Using Automated Forex Trading Systems

August 18th, 2010

Even if you’re new to the foreign currency exchange marketplace, you’ve probably already been bombarded with offers and advertisements for automated forex robots, and automated forex trading systems similar to autopilot systems. Though these are two different things, they both have in common the goal of automating the trading process in order to “guarantee” profits. Of course nothing can “guarantee” profits, but particularly for beginners, these systems can help minimize losses, and in some limited cases, actually be quite profitable.

Below is an article that will be helpful for both novice traders, as well as those more seasoned in the marketplace. One thing to keep in mind: since the FX marketplace is a 24-hour global exchange, activity happens around the clock. As such, automated tools that help monitor the market and conditions are essential.

Automated Forex Trading System
by Patricia Hudak

Are you a disciplined individual? According to expert Forex traders, the only ones who succeed in the Forex market are those people who stay disciplined despite their success or failure. Automated Forex trading has changed the way traders make their transactions. If you’re a savvy Forex trader, you can definitely benefit from using these automated systems.

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Training Plus Strategy Equals Forex Trading Success!

August 12th, 2010

Forex trading isn’t the easiest of endeavors to master. This trillion-dollar global marketplace is fast-paced, and moves based on countless numbers of variables. To compound the situation, currency pairs multiply the complexity; economic conditions that affect one country’s currency may have the same, opposite, or no effect at all on the other country’s currency.

Clearly, an understanding of the basics is necessary to keep from throwing your money away. But even here there are many variables: learning basis of currency valuation, understanding the FX marketplace itself, with it’s own terminology and trading mechanics, and then there are the various strategies for placing your bets, such as Forex signals.

I recently came across a very good article that talks about the benefits of combining good fundamentals training, with various indicators and signals. If you find this article helpful, let us know with your comments. If you found it to be too complicated – or too basic – let us know that as well!

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Using Technical Analysis To Trade On The Forex Market

August 11th, 2010

In trading on the Forex market, as with every type of market trading, there are different strategies traders use in order to try and beat the market, or at least predict it’s direction. Some of these strategies have been around for as long as investors have been trying to make profits, while some are new, a direct result of the Internet and the ability to easily look at and manipulate mountains of data online.

Investing strategies can be grouped into two types, or categories: fundamentals, and technical analysis. The basis for fundamentals is almost self-explanatory. Investors look at the real-world data on a company or marketplace, such as economic conditions, demand, profit & loss, supply, etc. The idea behind these strategies is that with enough accurate information, one can get a good sense of where a company or market is going. For example, we know that in economic boom times, people have more discretionary spending money. Therefore, spending on luxury items will increase. As a result, companies that provide these items will see an increase in demand; similarly, areas of interest to tourists will likely experience a boon in revenues.

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Where Can You Learn Forex Trading?

August 8th, 2010

The international financial markets offer plenty of opportunities to those who want to make a lot of money. Forex trading is considered to be one of the most potentially lucrative ventures of all given that the traded sums do not have to be large and that the risk is relatively small. However, you cannot be successful unless you know the tricks of buying and selling foreign currencies. You need to create your trading system. More importantly, you need to be able to analyze the market trends and changes effectively. Thus, it is only logical for you to ask – where can I learn to trade Forex?

You can learn how to trade from some of the good Forex books. You can do the reading at home or in the local library. This is definitely a good starting point if you do not have a clue about the international currency markets and how they work. However, the books cannot give you actual trading knowledge and insight. They are useful just for general information.

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The Forex Trading Gamble

May 28th, 2010

Forex trading is a highly intellectual gamble, like a poker game, except that bluffing and making poker faces doesn’t really come into good use. The market relies on the fluctuating values of different national currencies, and amongst the most popular and commonly partnered are the Dollar, Euro and Yen. This used to be a game for large international banks before it was opened to the public in 1988. Since then, it has been a very lucrative investment but with very great risks.

Various companies with different business interests have realized the income potential of the Forex market. This is primarily the reason why not only banks participate in this lucrative gamble but also other financial and non-bank companies, even remittance companies had found interest in the market. Private individuals mainly rely on investment management firms, exchange brokers and their banks in trading in the Forex market. This is probably the best place to start, if not the only.

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How Big Is The Forex Trading Market?

May 25th, 2010

The Foreign Currency Exchange, or FOREX market is bigger than any market in world, and if you put all of the world’s equity and other markets in one beaker, the meniscus will only reach a quarter of what the Foreign Exchange market is worth. Needless to say, it is the largest financial market on earth with about 3.2 trillion US dollars in daily volume. If this visual is still not enough, the New York Stock Exchange only has an average daily trading volume of about $55 billion. Forex was introduced to the world in 1972 at the Chicago Mercantile Exchange and was only made available to the public in 1988. But international banks still remain as the forerunners of the foreign exchange market, with Deutsche Bank as the top player. Other players are UBS, HSBC, City Group, Coldman Sachs, J.P. Morgan Chase , ABN Amro, Merill Lynch and Morgan Lynch.

Forex trading works by trading one currency to another. It may sound very simple but it is the absolute opposite. The business revolves around and plays with the rise and fall of the value of each nation’s currency. One currency is being traded against another, in postulation that the latter increases in value. It’s a complex gamble, with risks and uncertain probabilities that may make it or break it altogether. Since risk is a major aspect of the game, an unwary private investor may find himself defenseless against this war or pure possibilities.

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Using Forex Robots

May 24th, 2010

I came across this article recently and felt it might be worthwhile for readers here. I’m a big fan of automation in general, but particularly for Forex trading. My feeling is, there is just too much data for any one investor to take into account. The idea behind Forex autopilot systems or robots is that they can be programmed to take into account many more factors affecting the markets for global currency exchange. More to the point, they can be set with pre-determined thresholds for buying or selling currency pairs. Not only does this take the emotional factor out of the game, but insures you don’t miss a profit opportunity.

Anyway, I’ve reprinted the article below, with the author’s permission. I’d be very interested to hear what you think of the article, and of using software to improve your FX trading in general. Please feel free to leave a comment, or talk about your experience using one of these programs or robots.

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Forex Trading Signals

May 17th, 2010

If you are considering getting in on currency trading, you’ll find one of the keys to success is learning to understand and spot Forex trading signals. Investors who master this are consistently profitable. Those that don’t are usually “hit or miss” – usually “miss”.

Trading in the international foreign exchange (Forex) markets is certainly quite lucrative. You can make considerable sums of money by making a very small initial investment. The key to the great profits, however, is the right strategy for buying and selling currencies. You need to have a lot of knowledge and skills to develop such a system. The task is time and effort consuming plus you can never know whether the strategy works until you test it. Thankfully, there is an alternative – you can use Forex trading signals. But what are Forex trading signals exactly?

Simply put, these are trading instructions which are directly provided to you. You can decide whether or not to follow them. As part of each instruction you will get sell or buy points. These have price targets. You will also get the stop-loss levels that you need to be aware of.

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Online Forex Trading Tips

May 4th, 2010

There are considerations regarding online forex trading that absolutely must be taken into consideration before beginning any serious transactions in this market. Although many people make it out to be easy money or a “get rich quick scheme” the truth of the matter is that forex trading does not work out for everyone, and you will not always see the payoff right away. Sometimes it can take weeks, even months to begin seeing the fruits of your labor. It also takes time, energy, and the right amount of money to get started. A lot of people end up bailing out and quitting after a while, simply because they do not know the basics of trading in the foreign exchange market.

In this particular market you will be trading currency pairs, however there is more to it than just that. There are many nuances and intricacies that can really make a difference when it comes to how profitable it will be for you. Most beginners make understandable yet devastating mistakes which end up losing them quite a bit of money that they have invested in it. One of the most common online trading mistakes is letting your emotions make some of the most decisions in place of logic or common sense. This is a huge mistake, simply because emotion can only serve to get in the way of your buying and selling choices.

One of the best forex trading tips is to stick to the facts and what they tell you. Judging by things like small and long term market trends as well as analyzing certain data, you will be able to make sound trading decisions. After you learn how to check your emotions at the door, you will start to become a more successful trader. Many times traders decide to buy automated trading robots, or software programs that will make non-emotional trading decisions for them. While it is true that these so-called “robots” can be of help, you will still need to know a great deal about the forex market in general.

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Opening A Forex Trading Account

April 30th, 2010

Before you go ahead and open a live forex account you will need to know a little about just what forex trading is all about. There are a number of factors that affect the foreign exchange market. The basic premise behind the foreign exchange market is that between any two currency pairs there will be some fluctuation in the exchange rate depending on a variety of external factors. A successful forex trader can read these signals and make buys and sells based on the factors and make money on the exchange.

Because the fluctuations in currencies are usually pennies on the dollar you need to have high volumes to make large profits. The foreign exchange market is the largest in terms of volume of any market that is traded openly. Over three trillion dollars are traded on any given day in the forex markets and is also open longer than any other market. You can trade 24 hours a day from opening on Sunday night (2200 UST) to the close on Friday (2200 UST). This is in stark contrast to the United States stock markets that open at 10 am and close at 4 pm.

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