Picture this situation. You just entered a trade based on your entry rules. The trade is profitable, and the market is continuing to move your way. You then get your exit signal. You know you should get out of the trade, but the market looks great. You are sure you could make more money by staying in the position. So, you ignore the exit signal and stay in the trade. All of a sudden, the market turns against you. You try to exit but the liquidity has dried up as other traders pull their orders. By the time you get out of the trade, you made less profit or even worse, lost money on the trade.
The second biggest reason that traders lose money is not following their system’s trading rules. A well designed and tested forex trading system gives you a statistical advantage in the market. However, if you do not follow those rules, you lose the advantage and will ultimately lose money trading. An automated trading system greatly increases your profitably, since the system always follows the programmed trading rules.
SOURCE: http://www.forex-systems-truth.com/articles/article-why-use-an-automated-forex-system.shtml
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