My first exposure to Trader Talk was when I heard it on the Trading Places podcast. It seemed like every Tom, Dick and Harry was pitching some form of automated software trading systems or some new system that would allow you to trade automatically without your involvement. I have to admit that at first I was a bit taken back. In less than a week, purchased exactly that amount of those automated bonds for my automated portfolio. For those unfamiliar with this type of Trader Talk, the conversation above is about a type of trading forum which can be found online and involves people who are willing to sell their trading systems for a very small commission.

There is one huge problem with this. The systems themselves are not designed to generate consistent profits and they are not guaranteed to do so. Many of them will fail and many will succeed, but the fact is that 95% of traders lose money trading these types of automated trading systems because they are not designed to profit consistently. That is not to say that they are not useful, because in some cases they certainly can be. In many trading situations, the ability to trade with discipline and to follow a set of rules can be extremely beneficial.

If you are considering automated trading systems there are a few things to look for. First, make sure that it is appropriately suited to your goals and time frame. Second, make sure it has been around for a while and has had plenty of successful experiences under its belt. Finally, make sure you fully understand all of the risks and requirements involved. This is a process that you want to be comfortable with and not something where you are gambling. Finding a good automated trading system is not difficult, but finding one that fits your financial goals and time frame can be a bit more of a challenge.