Then you come across an email regarding the Day trading Robot claiming that it can accurately predict how the market will behave and you can ride the next big tide before it even materializes. And you wonder…

Is it possible? Should I have one of those?

What we know. We know that the logic behind the Day trading software is sound. Traders know that the market behaves in patterns and there are indicators if the price of the stock will continue to rise or suffer a rapid decline.

We also know that big corporate investors employ the same type of software only in large scale in order to ensure future gains. We also know that as with other kinds of predictors, the Day trading software can make mistakes and the predictions may occasionally not materialize into gains. This means there is possibility of losses aside from gains.

We go back to the most important question: Should I buy one for myself?

The Pros

Assuming that the algorithms in the software are sound and assuming that it has been fed all the data it needs to make an accurate prediction, your Day trading software can predict gains in a regular basis. This is because that is the primary purpose for which they were developed, to identify patterns and predict future gains. Plus, the various software currently in the market today already have a proven track record of realizing gains.

You don’t need to be keen on studying the market. The day trading software does this for you. It monitors the movement of the stocks – hence, it always have to be running. It studies the market for you, identifies patterns and then makes recommendations. You just follow its instructions and watch the value of your stocks rise.

The pitfalls

You don’t learn the science of investing. As Robert Kiyosaki said learning how to manage money involves not just winning money but also losing money. You learn which “calculated risk” to take. However, since the Day trading software pretty much does all the studying and predicting, your tendency is to follow the advice and realize gain, not study how or why the advice was released. There is a way out of this though. Follow up your gain with interest on how the market behaved which led to the gain.

Promoters of the most recent Day trading software claim that their program can learn new patterns in the market

However, as programs go, this claim cannot be verified unless we look at the program codes themselves which, every programmer would hide due to copyright. Hence, when it comes to unfamiliar situations in the stock market, it is still best to study the situation as keenly and as carefully as possible before following the day trading software’s advice. This can be cumbersome errand and one that will be necessary to avoid great losses.

Conclusion

With or without the help of a day trading software, the nature of the stock market stays the same. It is still a place of losses and gains. Hence, it is still wise to invest only the money that you can afford to lose. Plus with or without the help of a day trading software, nothing can take the place of learning how to invest. The human mind is still superior to all computer programs. Although it may need the aid of software to better facilitate its functions, the human brain can still go beyond protocols which a software cannot do.

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First of all, you should know that Day Trading Robot is not the first trading robot that claims to be able to win in the stock market

There has been a long line of robots that were programmed to do just this. In backtesting, they did great. They doubled, tripled, and quadrupled accounts with little drawdown. However, when it was actually time to put these trading robots on a live account, they would usually fizzle out. They might last for a few days or months, but then they usually end up back on the scrap heap. This is the usual lifespan of a trading robot.

Many people have been burnt by scams and fishy trading robot schemes over the years

In fact, there’s a good chance that you have lost your money on a similar day trading scam before. This industry is notorious for things like that. Anytime there is big money involved, there are going to be unscrupulous characters lurking around. They usually end up giving the industry a bad name and scaring off any more potential customers. However, in my experiences, Day Trading Robot does not fit into this category.

The first thing that starts to ease a lot of people’s minds is that Day Trading Robot has a real office in Florida

You are actually given a real phone number to a real phone that is in the Day Trading Robot headquarters. You can talk to a live person or leave a message and they’ll actually call you back. Their customer service is unparralleled. In this industry, this is a big thing. When you start seeing companies that don’t have a phone number of a brick-and-mortar office somewhere, you’re just asking for trouble. Having a company that actually stands behind its products is a good bet that its not a scam.

Another way to test a scam is to see if it has an unconditional money-back guarantee

If someone doesn’t guarantee that you’re going to like their product, then you should probably stay away. Without confidence that a product will work, why would you ever buy anything?

This program has an eight week guarantee attached to it. This should ease any fears of it being a scam.

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The strange thing was as you see the as far as most FTSE trades were concerned the index actually opened and closed within 15.74 points of each point but the story of the day was the tremendous range trading in between. Perhaps we were lucky and perhaps we just managed to “get into the zone” for the best part of the day but to be honest that would be making more of it than it actually was. A lot of the trades were so mind stunningly simple to make that it would “over egg” the report to make anything more of it than usual.

The day kicked off with better than expected results from major UK Bank Barclays which though as I said better than expected still didn’t manage to fire up the markets to the degree that they perhaps would have done in the halcyon days before the present muddle that we find ourselves in. Still at least they didn’t throw the market into a downward spiral which has quite often happened in the past. With net profits of £6.08Bn they were 14% down on the previous year but up on analysts expectations so as a result rose by some 10% on the day.

I think the key story lay “over the pond” as we Brits like to affectionately refer to the Atlantic in that what was fast emerging from various sources was a slightly different take on the so called “financial bailout” or stimulus plan as the “Obama” Whitehouse would have us view it. The plan being discussed now was one with which a major component was to include a large degree of private funding from a various number of sources that would be underwritten by various Federal Agencies.

Basically the markets are running scared now and looking for a gift and one with which there are very little in the way of surprises. This as you could imagine does not exactly fit the bill and the end result was market which started by plunging 60 points straight after the opening bell and then spent the rest of the day see-sawing between 8300 points and the lower 8200’s and ultimately finished at around the 8237 mark.

One of these days Politicians will learn that the best way to stabilise or control the markets is to actually limit the number of surprises it experiences and therefore altering a large part of a hitherto announced financial package at the last moment falls into the category of what is known as a surprise.

Bankers might be incompetent but banks controlled by politicians, now that’s a concept guaranteed to strike fear into the hearts of most free thinking folk. Heaven save us from Politicians.

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Whatever research amateur traders do while choosing a trading method is almost always based on a gut feeling rather than on important aspects that actually make your profits run. It is important to note that methods for trading in forex markets must necessarily include risk management, discipline and psychology.

The gut feeling that induces amateur traders to buy training products is usually due to hyperbole used in promotion materials of training courses. They use phrases like ‘jaw dropping secrets of forex markets revealed’ or ‘unlock the mysteries of Forex trading.’ More often than not, the reality dawns upon them soon after they have purchased the course and they find that they had already heard about the method before.

Some amateurs will look for a complicated formula under the impression that anything that gives you instant profits cannot be simple. To their disappointment they find that the formula is actually so simple that they could have thought of it on their own.

The basic why amateurs fail to succeed in forex markets is thus not devoting time or ignoring to learn the full process of trading.

If you are an amateur looking for a method for trading forex then do not make that mistake. Most trading methods available are not complicated but a simple set of rules woven together in an easy manner that are applied in an uncommon way. Complex systems are for banks and obsessive computer enthusiasts. Remember the basic fact of learning: if you cannot understand it, you cannot possibly apply it.

Never ever skip through the learning process. Make sure that you learn the rules of the game: when to set up a trade, the price at which to enter and when to exit. Any program that does not teach you when to exit is not worth it. Neither is the one that does not show you how to protect and manage risk in the trade.

You need to learn how to apply your method in a timely manner, hourly, daily or weekly. You can become a better trader only if you are able to learn how the various aspects of forex trading work in tandem with each other.

Getting an edge in the markets is not complex methods but simple and powerful methods that use only a few indicators.

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As is normal with all debates, there is an equal number on either side, some traders swear by technical analysis being the best while other would have it that by analyzing fundamentals one can read the market better.

Fundamental Analysis

Traders using fundamental analysis for potential trades have to time the market to be able to move along with the market. This is possible only if the trader has chosen day trading to be his preferred plan. As a day trader you are ‘always on’ and have to be on your trading platform always.

The markets are constantly reacting and discounting to information from around the world. The reaction times can be as short as instant. You miss the action triggered by the ‘surprise’ report if you cannot be at your trading platform in a minute.

This translates into a situation where the market’s reaction to data is important while the data per se has no relevance. What is important here is that most fundamental data is in the shape of projections. The news is confirmed only when there is an official release to authenticate the ’projected’ data. This makes timing even more important. If you can time the markets then only you stand to make short term instant profits. If you initiate trades based on fundamental analysis but have not chosen the right time then you should be ready to suffer a loss.

Technical Analysis

Traders using technical analysis are in an advantageous position as they have maneuverability in the markets. The fundamentals are reflected in the technical analysis. The trends that you see in technical analysis are based on certain criteria. When you ride a trend you are reasonably sure that it is appearing on the chart due to the changed fundamentals.

When you are trading on technical analysis you have time in your hands. The trend itself allows you that time to generate fast and instant profits. At the same time, technical analysis by its inherent nature indicates when the trend is expected to run its course. The price movements in forex markets dictate what trades you should make. Either way, you will find that your profits run in forex markets.

The bottom-line is that technical analysis is easier and allows you enough time to initiate trades. You need not be at the terminal all the time. You can increase your profits by looking into the end-of-the day trading concept recommended by Bill Poulos in his Forex profit accelerator course.

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