The recently technology advancement has broken down the barriers that
used to stand between retail clients of FX market and the inter-bank
market. The online forex trading revolution was originated in the late
90's, which opened its doors to retail clients by connecting the market
makers to the end users. With the high-speed Internet access and
powerful central processing unit, the online trading platform at home
user's personal computer now serves as a gateway to the liquid FX
market. Retail clients can now trade together with the biggest banks in
the world, with similar pricing and execution. What used to be a game
dominated and controlled by major inter-banks is becoming a common field
where individuals can take the same opportunities as big banks do.
Technology breakthroughs not only changed the accessibility of the FX
market, they also changed the way of how trading decisions were made.
Research showed that, as opposed to unable to find profitable trading
methodologies, the primary reason for failure as a speculator is a lack
of discipline devoted to successful trading and risk management. The
development of iron discipline is among the most challenging endeavors
to which a trader can aspire. With the help of modern trading or
charting softwares, traders can now develop trading systems that are
comprehensive, with detailed trading plans including rules of entry,
exit, and risk management model. Furthermore, traders can do backtesting
and forward testing of a particular strategy on a demo account before
commitment of capital.
When the system trading softwares were first introduced into the
store of trading tools, traders would need programming skills and a
strong background in mathematical technical analysis. With the effort of
system trading software companies making their products more adaptable
to mass market, the system trading softwares are now more user-friendly
and simpler to use. At this point, non-programmers with basic
understanding of mathematical technical analysis can enjoy the amusement
of system trading.
While system trading might not provide the 'holy grails' of trading,
it offers as prototypes or guidelines for beginners to starting trading
with sound mathematical model and risk management. Over time, traders
can develop trading systems that match their individual personality.
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