What To Avoid With Your Automated Forex Trading System

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By , July 30, 2020 1:29 am

Automated Forex trading system is an answer for some traders. Some would say that using this kind of system enabled them to win and earn profits that they would unlikely earn when doing manual trading. Successful users of the Forex trading software would say that not only would they earn money, but they would earn it consistently.

But not everything is a walk in the park. There are traders that would say that getting an automated system and using it for their Forex trade did not help them at all, worse even made them lose profit. Actually, failure in using the automated Forex trading system would depend on the how we take advantage and use this system. Some would commit common mistakes which they can readily avoid.

What are the things that we should be conscious about and at the same time what are the commonly made mistakes when using the automated Forex trading system.

Mistakes would oftentimes start when you are just beginning to choose your Forex trading software. Of course you can check the testimonials of the customers. But do not solely rely on them, it can be fictitious testimonials. So, what you can do is check forums where not only opinions about the software are tackled, but also about the problems encountered and how customers were able to resolve them.

Another mistake is that traders would think that just because that the software they want got god ratings in the market and good customer feedback, it is already perfect. It can still encounter some problems on the way. So make sure that the software you will be choosing have a live support, whether it is over the internet or phone.

It is also a mistake to believe that since you have a trading software, losing is next to impossible. Even the best and most expensive trading programs, can still make mistakes and in the end, make you lose some profits. Winning and earning big profits does not happen in a matter of weeks. In Forex trading, you could have fewer transactions but these transactions could give you more profits. You would have to build solid transactions andtrades that can give you bigger accumulated profits in the long run.

Some would think that winning trades could happen everyday. But that is not the case. Very good deals and trades do not happen everyday. You need patience to be able to earn big profits. Making a lot of trades or overtrading does not mean you would be able to get big profits in the end.

Some traders would rely too much on their trading software and forget getting involved manually on the trade. Being lazy in learning your trade is a big, big mistake. Just because computer programs are working for you, does not give you any excuse not to understand and learn the Forex market.

But listening to all experts and following what they say do not guarantee success altogether. Knowledge is meant to compliment your trading style and system. Just because they say that a particular strategy or system works for them, it could also work for you.

Also, if you have encountered a bad software in past, do not think that all Forex trading programs are scams. It is a mistake to stop looking for ideal trading software. Be patient and keep looking.

It is common for everybody to make mistakes, even if you are using an automated Forex trading system. You just have to make sure that your software compliments your trading style and knowledge.

Why Must You Keep Up to Date about the Best Trading Systems?

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By , July 26, 2020 6:39 pm

If you think that you already know everything about the foreign exchange market and you can go on successfully without any help, you have to think again. It is not everyday that you will be able to make the right decisions. You cannot predict the road that you must follow as you go along with your venture. You can have a successful streak for a time, but eventually, you will lose the magic and you will feel lost in this world where you thought that you are already the master.

Such point will eventually come for traders who don’t want to accept that technology can help them become better. There are some people who rely on their own guts in this matter. There is nothing wrong with that as long as you are performing really well and you are succeeding with all your goals when it comes to your trading schemes. But once you feel like nothing is going the way you planned them to be, this is the best time to rely on to something that can help you get back on track.

People versus the Machines

If you are still not convinced about the benefits that you can gain from using the best trading system, you must not drop the idea altogether. Why don’t you try it first and see what it can do and how it will be able to change your strategies and fate before you judge the system? There are other traders who would only listen to other people when it comes to their decisions on their trading life. They get mentors and advisers to help them at points when they are finding it hard to place their bets on the foreign exchange market. These people study the market to provide you with what you need to know. They look into all aspects that you must be concerned about when you are making your decisions.

You may have the right people and the best in the field. But you cannot expect them to perform at the top of their game all the time. This may be their job, that is why they do everything in order to know the things that can help their clients. But they also have other things to attend to. They have lives outside their work. For this reason alone, they are not capable of looking into the market and all its moves all the time.

This is why certain products that aim to help you on your trading schemes are created. There are systems which were developed to look into the movement of the markets all the time. These can be compared to robots that will not stop delivering what you expect from them as long as you are still using their services.

You will greatly rely on the data that this type of system will be able to provide you with. For this reason, you need to acquire only the best. You should not get tired in looking out for the better product when it comes to the tools that can help you advance with your investment strategies. You don’t want to be outdone by your competitors just because you were too lax about the matter.

You must keep yourself updated with the latest trading systems to know which one is the best. This way, you will be able to invest on a good kind and the one that can lead you to greener pastures on the trading arena.

Weighing Your Options: Why Use Automated Forex Trading

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By , July 23, 2020 10:51 am

Forex trading is a big market, it earns $3 trillion everyday thru its worldwide transactions. A lot of people are taking interest in sharing the huge profits in foreign exchange investment. But when you look behind the big picture, there is about 90 percent of Forex traders who fail to make profits at the end of the day. To reduce this percentage, traders are taking the automated Forex trading system as an option.

Aside from reducing the losing risk that Forex traders are exposed to, traders can also use different mathematical methods to analyze the market. But the most advanced technology that analyzes trading signals is the automated Forex trading software.

Actually, this software is mainly developed to help those who are still new in the trading business. Understanding the Forex trading market and its signals could take a long time, the software intends to help newcomers to learn quickly the trade. But an experienced trader can still use the automated Forex trading software. He can actually boost the benefits that you can get from it. So whether you are a beginner or an expert, you can definitely benefit from it.

If you would like to trade but have more flexible time, automated trading would be a good idea. The automated Forex trading software can analyze trade signals quickly and give you an idea on how to get ahead with the trade. Aside from analyzing the market, an automated Forex trading software also places buy and sell orders to your Forex broker. So the process of analyzing the signals and making actions about its actually happens very quick.

You do not need long time spent in front of your computer or any program to monitor any changes in the trading market. You would just need a few minutes every morning to set it up and time to time monitoring. Using automated and computerized trading system would be beneficial to smaller and more active traders.

But what’s the catch?

When this kind of software is not monitored, or just left on its own to operate, it can even lead to costly mistakes. A common mistake of those who use automated Forex trading software is that they rely too much on the system that they tend to forget that trading would also need money management. So, even if you can program your software to follow your trading strategy, you would still need to oversee it.

Some would say that in the long run, they could save money by having an automated Forex trading system. When you get an automated Forex trading software it would have training materials in form of videos and documents which you can start learning from.
So, if you are a beginner you may not necessarily need to buy any other Forex training documents or undergo other Forex training.

You can make reports, place stops and buy signals and have real-time monitoring easily with the automated trading system. There would also be no need to spend additional money on Forex signal providers. Your automated trading system would do it for you. Making these things easy for you would be able to prepare you to higher chances of profits.

Forex training nor automated Forex trading software is not the only factors in succeeding in the trading field. Actually, Forex trade can change very fast may it be because of political or economic factors. You would also need to have goof attitude and personality, money management skills and a great deal of patience and dedication to succeed.

Its More Than One: Kinds of Forex Robots

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By , July 20, 2020 4:22 am

Forex or the foreign exchange market is one of the biggest trading markets and also among the most volatile. Forex trading can either be done manually or buying and selling through a broker or a financial brokerage firm. It can also be done by using the automated process like using a software or an expert advisor also known as a Forex robot.

Generally speaking, Forex trading is dealing with the international market. Forex market deals with all the currency trading the world. Because of its high level of unpredictability, some would refer the Forex market like gambling. Currency values change very fast, that you would need good analysis and at the same time, luck, to be able to land a good transaction.

There are about $3 trillion worth of turnovers every year in the Forex market. More and more traders, newcomers and people are getting interested in sharing the pie. But it is not as simple as that. Tools are necessary to be able to succeed in Forex trade. Forex trading is not also for those who are constantly indecisive and fearful at heart. It takes a lot of decisiveness and courage for you to be able to put your account and investment at risk so that you would be able to gain profit.

This characteristic of the Forex market made some programmers and trading experts to come up with a support system that would enable those who are relatively new in the business to be able to cope with the competition. Thus, the automated Forex trading systems and Forex robots called the expert advisor or EA.

The are two types of Forex trading indicators. These indicators would help you determine if the price is going up or getting down. These indicators would also help you in deciding whether you are entering or exiting a transaction. These indicators are also how kinds of Forex trading robots are called.

• Velocity/Momentum Robots

These robots analyze the price changes, fluctuations and other movement. Upon analyzing the movement of the price, patterns are defined and organized. These patterns would be grouped together and would be used to understand or as a reference when entering a deal or trade.

The rise and fall of the prices would be displayed and therefore would help in determining a pattern in the movement of the price. This would help the trader understand the factors that trigger price movement and at the same time identify opportunities. These trading robots would help you get oriented with the weak and strong points of different markets.

• Continuation trading robots

These kind of robots deal with averages. This kind of robot is ideal for Forex markets that show trends. This robot would determine if there are trends the market by monitoring the up and down movement of the currency trading.

Determining and understanding trade by averages would provide flexibility. At the same time, this would allow you to trade outside the technical factors of trading.

These two kinds of robots, operating based on the kinds of trading indicators, show significant impact on improving Forex trading transactions. Although, not all Forex robots can be entirely relied on to finish deals for you. So, you would have to be careful when buying your own robot. At the same time, it is important to remember that Forex robots are meant to support the trader, not to replace them.

MM and ECN: Making A Killing with the Right Forex Broker

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By , July 16, 2020 9:18 pm

If you have already figured out your forex trading strategy by now, you are not in the clear yet. Now comes the part where you get to choose the type of brokerage firm that will fit in seamlessly with your plan.

A forex broker in essence, is the one that will keep an eye on the markets for you, and acts up as your partner in setting up your orders.

There are two major kinds of forex brokerage firms. Knowing their differences is important on your way to dominating the market. Not understanding the advantages of each can set you back a lot of time and/or money.

MM: Market Makers
What is important to understand about Market Makers are the fact that they are the ones who set the asking price and the bid price. As your trading partner in buying or selling, you grant them authority in handling your money.

An MM institution acts as an exclusive liquidity provider, giving services that is otherwise not found on any other brokerage set-ups. In simple terms, they sell for you as well as buy for you. Think of them as a place where they do all the work for you.

Understanding how MM makes a profit is simple. When you finally decided to buy, you buy from them. They in turn will go to other brokers and buy at slightly better rates to sell to you. The difference in rates is their profit. Think of it as the exchange from the work they have done you would have otherwise done yourself.

The advantages of MM:
1. They have set spreads, freeing you from the anxiety of the fluctuations in the market.
2. Since they work for you as a partner, your orders are assured.
3. They are usually user-friendly, easy to access and understand. Software and platforms are easy to get.

ECN: Electronic Communication Networks
Electronic Communication Networks on the other hand, place your order in a bid and lists all the asking prices for it. The asking prices come from many market participants, if their sell order matches your order.

If there is no match, then your order will not push through. ECNs are not obliged to fill your orders; rather, it is up to you if you will agree on the other ways’ bid/price.

The advantages of ECN:
1. Prices are more aggressive, so scalping is ideal here.
2. You can also take the role of an MM and mediate between trades, making a profit for yourself in the differences of rates.
3. Because there are many sources, bid/ask prices are better and more diverse than MM prices.

Choosing which one to put your focus on depends entirely on the kind of strategy you have, whether you plan to trade conservatively or aggressively. Different brokers fulfill different demands, and the services they give set them apart. These two are just the major kinds, and now you can seek out that broker that leans on the type you consider will best work out for you.

The advantages of the two help a lot of diverse-thinking forex traders apply their strategies. Most of them maintain a strong account on both in order to maximize the potentials they have. Learning to play in both fields is a step closer into bringing about a successful career in forex trading.

Textbook Mistakes in Forex Trading

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By , July 13, 2020 1:52 pm

Novice and students of forex trading often overlook the obvious: many before them have made fatal mistakes. Making the same wrong decisions all over again just does not make sense. What a serious forex trader should do is to learn from them and up their game.

Relearning these assumptions and wrong steps will increase one’s chances of succeeding in the business. If you are inexperienced, then the experience of others can only enrich you. Always remember no to make these mistakes:

Wrong timing of Stops
While stops are certainly essential in forex trading, the wrong timing can topple your whole strategy. Sure, you might be thinking of putting a cork in your money leak, but the key to doing that is the right timing: the trade should still be leaning in your favor. Proper money management should be at play here. Risk should be at the minimum before placing a trade. Calculate and research your options.

Underestimating the risks of leverages
Okay, you might be thinking of instant profit if you use a 300:1 leverage on a trade. However, are you sure profit will come in? A lot of people think of leverages as free poker chips where in fact, the risks are higher. It is all about making sure you have a good solid hand. Even then, experienced traders are always careful only risk 2-3% of their investment balance on a trade. Asses your risks and gains, do not be dazzled with the money and the excitement.

Relying on signals and indicators too much
It is as if you are just a sheep following a trend. Signals and indicators are just that: assistants and cues that help you make a decision. Remember that your strategy and assets are unique to you, so technical indicators do not always apply to you. You still need to work. There is no magical formula or machine that can do the work for you.

Day trading
Some people might think that day trading holds no or fewer risks, which may be true to some. However, there is a reason why long term trading still holds: it gives you more time to wait out a position that will be in your favor, yielding more profits. Day trading can work, but only to a select few.

Getting sucked in by “miracle” software
There are dozens of so-called powerful platforms and software that tells you can beat the system and reap huge profits. Some of them can help but a lot of them are duds. The main thing to remember is that there is no sole software out there that is foolproof. It’s okay to get indicators and advice from a few, but it all rests in your acumen. Before putting your money where your program’s mouth is, you better test it thoroughly.

The same thing goes for systems and strategy on paper. Even if you have back tested it, would the conditions you have used to test that be the same conditions that will happen in the near future?

Getting overwhelmed with emotions
Forex trading requires objectivity, cool thinking and the ability to make sound decisions. Be too afraid to risk, and you will not profit at all. Be too reckless and you will lose your shirt in no time. Here is a smart thing to do: read up on forex trading psychology. Watch yourself and do not work obsessively. Have a life.

There is a reason why forex trading is so popular yet only a select few have built their careers over it. A lot of beginners have failed, but where they have fallen, you should pick up and do better.

Forex Robot Myths

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By , July 10, 2020 7:06 am

Forex market is among the most unpredictable and frequently changing market. Although, this kind of trade is high risk, there are still a lot of people who are venturing into this kind of investment. There are a lot of experts who give advice to every newcomer in Forex trading, it can be about using Forex robots, automated trading, or changing trading strategy. How can we separate the right from the myths?

Let’s start with Forex robots. What are the common myths about Forex robots and how can they be corrected?

• Clever and complicated Forex robots offer the best service

Unfortunately, this is not true. The most simple systems are the ones that may work best. The good thing about simple systems is that they use just simple algorithms and requires fewer elements.

Aside from that, vendors would claim that their programs were designed by brilliant people. Some would claim that their programs would be created by people in NASA or top programmers. What does these people know about trading, anyway?

• Trading can be improved by scientific and predictive systems

Yes, Forex trading and automated trading systems use mathematical calculations to understand and analyze trading signals and their trends. But, are the mathematical calculations some programs claim are really effective. Some vendors would claim that they use Fibonacci and it could relatively improve trading systems.

These formulas could help you analyze the market, but it could never be used to PREDICT the outcome of a trade. If you can, then there would be numerous people who have gone richer because they won in the Forex market.

• Forex robots can eliminate loss

There are Forex robots and automated system claiming to have zero losses. Again, if this would be true then a lot of users would already be walking millionaires. But that is not the case. There are about 95 percent of traders who lose their money everyday. So, the remaining 5%are just the successful ones, out of those small percentage, how many are using Forex robots? It is perfectly normal for everybody to encounter a losing period.

• You can leave your Forex robots to operate on their own

Forex robots claim that you can just turn on your computer and system and let it operate on its own. It can finish deals for you, without you even participating in the process. Any trading system has to be executed in a way where it can be monitored and still follow the trader’s trading strategy.

The reality is that you can let you equipment continue on trading, but it does not mean that the more trades that you have the more gains you will get. It still depends on how you would make your robot work for what you want and you strategy, not the other way around.

• Success in demo accounts is the same for actual trade

Not just because you have proven the effectiveness of the program in a demo account, it could show the same results in the real account. Everything could be risky. This is why it is important to check customer reactions and comments about the products. Most Forex robots website and forum would offer discussions about what are the common problems encountered in real accounts and hot it was resolved.

Trading Plans: A Simple Guide

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By , July 7, 2020 12:23 am

If you talk to successful stock traders, you’ll find one thing in common wigth all of them. All of them have good, workable trading plans that they’re comfortable with. When you’re planning to go into the stock market, you could do worse by emulating these success stories and having a plan. Let’s be clear though, trading plans are more than just rules for trading, when to buy and sell all of those stocks on the open market. Those rules are actually trading strategies and are a subset of a trading plan. Let me run you through to what’s essentially a simple trading plan.

Every trading plan starts with a goal. Some trading plans have nebulous goals like: “I want to be rich before retirement,” but you quickly find out that plans with such far-reaching goals usually fail. Realistic, measurable goals are what you find in good plans. What do I mean by realistic and measurable? First, the goal is reachable and possible for the trader and also gives a definite gauge for a person’s level of success. Experienced traders usually define this goals by setting a profit/loss margin for a particular span of time. Trust me, you’ll know if you’re a success if you have a definite profit target at the end of the week. Even if you don’t reach it, you can see how much you have to go and you’ll strive for it.

Another part of a trading plan is having a definite market or field to target. This actually gets even more specific with particular stocks chosen for how they will help a trader achieve a goal. A good trader chooses a field that he’s interested in or has easy access to information about. This is because the stock market is a fluid thing and the only way to make sure you don’t get any nasty surprises is to always have your ear to the ground for any developments or trends that may affect the price of company stocks. Being interested in a field also translates well into this and most traders have a preferred field or commodity that they focus on. Information is money in the field of stocks and when you’re interested, you’re more attentive to something.

Finally, entry and exit strategies into a market are formulated to reflect a trader’s personality. A daring trader can wish to make his margins of acceptable higher or a more conservative trader would lower his negative sell price a bit higher, so as to avoid a larger loss. All of this is mostly done to assist a trader to accept a trading plan’s instructions for them. Going against personal instinct is a hard thing, that’s why traders tailor-make their strategies to match their temperament. Any disagreement between a trader’s “feelings” and the trading strategy selected can cause a moment of indecision. With the lightning speed of the rise and fall of stocks on the market, that moment may be the difference between thousand dollars of profit or a thousand dollars of loss. par

There you go, a simple guide to how trading plans work and how to make one. If you’re interested into going into the stock market, you better try your best to make a good one and to follow it well. A good plan always succeeds after all.

Plan For Success: A Trading Plan Primer

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By , July 3, 2020 5:05 pm

Let me tell you what’s essentialy an open secret for stock traders: a trading plan is pretty much the only way to succeed in the stock market. Actually, it should be pretty obvious: well-made plans have always guaranteed success for anyone who’s set out to do something, from a lowly carpenter to a well-respected general. What I’m going to be telling you about now is how to set-up your own trading plan so you can walk that path to profit and success.

Let’s start with what a trading plan is not: a trading plan is not some vague instructions on a piece of paper, gathered advice from well-worn trading books, no. That’s what you call a roadmap to disaster. The stock market is a treacherous place and going into it with only vague instructions will have you end up bankrupt faster than a blink of an eye. Trading plans, real trading plans, are seriously thought out pieces of self-examination and complete research into a market or a field. They are like mirrors of a trader’s personality, guiding him to do actions that would maximize profit and minimize loss.

So, how are these masterpieces created? First of all, good trading plans are made from the bottom up. The foundation for these plans are made when a trader takes stock of himself: what his personality is, what his interests are and what he is aiming for. Goals often define a person and plans are no different. When you’re starting to make a trading plan, you should ask yourself this question: what exactly am I hoping to gain with this plan? Financial security’s a good answer but it needs something a bit more specific. Setting a weekly profit and loss margin for yourself would be a good start, then slowly working yourself up to monthly, then yearly. Creating goals in this manner give you something to aim for and define a sense of progress for yourself. Of course, you shouldn’t aim too high or you’ll end up getting disappointed.

Next thing on the agenda is what market and stocks you’ll be trading in. There’s an old saw that goes that you should get a job you enjoy so it won’t feel like work and that holds true here, too: choosing a field that you have prior knowledge about or interest in can help you keep focused on the market’s progression. That way you won’t suddenly find yourself caught by some new trend and end up losing money. Once you’ve chosen the market, that’s when good-old research comes in. Picking stocks by performance and your goals should be easy, although you sometimes have to dig a bit deep to find any underlying patterns to their progression.

Finally, you should set-up your trading strategies. Trading strategies pretty much hinge on your personality. If you’re a bit of worrier, then you’ll probably be aiming for conservative strategies, the ones that aim for slow but sure profits over the long term. But if you’re the daredevil-type who wanst that big payout immediately, buying and selling volatile stock would probably be more fitting for your personality. Remember to try and make your trading plan’s strategies work with your personality, that way it would be easier to follow. Risk-taking trades would probably be too much mentally for a conservative trader and slow, boring ones would put a risk-taker to sleep, with the same end result of you suddenly becoming careless and losing a lot of money.

Well, that’s pretty much the basics of trading plans. If you want to know more, there are several good books and resources available on the market and the Internet.