Forex trading advertised nowadays by most brokers and peddlers of trading software is often presented as an intra-day business. As such, many aspiring traders are lured into the business with the thought of earning $200-300 every day.
The truth though, as most people learn, is that the amount you earn is a direct consequence of the amount of your deposit. The less your deposit with your forex broker, the less you can profit with – and risk – with each trade. The fact is, intraday trading could be very volatile and quickly wipe out the account of an unwary trader. With so many price fluctuations it could be difficult sometimes to determine the underlying predominant trend.
However, intraday trading offers the advantage that since one is going for about 10 to 20 pips per trade, one can risk less (about 20 to 30 pips) compared to those who trade on longer-term charts and have to place a 50 to 100-pip stop-loss to gain 200 pips.
Intraday trading may therefore be more suitable for someone intending to risk less money, i.e. starting with a mini account with balance of about $500. Sticking to the rule of not risking more than 2 to 5% of one’s account on any one trade, a 20-pip stop-loss on a 1 minilot trade would be risking 4% of a $500 account. Many intraday trading systems could easily achieve a profit target of 20 or more pips per trade on such an account. If one wanted to take longer-term trades on such an account it would be definitely wiser to trade with micro-lots instead.
That said, intraday trading could still be potentially very profitable – a good trading system could recognize and generate signals for such profit opportunities. Monitoring the charts for these trade opportunities and executing them day after day could however be a toll on even the hardiest trader. This is where installing an automated system would be indispensable. It is extremely difficult however to find such a software or robot that is robust enough to trade without large drawdowns and account losses.
Most automated robot software are only good enough when back-tested on previous time charts – subjected to the rigors of real-time trading they fail to stand up to the test. One of the best trading software on the market however, and probably one of the best ever written for commercial purposes, is FAP Turbo. This software was built from the modified code of the already best-selling, wildly succesful Forex Autopilot System. Even though the sales copy on the website may seem slightly banal, there’s nothing that can be said against multiple proof s of profits in live trading, on multiple accounts sizes! As they say, results are the bottom line. Definitely this would be a trading system worth checking out, and for a low price of $150 it is almost a steal, concerning the potential profits one could make from it.
Thus it can be said that such a good system could easily out-perform the day-trader. Taking the strain of having to spend countless hours monitoring charts and indicators, waiting for trading opportunities, it would allow one to build even a the small capital of a mini account to desirable profit targets. It would also give one the opportunity to develop other trading systems.
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