Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Currency Trading » Article
 

Product Information: The Mechanical Discretion Program




By Donna Baldwin

Many people starting out in FOREX trading quickly reach the opinion that most mechanical trading systems just don't live up to their claims. On the other hand, using a full discretionary trading system can be overwhelming...even for some experienced traders. There IS a trading method that has combined the best of both worlds and allows the trader to find an intermediate trading system of his or her own.

Let's start with one basic supposition: Mechanical trading systems simply do not work!

Okay, now that we have hurt some feelings, let's go back and clarify a little. If we look at the performance data on mechanical trading systems taken over time, they do not consistently show a good enough performance for a small to medium trader to consistantly trade effectively and economically. While you can certainly find "periods" of excellent profits and performance there are losses and expenses also found which would tear small traders to pieces. Another point is that while these systems may have long periods of apparent success, they also seem to have long periods of failure as well.

A key point here is that were you to begin using a purely mechanical system at the wrong time, you could be facing an extended period of losses before things turned around and began to show profit. Few small traders have the financial depth or internal fortitude to bear with such an extended period of losses before reaching a successful turn around.

However, you, and others, may make the point that everywhere you turn it seems that others are using mechanical trading systems successfully. While this is apparently the fact, many of these apparent successes are occuring in an uptick period, and careful observation of past activity will show previous periods where the same traders would have lost as much or more as they are making now. Also, many of these "successful" traders are using a secret weapon to modify the guidance of their mechanical systems.

What is happening in many of these cases is that the successful traders are using their own discretion to modify what the mechanical system appears to be telling them. They have many tools at their disposal including a multitude of indicators, charts, Fibonacci techniques and other technical analysis methods. Additionally some have enough experience to successfully integrate intuition, feel, and instinct into their final judgements.

Even when they experience periods of poor performance, adding the capabilities of their own brains to the results predicted by mechanical trading systems gives them a means of improving overall performance of their trading activities. Just like the mechanical trading system, they will have periods of poor performance, but the combination of a mechanical system with the power of intelligent discretion has given rise to a new type trading system. It is called Mechanical Discretion.

Mechanical discretion is relatively simple. As implied above, it is merely a structured way to bring human brain power and mechanical trading systems together to create a more flexible and more effectively reactive system of gathering and processing data for trading. A trader using Mechanical Discretion takes the results of a mechanical trading system and adds to it many of the types of analysis and indicators mentioned above.

A bad thing about Mechanical Discretion is that it requires a certain knowledge and ability for a person to be able to form and superimpose his or her personal analysis onto a mechanical trading projection in order to mold it into a final, effective form. On the other hand, a good thing about Mechanical Discretion is that, while some people have the education, background, experience, or natural feel for it, even relative beginners and those with limited experience or skill can learn the processes and techniques. In fact, the Mechanical Discretion program is intended to teach itself to the user.

Even so, Mechanical Discretion is not recommended for the beginning trader. It will be a much more formidable tool in the hands of someone with at least some trading experience and innate understanding. My wife likes to use this system and assures me that it is probably of more value to the experienced trader than the rank beginner or someone only slightly experienced.

It is important also for the beginner to learn the basics of trading, money and risk management, order placement and trading psychology before sinking money into another system that may be beyond their capabilities no matter how effective it is potentially.
 
 
About the Author
Donna Baldwin is an online poker player and FOREX trader. To start trading and learning to trade the FOREX with Mechanical Discretion, see the Forex Trading System Website at http://www.lentrica.co.uk/mec/?md=107 .

Article Source: http://www.simplysearch4it.com/article/49759.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/49759.html" as shown above and make it hyperlinked.



  
  Recent Articles
Forex: Pivot Points Calculation Rules
by Andrey Moraru

Product Information: The Mechanical Discretion Program
by Donna Baldwin

Forex Training: How to Read a Forex Quote
by Gregory DeVictor

Online Forex Broker
by usha rani

Forex Training - A Forex Trading Mentor Is The Key
by David Shephard

Educating Yourself for Active Global Currency Trading
by Margaret Dorsey

Trading the Forex Markets with the Forex Trading Machine.
by gregory wadel

North Finance Reviews
by Larry Perkins

Look Before You Leap - Why a Trading Education is Necessary
by Margaret Dorsey

Killer Forex Trading Strategy for Beginners
by Chris Robertson

Forex Trading Education: Jump Start Your Financial Future
by Margaret Dorsey

Forex Trader Forum, where forex traders talk about forex
by J. Martino

Forex Trading Course - Currency Exchange Made Easy
by Margaret Dorsey

Minimize Your Forex Trading Risk Through Forex Training
by Margaret Dorsey

Bold Insights on the Euro's Performance in the Forex Markets
by Marcus

Forex Trading Psychology. Are you ready to trade Forex?
by J. Martino

Forex - Currency Trading - FX - the right choice for YOU?
by Jay Slatcher

Risks of trading Forex in retail market
by Teddy Low

Can't connect to database