When people think of Forex, the images that come to mind are similar to those in a Hollywood movie: a high-energy environment, fast moves, and big profits. Even when you are using automated Forex trading systems, there is a tendency to look for systems that have many trades and many winners.
While a system that you trade frequently can be exciting and even fun to trade, you may not realize that frequent trading of your system can cost you thousands of dollars in lost profit. By the end of this article, you will understand why when it comes to automated forex trading in Nigeria, trading less is often more.
The downfall of speculative forex trading systems
The truth is, trading is one of the most mundane and boring things you can do if you're doing it right. Excitement and fun come from uncertainty – you accept trade and hope it's a winner, but you don't really know where you're going. For me that is not negotiating, it is gaming. Real trading runs like a business, with automated processes for collecting pips from the market, and you know roughly what to expect from your automated Forex trading system in the long run.
Why trading less is more in Forex
Having an automated Forex trading system that you trade frequently also means that you pay more in spread to your Forex broker than if you used a trading system less often. Spread costs add up to thousands of dollars in the long run, so with a system that trades frequently, you will only make big profits for your Forex broker, and not for yourself.
An automated Forex trading system that trades less is to your advantage because you are saving a significant amount of money on distribution costs and keeping more of the profits for yourself.