternet.com or www.mrmisupercash.com. To be candid I don't see experts as an option in forex trading, human beings are better and more reliable provided we have a trading system that works. For more on forex trading system, visit www.elbonfx.com .

We consider the two aspects of forex before we take a position, and this consideration goes a long way in making our trades, but the expert advisor finds it difficult to analyze and understand fundamental news, I have seen situations where a position goes against an expert advisor, it is never a sight to behold. Again some expert advisors have been designed to trade fundamental news, the candid truth still remains that experts can't predict the traders mind. Technically an expert might deliver but could still be in the trade and an open position goes against it causing serious damage some times leading to a total liquidation of the account. For your EA's visit www.clickbank.com.

Some expert advisors trade against the trend in a bid to make some pips, in forex the trend should always be your friend, going against the trend is like going against a moving train, it is always disastrous and I strongly advice against it.

Till date science has not come up with basic ways to predict the human mind, price action is a reflection of peoples decision and events(news) which can be spontaneous and unpredictable, when sudden events happens, leading to sharp reversal, what will be the faith of the expert advisor?

In conclusion and with the facts established we should note that the expert advisor lacks the ability to predict the traders frame of mind which is a key factor to price movement in your price chat, and is prone to make mistakes too, the question is, would we prefer to build a trading system that works or depend on the expert advisor made by man? I will really appreciate it if you tell me what you feel about my question and will want to use this article to encourage traders, dedication is the key. Visit www.elbonfx.com for a trading system that works.