You have a Forex robot and ask yourself why is this damned thing burning my money, or did I get screwed by this trading algo developer at all? Yes, you got screwed, but it is not the robot to blame. It is simply Forex and the big banks.
There are only a few main currencies, mostly with random moves and occasionally the transient event spike. No one can trade random fluctuations and for the case of news, well, others knew it either before you, or your broker gives you the worst execution there is in the market.
If you want to trade on the bright side of the markets, choose stocks. For one, there are thousands of them. They move mostly in sync also, but not all and not always and there are more and more ETFs with individual idiosyncrasies. Even more important, stocks have often a real price driver, a force that results in predictable trends, possibly for a long time.
Do yourself a favor and switch to stock trading if you have difficulties with Forex. Essentially it is not your signal generating robot that is responsible for trading signals that don’t work. If prices are random the best trading signal system has to fail. It can’t be different. That is the implicit definition of random.
Of course, many stocks move also randomly most of the time. Generating signals in such a situation is also a futile attempt. To combat that you have to select your stocks. Be aware, the selection changes and that depending on your trading time frame.
Trading the stock of a mature, not anymore growing company, that is doing business well, will result inevitably in hard times for the trader.
The future of the stock is clear. The company is there to stay the way it works and is now. Its stock will be valued almost fairly and the result is a slowly and randomly meandering stock price. This is an investment where you can only lose, in case of adverse news. At its best you will break even with a giant company stock, because its small random oscillations are not predictable, not by the best trading system.
Your choice should be clear. You can choose almost everything else! Momentum and growth stocks have strong upwards trends. Turn around plays may have one in the future. Small cap and penny stocks offer you their very special advantage.
Just shun the typical investment targets, the big companies with the typical scenarios loved by investors. Everything is Ok and for the next year 10% more earnings are expected. As I said, the only surprise these monster stocks can deliver is the negative one.
Trading signals for Forex? In some way currencies are the stocks of economies. It shouldn’t come as a surprise that they behave like the dullest of the dull NYSE dinosaurs.
