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This is the part of CHTrader that reveals the most exciting opportunities. Price analysis is only a part of the necessary ingredients for success in trading. It is a widely held misconception that trading is purely analysis of prices to achieve entry and exits in a
market. Those traders who are under this misconception are forever chasing what is known as the Holy Grail or the perfect analysis method which gives perfect entry and exit points every time. Because the Holy Grail is at worst non-existent and at best only fleetingly available, much more is needed.
Analysis is certainly a necessary part of trading, and it is essential that the analysis goes on
around the clock when you are asleep or doing something else. This automation is also a
necessary ingredient. However, the results of this automatic analysis are only a part of what you
need to round your whole approach to trading. Most brokers will confirm the well known fact that
there are many traders who are highly proficient in their raw market analysis but who never seem
to accumulate much ongoing profit or income from their superior analysis abilities.
This is where trading skills come into the equation. These skills include good management and
effective methodology in entering, exiting, re-entering the market, managing risk and adding to
your positions in a managed way to compound your positions to achieve growth. All of this would
represent about two thirds of the trading task, where the price analysis would represent only
about one third by importance.
The CHTrader automatic management performs the task of providing you with a superb tool to manage your entry and
exit points into the market. There are extensive mathematics in the management, which automate
your setup inputs to achieve quick results when you get your alerts to aid you in knowing whether
to enter the market, how much to buy or sell, and how to manage your risk. All this is an
automated extension of your own decision making process.
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In the excitement of the moment when we get an alert, without the management the most
experienced of us have great difficulty working out the details and size of a trade subject to our
trading rules. It is a complicated process to trade within even simple parameters to achieve
trading account growth. The management forces you to trade consistently and according to your
method rules and performs the task of giving you an instant answer subject to those rules, when
you get an alert. Without such a tool it is easy to understand, for example, why it is so common for
a trader to wipe out all the gains from a good trade as a result of arbitrarily piling on the contracts
in the next trade based on intuition. Equally, after a few losses it is common for a trader without
management to revert to a gambling approach in an effort to pile on the contracts to recoup
losses.
With CHTrader, not only is a market entry signal given automatically but also the following benefits occur.
- Market exit point
- Stop losses for both currency pairs
- Quantities to be bought and sold
- Automatic ongoing analysis setup after a current analysis ends
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