Financial spread betting will always invoke two negative emotions in every trader in the FX market; these being are fear and greed. Traders often commit the tremendous mistake of shifting to stop losses or in simple terms, closing a position too early. This is often done in haste by the spread bettor as they do not want of the possibility of encountering a large setback. Quite often this is done simply based upon human emotions rather than analytic data and facts. They can also be derailed by way of pushing their luck much too often, in hopes of waiting long enough to begin raking in profit. This emotion is typically due to unrealistic notions that their positions will continue with the movements they are hoping for. They feel their investment has can continue to earn. Either way, one might end up covering their heads with their hands and saying “Why didn’t you just stick to the plan!?”
Algo trading programs might be a solution for one who keeps making errors like the two stated above. According to a trading seminar where in an ideal world where one puts their emotions away and they are free of emotional distracters, and will simply be basing decisions on charts, robots and analysis can likely do a better job within the speculative market than a the individual whom trades on emotions.
There are Algo systems used by big time traders that are quite too expensive for a small time spread better to use, but there are free alternative platforms such as Zignals and the FXCM trader. The advantage of these algorithm programs is that it allows the trader to engage the FX market without the need to entertain unwanted emotions that are naturally occurring in the environment that would later be the culprit in making big trading mistakes. It also liberates them from the need to always be on watch for trade opportunities while still providing chances to place trades 24 hours in a day.
Although these programs proved to be useful for anyone who is active involved in speculative trading, it is not intended to be sure fire cure for all the traders’ worries.