There are all kinds of tools and pieces of software that can help anyone wanting to begin trading in foreign currency or increase the amount of trading that they are doing, but each one should be carefully assessed in advance and the trial versions should be used wherever possible to test out a new program or system before using it for real.
These robots complete trades on behalf of traders and can be fully automatic, pre-programmed with signal based triggers or algorithms where the robot highlights specific signals on the basis of which traders can make manual trades.
There are a huge variety of robots available and any trader considering using one should investigate all the pros and cons of the robots out there, as different robots suit different styles of trading and will only be effective if used correctly. The advantage of robots is that they take the emotional response out of a traders choices and focus only on a predetermined set of criteria to make trading decisions.
The disadvantage is that they will only respond to a certain preset criteria and so traders need a level of experience to set these criteria correctly and inexperienced traders can be open to scams. It is vital that a trader considering a new robot uses the trial option to determine whether a specific robot will work for them.
Forex signal generating software
This kind of program follows the markets and provides signals about when to enter and exit a trade, helping traders to spot potential opportunities for profit. It can also help determine when to get out of a falling currency trade in order to minimise losses.
Forex trading platforms
This is a kind of software that allows traders to make their chosen trades via an online broker. They work over the internet and so a reliable connection is vital and a windows platform is generally required.
Automated or algorithmic trading software
This kind of trading platform can save time if it is set up correctly, however as it makes trades based on an algorithm or a plan that is predetermined they are only as good as that algorithm or plan. They do allow a foreign exchange trader to remove the emotional response from their trading decisions which makes it easier to stick to the limits that are set in advance and not act on ‘gut’ instinct.
Forex charting software
This kind of software allows traders to see the historical trends and patterns in a currency and produce mathematical models from these trends which allows them to use indicators such as RSI’s. These programs can also go into further detail and make predictions and projections based on the historical data.
Trading software can be useful in giving traders an indication on when to make trades but they are generally only as good as the person using them. Therefore a proper trial with the test version of a piece of software is vital to find out if it suits an individual traders style of working
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