With a veritable army of Forex robots, trading courses, strategies and pundits invading the net and ever newer techniques and indicators available it can make it hard to select the best approach that fits you. But in the end your trading style must - and eventually will - reflect the sort of person you are otherwise it won't work.
If you are a 'hands on' type of person, who likes to understand the nuts and bolts of how something works, then - poor you - you may need to tread the long and torturous path of learning how to analyse the markets yourself. Here are some tomes to graft: for many the bible of TA is Martin Pring's "Techncial Analysis Explained", but also try the popular "The Elliot Wave Principle" by Frost and Prechter, to catch those turns. Prefer trading the news? Just Google it to find sites related to fore.
If you are too busy to spend all day chart-gazing then you could try an automated trading approach. The Meta Trader platform provided by most mainstream brokers allows you to pre-programme your charting package to automatically take trades on your behalf. Wallet-friendly Forex broker's are available there, just Google it to find the best for you particularly with competitive spreads and a rebate on trading costs.
Or you can leave the hard work of trading down to somebody else: Forex Robots are completely hands free and require no prior knowledge to operate. There are numerous articles on the internet covering the different systems available it can be found easily on internet. Make sure you do your research - there are some good robots out there but also a lot of very poor ones too. From what I have heard the better robots such as the 'F.A.P' range developed by Marcus Leary, seem to boast average returns of anything up to 20% per month - which if true is pretty good.
Whichever system you decide to use, however, there are some fundamental investment decisions you cannot avoid having to make without the aid of artificial intelligence.
And these decisions mainly boil down to money management, and whether or not to continue trading.
Once upon a time on Wall Street traders made millions trading beans using a 10 day moving average but try doing that now and see what happens! Ultimately almost every strategy or robot has a lifespan but how can you tell if its best days are over before you lose all your money using it?
One useful approach is to chart your strategy or robot's returns as an equity curve in excel or some other analysis package and analyse the equity curve to make decisions about whether or not to continue trading. For example you could run a 50 day or 200 day moving average through your equity curve and when returns fall below the MA you switch off the strategy and wait until it comes back up over the MA before switching it back on. In fact you can use most of the chartist's regular tools such as momentum, trend-line analysis and chart patterns to analyses your equity curve and this gives you further objective decision making tools.
Another good idea is to diversify, so that you have several strategies working simultaneously, that way if one fails the other's will make up for the losses.
Money management is the other fundamental area where traders can win or lose vast amounts. It can be tempting, for example, to increase your trade size after a winning streak - but be careful - it is often when strategies reach their peak performance that they are most vulnerable to having a sudden draw-down, just as peaks in the markets usually come at the latter stages of a trend. Again you need a definite strategy for money management with rules about how you manage risk. Don't leave it up to your emotions - and never ever fall into the trap of thinking you have found a 'golden goose' because there isn't one out there - you're just playing the odds remember.
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