Trading Foreign exchange is one strategy to beat the recession, but you must grasp some significant facts or you could lose more than you make. Though there are fortunes to be made, not everybody is a winner. Over Xmas I heard of a family acquaintance who for a period of time had been trading for fun and profit. Putting away a clean sum on a constant basis. However that changed quickly due to the upheaval in the Forex markets. He not only lost his shirt but his house and the family farm too! Amazingly he is sort of philosophical about it is dealing with it all very well considering.

Of course this should never have happened, especially to someone as experienced as he was. So what actually went wrong? Quite simply he became greedy, trading by the no longer trading by a system. He was not running stop losses and when he had a series of losses he just poured more money to try and win back what he lost. In short, he was nolonger trading he was gambling, he let his emotions take over and he lost his edge. No longer trading by a winning system but more like a craps player who just doubles his bets on each loss. This is exactly the way not to trade Forex.

This is just one of the many areas where a Forex Robot has an edge over most human traders. They trade by a system and they don’t get emotional. A good robot can recognize and adapt to any market condition and trade reasonably. It can pick the best time to enter and leave a trade, setup a stop loss to reduce risk and even know when not to trade. It is in periods of high volatility that large profits are accumulated by the best traders. However there’s little margin for mistakes when you’re trading the forex markets. Having the correct tools and trading system for the conditions is what separates the winners from the losers. The two main tools for day traders, are Expert Advisors Forex Robots and Signal Generators. Sometimes called push button trading, a signal generator tells you when to buy or sell. They do not trade for you. This is fine in a moderately stable market where price changes are smaller and more likely to be following a trend. However in a volatile market, rapid reaction time can make the difference between many winnng trades or a loss. This is where automated trading comes in. Often referred to as forex trading robots, these are advanced computer programs that will make trades for you. You just need to setup your trading preferences and let it trade for you on auto-pilot.

Forex GridBot is an one of the most recent forex robots to be released for the Metatrader4 trading platform. Till not long ago, Expert Advisors ( EA ) were available only to corporate traders, large financial institutions and banks. Until the previous couple of years, EAs were well out of reach for anybody but the most dedicated professional traders.

When I first read about the Forex GridBot what suprised me the most was its cost. How could something that claims to deliver so much profit, sell for so little? Software as robust as this regularly costs thousands of dollars. Can an Expert Advisor in this price range actually trade profitably, absolutely on auto-pilot? Well I had my doubts, it just did not seem possible.

More coming on Forex Grid Bot soon.

See my Forex Grid Bot Review

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