| Many forex traders (particularly novice traders) make | | | | proprietary or "white label" software for trading the |
| the mistake of trying to beat the market by overly | | | | forex markets. This software is is usually either |
| relying on Automatic Forex Trading Systems or | | | | web-based (i.e. a browser-based plug-in) or a simple |
| "Forex Robots". | | | | application that can be installed on the user's PC. The |
| Well, guess what? You can't beat the system. | | | | functionality you get includes some charting and |
| Particularly if you don't know what you're doing, trading | | | | technical analysis, a range of configurable tools you |
| a market you don't understand and relying on an | | | | can use to determine buy and sell signals (e.g. |
| automated computer program to make your decisions | | | | weighted moving averages and support/resistance |
| for you. | | | | level indicators), and an order entry function, which |
| There is a good reason why professionals who have | | | | allows you to place your orders into the market. The |
| been trading the forex markets for a long time | | | | orders can be conditional on certain price/timing |
| generally make money and novice traders generally | | | | considerations. |
| lose money. It's because the professionals know what | | | | These applications are very useful and are designed |
| they are doing and use systems (automated or | | | | to help you trade, not to lose you money (although if |
| otherwise) that work, whereas novice traders have | | | | you are a poor trader that will happen anyway!) |
| not yet discovered what works for them and what | | | | Commercially available packages that you actually pay |
| doesn't. | | | | for give you the same functionality but in more depth |
| So what exactly are automatic forex trading systems | | | | and with more configuration options, so you have more |
| and how do they work? Can they actually make you | | | | opportunity to "set and forget". Some of these are |
| any money or are they just a scam? | | | | good, some are complete rubbish, so tread carefully |
| There are all kinds of forex trading systems on the | | | | and read objective reviews before you go out and |
| market, some of which are more effective than | | | | buy one. |
| others. Ranging from the most simple web-based | | | | Regardless of whether you go with your broker's |
| plug-ins or spreadsheet-based toolkits aimed at the | | | | sysytem or a bought package, most of these |
| individual trader to highly complex applications requiring | | | | systems allow back-testing using historical data, so you |
| massive amounts of computing power developed for | | | | can see under what circumstances your trading |
| the trading desks of international banks, there is | | | | strategies would have worked in the past before |
| definitely something for everyone. | | | | actually embarking on trading with real money. |
| If you set up an forex trading account with a bank or | | | | With all of these Automatic Forex Trading Systems |
| broker for the first time, you are probably going to be | | | | around, it is actually very easy to trade the markets. |
| given access to a system at the lower end of the | | | | But our advice is always to make sure you never |
| scale. Most brokers provide customers with their own | | | | trade more than you can afford to lose. Happy trading! |