With more and more people getting into forex trading as a way of trying to increase their income, it seems everybody is looking for a short cut to make it easier. Sure trading is risky, but there are plenty of new traders willing to take their chances because the potential profits are so great.
Naturally, one of the most important requirements if you want to trade profitably is having a proven trading system to follow. Your system will have parameters and rules that tell you when you should get into, and out of, each trade. Since there are hundreds of forex trading systems around, it's critical that you do some research and digging before you choose the one for you.
But even if you do that research and find what you think is the perfect trading system, it's certain that you'll lose money in the market on some trades. There's simply no guarantee any trade or series of trades will make a profit, regardless of what system you use - that's just the way it is. But something that's often held up as a way of increasing your chances of success is what's called an Automated Forex System.
An Automated Forex System comes with an automated trading robot that makes currency trades for you so you don't have to sit there and watch the market. In other words, the robot works on autopilot, buying and selling currencies, based on pre-determined formula programmed into the system.
Sounds like a good idea on the surface. In theory, it means that all you have to do is check on your robot trader occasionally to make sure that it's working, and the system's parameters are calibrated correctly. Over time, your trading account balance will grow on it's own, without any input or decisions from you. As I said, it SOUNDS like a good idea... in theory.
OK, now it's time for a reality check. Why would somebody sell a piece of software to anybody if it really made forex trading that easy? They would keep it to themselves and profit from the market themselves (at least most sane people would). Give me a break...
The bottom line is this. DON'T fall for the forex trading robot fairy tale. While there are no doubt institutions, hedge funds and big private traders with automated trading systems that make them money over a long period of time, they are not the same as the commercially available 'forex robots' you see advertised for a hundred or two hundred bucks.
The only real way to make decent money trading forex is to learn from a trader who knows how to teach you. Then get a free demo account from a broker and practice using that system until you can confidently trade the market. There IS no shortcut shorter than that. Find a good trader who's willing to share what he knows, follow that, and you might just succeed as a trader.
Naturally, one of the most important requirements if you want to trade profitably is having a proven trading system to follow. Your system will have parameters and rules that tell you when you should get into, and out of, each trade. Since there are hundreds of forex trading systems around, it's critical that you do some research and digging before you choose the one for you.
But even if you do that research and find what you think is the perfect trading system, it's certain that you'll lose money in the market on some trades. There's simply no guarantee any trade or series of trades will make a profit, regardless of what system you use - that's just the way it is. But something that's often held up as a way of increasing your chances of success is what's called an Automated Forex System.
An Automated Forex System comes with an automated trading robot that makes currency trades for you so you don't have to sit there and watch the market. In other words, the robot works on autopilot, buying and selling currencies, based on pre-determined formula programmed into the system.
Sounds like a good idea on the surface. In theory, it means that all you have to do is check on your robot trader occasionally to make sure that it's working, and the system's parameters are calibrated correctly. Over time, your trading account balance will grow on it's own, without any input or decisions from you. As I said, it SOUNDS like a good idea... in theory.
OK, now it's time for a reality check. Why would somebody sell a piece of software to anybody if it really made forex trading that easy? They would keep it to themselves and profit from the market themselves (at least most sane people would). Give me a break...
The bottom line is this. DON'T fall for the forex trading robot fairy tale. While there are no doubt institutions, hedge funds and big private traders with automated trading systems that make them money over a long period of time, they are not the same as the commercially available 'forex robots' you see advertised for a hundred or two hundred bucks.
The only real way to make decent money trading forex is to learn from a trader who knows how to teach you. Then get a free demo account from a broker and practice using that system until you can confidently trade the market. There IS no shortcut shorter than that. Find a good trader who's willing to share what he knows, follow that, and you might just succeed as a trader.
About the Author:
This risk management article looks at how you can become professional currency traders while minimizing the risk and maximizing your profits. Check it out.
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