What exactly is automated Forex trading?
Automated Forex trading basically means you are using software that was designed to think for you by watching the Forex markets so it can enter and exit trades for you.
If for example you are like me and you do not have the luxury or do not want to sit at home all day in front of a computer screen trying to figure out when to buy and when to sell, or if you are completely new to Forex trading, the software will enter and exit trades for you!
This might still sound like a complicated task, but in reality you only need to install the software and let it do all the work for you.
What are the advantages in using automated software?
There are quite a few reasons and benefits to using an automated system:
Trading 24 hours a day without you having to sit in front of the screen watching the markets. As exciting as trading Forex can be, you surely don't want to spend 8+ hours in front of a computer screen. Automated Forex trading does all the donkey work for you.
You do not need any prior Forex trading experience The software will do it all for you.
Runs independently on your PC/Server depending on the software package you buy.
It allows you to make money while you are at work, watching TV, and even overnight while you are asleep! Since this is a software program and the Forex markets never sleep, they both work very well together at any time of the day or night.
Learning to trade Forex is something everyone can do, but it does take a lot of time, practice and patience. I don't know about you, but I do not have lots of free time to start with, never mind patience and practice! Automated Forex trading allows you to learn the ropes when you have the time to sit and watch it entering and exiting trades until you feel confident enough to start trading yourself, or, just stick to using the software...
An automated system is unaffected by the trader's psychology. If you have ever tried trading Forex yourself you would know how much more difficult it is trading real money oppose to a demo account. Automated Forex trading removes these emotions completely and executes profitable trades without you having to do or stress about anything.
You can trade multiple systems at the same time. There are many different indicators and timeframes an automated Forex trading system can be programmed to use and not all of them use the same strategy. By using more than one system you can reduce or diversify your risk and boost your chances of making decent profits.
Automated systems take the guess work out of the equation. Knowing when to buy, hold, and when to sell is not always as easy as it may sound. Switching to or starting with an automated Forex trading system leaves you free to observe and learn while the software does all the thinking for you.
Today, many people are using automated Forex trading and many have seen very good results. However, I must point out to you that not all systems are created equal. Some have undergone rigorous back tests as well as live trading to ensure they do actually work! Below I have some links to 3 automated Forex trading systems that have been proven to work with great results...
In most cases people who are looking to purchase or try automated Forex trading have little knowledge about trading Forex and that is where using an automated system will help you get started right away with much less risk than trying to figure it out yourself.
In fact, you could expect to see some results the same day you install and run the software! Even people who have never traded currency before can make a profit with Forex.
Okay, so where do I start and which automated Forex system do I use?
There are many software packages out there but do take care in choosing one! As I have mentioned earlier, not all automated Forex trading systems use the same indicators or timeframes and not all of them have been comprehensively tested.
Interested in knowing which automated Forex systems really do work? Have a look at the link at the bottom of this article!
At the end of the day you want to be working smarter, not harder. Having automated software in your arsenal is definitely a good place to start learning to trade the Forex market.
A word of advice: Trying to learn how to trade Forex by yourself can be done. But, sometimes this may take years of understanding, trial and error, and a lot of money if you keep making mistakes. Using automated trading right from the start will teach you how and when to make profitable trades, nearly every single time.