Auto Forex Trading

The Great Advantages of Automatic forex Trading

Today’s modern world offers a lot of convenience for people. There have been great changes which brought about many inventions and critical lifestyle changes for most people around the globe.

Life was quite simpler before, many people engaged in trading were able to trade goods and/or services within a specific location. After a while, when it was already possible to travel on the seas, trading was done from different places. Today, almost everyone is engaged in a certain trade, for him or her to be able to live a normal life able to get all their needs.

These days, people who have no work, or does not earn any income whatsoever goes hungry. If you have no money, then you can’t buy food, shelter, clothes, and other necessities. We live in a modern world which requires people to be effective and hard working individuals.

Perhaps the most popular of all trades is the so-called forex trading. You probably have heard of it already. In this type of financial market, currencies are traded. Yes, currencies; and did you know that you can really earn a lot from this kind of trading?

Before the internet was even introduced into the global market, forex trading was only for big corporations, the rich ones or the elite. Most large organizations also take part in this trade. But now, things are different. Because of the help of the internet, people from around the globe can actually do forex trading, whether you’re rich or middle class.

If you have an internet connection at home, then you can do your trading there. If you want to be part of the online forex trading, it is best if you can secure an effective system which you can use in your trade. If you have a system, you can now generate signals.

Automatic trading signals will help you a lot in spotting opportunities in the forex market. These opportunities may just be the ones that you’ve been waiting for to hit it big in the market.

You can also get trading signals from the daily newspaper, radio, television, and online forums. But there are times when these signals are somewhat biased. There is therefore a need for unbiased automatic trading signals.

To be able to get automatic trading signals, the first thing that you should accomplish is choosing the best and the right system. There are many systems available on the net. In case you don’t know yet, a system is a method, software, or course that is designed especially by forex trading experts.

These systems are not offered free, however, you can avail of trial versions available on the internet. Before purchasing any system, make sure that you have chosen the best one. It is wise to stick with systems that have been in existence for a couple of years and have established a reputable name in the business. This way, you can stay away from individuals who just want to fool you into buying a system that does not really work.

With a little research, and participation in discussions online, you may be able to get a good idea on which system will work best for you.

Once you’ve chosen the system, you need to subscribe for automatic trading alerts. After you’ve made a subscription, you can now receive live alerts which you can use in your currency trading.

These automatic trading signals provide alerts about entry and/or exit points for the different major currencies (in pair) for example the US dollar and Japanese Yen or the Euro and US dollars.

These alerts are all provided in real time, making possible for you to tap into your forex trading all day long, and all throughout the week.

Each time an opportunity turns up; you will receive an instant automatic trading signal. You can receive the signals through your email. But if you are a busy person, who needs to go out more often and carries a cellular phone with you, you can receive the alert on your phone, and most providers makes no extra charges.

Usually, most providers offer added features on their automatic trading signals, like the one mentioned about receiving alerts on your cell phones, to stay competitive in the market.

Automatic trading alerts can really help you a lot in making decisions pertaining to forex trading.

Automated forex Trading System: Faster Execution Means Increased Trade Volumes

The concept of automated forex trading system is mind-catching.

Before the automation of the forex market, exchange-traded futures market was the first to switch on automation. Then, the traders on the Interbank spot FX market decided to catch up with the latest trend and moved too to the new system.

Automated forex trading system enables traders to execute their trade on spot forex market automatically and anytime of the day, based on existing technical indicators and custom trading rules. There are various features included in the automated trading system, such as:

• Automatic trailing stops especially if the trader is losing in a particular trade position;
• Account equity management;
• Stop and/or limit orders;
• Discretionary market orders; and
• Various technical analysis indicators within your discretion for enabling trend-following systems.

Automated forex trading systems supports most of the following indicators (the technical support will depend on the technology used as well as the available features of the system):

• WMA (weighted moving average);
• EMA (exponential moving average);
• SMA (simple moving average);
• VMA (variable moving average);
• TMA (triangular moving average);
• TSMA (time series moving average);
• WATR (wilder’s average true range);
• VHF (vertical horizontal filter);
• Standard deviation;
• Trailing stops;
• Mass index;
• Fixed limits and stops, and others.

The success of the automation process to the forex market is attributed to several factors, such as the following:

• Its ability to perform or execute trades in real time. Because of the automation, a trader can close trades within a few milliseconds. It is impossible in manual systems, as previous trades are normally closed after several hours. In addition, there are also instances wherein a trader incurs several losses in a row that prevents him from making any fresh transactions. Thus, with automated forex trading system, this problem could be avoided.

• Its ability to greater diversification. With automated trading system now in place, a trader can trade in various local as well as international markets within varying time zones. In other words, you can place trade or close deals with different traders from various markets around the world even at the middle of the night.

• Its ability to analyze short-term data. This feature is not available in manual trading system. Thus, traders using automated system have the bigger advantage since they can predict market trends in less than an hour.

If you will consolidate the features as well as the benefits of automated forex trading system, it will give you a solid conclusion: with the forex market on automation, you will be able to place more trades on a single day, thus increasing the average volume trades daily.

To further clarify the conclusion. Let us take the following scenario: If you are trading using the manual system, you will notice that it takes time before a trader confirms if he will accept your deal or not. He will look on the market condition first as well as the exchange rate of the currencies that you are trading with. Thus, if it takes time before a transaction will be finalized; there would be fewer trade volumes.

Now, if you are using the automated forex trading system, the evaluation of exchange rates and market conditions could be done within a few minutes, since forex data are now updated in real time. Probably after less than an hour, you will be able to take your position whether you will push through the deal or not. If a forex transaction per trader is averaging within an hour, a single trader can place as much as 8 trades within the regular trading hours (if he is following the day trading schedule) and additional trades beyond the regular trading hours. There are thousands of traders in just a single market who can place such average number of trade per day. Combining it with the number of forex markets around the world, the figure is just huge enough.

In addition, the technology is changing continuously, thus there is a tendency that the average number of trades per day will increase, thus a possibility of increased trade volumes on daily basis. With faster trade execution, that is a certain possibility.

Be thankful, the forex market is now at the helm of automation. Transactions are now faster, and earning money through forex trading is now easier.

The Realm of Automated forex Trading System

Just how important is an automated system to the forex trading system?

Before we answer that question, let us first determine how large forex trading market is. From there, we will know the importance of automated systems for the forex market.

It is true that the forex market is the largest market around the world not just in terms of average daily turnover and average revenue per trader. It is also the largest market in terms of participants.

You name it, we’ve got it. Take a look at the following:

BANKS– they are not just for saving money and lending capital to entrepreneurs, but they are one of the major players in forex market. Banks cater both to large quantity of speculative trading and daily commercial turnover. Well-established banks can trade billions of dollars worth of foreign currencies everyday. Some of the trades are undertaken on behalf of their clients, but most are through proprietary desks.

COMMERCIAL COMPANIES– these commercial companies trade small quantities of foreign currencies compared to larger banks and their trades produce small and short-term impact on the market rates. However, the trade flows from transactions made by commercial companies are essential factors with regards to the long-term direction of the exchange rate of a certain currency.

CENTRAL BANKS– central banks play an important function in the forex market. They have the control over the supply of different currency, inflation, and interest rate. In addition, they have also official target rates for the currencies that they are handling. They are responsible for stabilizing the forex market through the use of foreign exchange reserves. Their intervention in the market is enough to stabilize a certain currency.

INVESTMENT MANAGEMENT FIRMS– these firms commonly manage huge accounts on behalf of their clients such as endowments and pension funds. They are using the forex market to facilitate transactions, specifically in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases.

RETAIL FX BROKERS– they handle a fraction of the total volume of forex market. A single retail forex broker estimates retail volume of between 25 to 50 billion dollars each day, which is estimated to be at 2% of the total market volume.

SPECULATORS– these are individuals who purchase and sell foreign currencies and profit through fluctuations on its price as opposed to popular methods such as interest and dividends. They perform the important role of transferring the risk to individuals who do not wish to bear it.

In forex market alone, there are already six major players partaking on the $1.8 trillion worth of daily turnover. With a large number of forex players, there is really a need in switching from manual to automated forex trading system.

Among the aforementioned major forex players, the automated trading system is of great advantage to the speculators. Since they focus on the price fluctuations of various foreign currencies in order to profit, the real time data analysis will help them determine trades that will give advantage to them.

There are several automated forex trading systems available in the market. There are also automated forex systems that are offered for free or as part of their trading account acquired from their forex brokers or agents. Such complimentary system packages are typically elementary trading system. Thus, if you are looking for more features, you can avail of it through additional payments.

There are two types of automated forex trading system. These are discussed in the following:

Desktop-based system- all forex-related data are stored on your desktop’s hard drive. This system is unpopular to forex traders because all data are susceptible to computer virus contamination and other security problems. Worse, when the computer malfunctions, all essential information might be lost and cannot be retrieved (unless you have some back-up files of your own). However, it is little expensive compared to the other types of automated trading system.

Web-based system- the security of your forex account and other data are provided by your web-based provider. These are hosted on secured servers. It is also convenient in the sense that there will be no software required and it is universally compatible with your Internet browser.

You may also try different automated trading system demos first so that you will be able to determine the automated forex trading system that suits your personal preference and needs.

Even if you are just a small-time forex player, it will be to your advantage if you will use an automated forex trading system for your future trades.

Making Money with Automatic forex Trading Software

Money is used everyday. You use it to buy all the things necessary to make it possible to live your everyday life. You use money to purchase food, purchase gas for your car, pay for your utility bills and you use money to get your children the best education you can possibly give them.

It is a fact that money is one of the most important things in life. This is why there are trading systems available that trade world currency.

Forex is the most liquid and largest financial market in the world. This market literally operates 24 hours a day, seven days a week in the whole world with trillions of dollars being exchanged everyday.

If you are a trader, you would really want to consider trading in forex. Besides, who wouldn’t want to trade in the largest financial market in the world? It is a fact that forex can create the possibility for you to earn high amounts of income.

There is even forex trading softwares available to help you with your forex trades. This type of software can really help you make money in forex by automatically buying and selling currencies for you.

If you are a speculator, forex automatic trading software is the best software for you. You can choose which kind of software you want. In fact, when you sign up in an online forex trading website, some of these websites can offer you free automatic trading software as a part of their promo by opening a forex account with them.

However, this free software that websites offer you can just be a demo package with limited features. The website will usually require you to make an extra payment for the use of the full version of the software.

There are also different forex trading softwares available in the internet for use or for download. You might want to try out the demo version first before you buy the full version. By doing this, you can try out different forex trading software for free and determine which software you are most comfortable using. You should consider that as a forex trader, getting an automatic forex trading system is essential in today’s world of forex trading.

There are mainly two types of automatic trading software available. One is the web based programs and the other is the desktop based programs. It is up to you to choose which program you want and is also up to you to determine which program is much easier to use in assisting you with your forex trades.

Whether you choose an online-based or desktop-based forex trading software, you have to know that the most important factor in using this software is the internet speed. It is recommended that you should have a high speed internet connection as a simple delay in information can cause losses.

In desktop-based software, the trading data is stored in your hard drive. However, you will be responsible for the security issues like hacking, viruses, and crashing hard drives. Therefore, it is essential to devote a single personal computer for trading forex or using computers that are especially made for trading forex, which can be expensive.

In web-based software, security issues are a problem the provider should take care of. Since there is no required software for you to download, it is much more convenient to trade. And, web-based forex trading software is also much more convenient for forex traders who travel a lot. This is because you can access your forex account anytime and anywhere you are in the world as long as there is an active internet connection.

However, in web-based software, you have to pay a minimum monthly or annual fee for maintenance unlike in desktop-based software, you usually only have to pay a one time fee for download.

Both types of software has its own advantages and disadvantages, it is up to you to determine which kind of forex trading software can benefit you most. Try to consider your lifestyle when it comes to choosing which software you need. For example, if you travel a lot and you need to access your forex account frequently, then the web-based software is the right software for you.

These are the things you should consider when choosing forex trading software. As much as possible, you should choose automatic forex trading software to really get the benefits you want. Also, choose software that will include real time data streaming to keep you up to date with the different changes in the forex market.

FX Megadroid

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