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Trade forex online with automated software

Dated: 2016-09-10

Recent years have seen a large increase in the number of people taking up forex investing. Advances in technology mean that today, anyone with a computer and internet access can trade forex ‘alongside’ the professionals.

automated software

A lot of people now trading currencies previously had no currency trading experience at all, but came from other financial markets in search of higher returns. Other forex investors had no trading background at all.

Learning how to trade forex online can be a daunting task for the complete novice. While there is a large amount of information, books, tutorials and video available, it does take a lot of practice to fine tune and develop a unique trading strategy.

Nothing beats practice, and numerous brokerage firms offer demo accounts for free, online. These online demo forex accounts allow investors to use real software, with real prices and under real market conditions to practice trading without risking any money. Even with this much on offer, the prospect of making real trades alone, and risking real money till scares a lot of people.

Some companies therefore have tried to bridge this gap by offering automated forex trading software. This software is designed to assist forex traders identify and make profitable trades. There are a lot of different software packages for forex traders available on the market. As with any purchase, it is important to research and be well informed before making any purchases.

The first thing to realise is that trading strategy is perfect. Strategies that will make money for one investor in specific market conditions will lose money for another. Similarly, no package is perfect. At their heart, the software packages merely automate particularly strategies, so are similarly vulnerable. At best, any automated trading software should be used as an additional tool and guide by the forex trader. Anyone trusting a piece of software to trade on their behalf should be aware of these limitations.

It is always recommended to try out a demo version of any trading software. This is a good way of determining whether the way the software works, or indeed the recommendations for trades that it makes are suitable for your investment strategy.

A lot of traders do note successes using automated trading software. Online forums and discussion boards are littered with reviews of the various software packages on the market. They are written by people who have bought, and tried the software, and so it is useful to consider them ahead of any purchase. Packages will have both positive and negative reviews, and so it is important to balance both sets of reviews in guiding your choice.

Once you have purchased a package, it is just as useful to trial run it, and have the package just recommend trades instead of actually executing those trades on your behalf. Keeping a log of the trades recommended by the package, and any profit or loss will also be key to an objective evaluation in the future. If the package is consistently losing money, ditch it immediately, and start shopping for an alternative.

What all the software out there won’t replicate, is the trader’s instinct. This will only come with practice and experience. You will find therefore that the best, and most profitable traders do not rely on automated software, but use it as a guide, and learning aid, ultimately making their own decisions on trades.