Automated Trading in the Currency Market

Jul 31

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Original article by Forex Supersonic

Automated trading is everywhere in the foreign exchange market nowadays. From millionaire traders who have got their systems programmed into robots for their own use alone, to the newb who expects to get loaded from an inexpensive expert counsellor without even knowing how to set it up, everybody is getting automated. Of course, automation is increasing in a massive number of other areas too. But if you look at stock market trading, as an example, there’s not virtually so much use of robots for trading as in the currency market. Why is this? We can only think it is because stock trading methods are not so straightforward to programme into software. Just buy an automated trading robot, plug it in and check back next year to pick up the profits, right? Sadly, making money is never that straightforward, even with the best robot. Installing it can take time; selecting the settings is a job that requires some understanding of the forex market and how to manage your risk; and even the best robot will sometimes make losses as well as profits.

Nevertheless, it certainly does mean the average person desiring to get into hopeful trading has more options in forex than in stocks or commodity trading. You can start right out testing your robot in a demo account. Yes, we probably did say a demo account. It’s essential not to hop this step. They might have made a tiny blunder in setting up the software which could result in 2x as much risk as they intended, for example. Or the robot may not be the one for them..

Money Management for Profit in Currency Trading

Jul 28

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Original article by Forex Legend

What will we need from a Forex trading tutorial and other forex courses? Just like with the drivers, knowing how to operate the system is only a tiny part of our coaching. Risk management is what’s most liable to prevent us from finishing up in the ditch. Let us take an example. Around half of its trades are winners.

But if you start out thinking you’ve a fifty percent possibility of success so you can risk 50% of your funds on each trade, you would be making an enormous mistake. Fifty percent winners does not necessarily imply that each loss will be followed by a win and vice versa. There could be 2, three, 4, maybe now and then even 10 losses in a row. Or you may have five losses followed by a win followed by another 5 losses. Later on of course, it might even up and you would have a run where there were more wins; but if you were placing fifty percent or even twenty percent of your account balance on each trade, you would be wiped out long before the wins started coming in. At 10% the trader would doubtless still be wiped out eventually. You can check this out against back tests, but always double the worst situation that you see because it is just about actually not the worst that might occur.

Money management is something that must be learned by any newb trader. You can see from this draft why it’s critical to take a currency trading tutorial of some type before starting trading.