Automated Forex Trading

Automated Forex trading appears to be the next big trend in currency exchange trading. Automated Forex system trading is just what it sounds like — a system for making exchanges on the Forex market without your constant supervision. Automated Forex systems work in many different ways, from e-mail commands sent to your supporting broker to trading platforms that allow you to automate activity with the click of a mouse. Automated Trading is simply a way for a trader to securely trade your account for you.

The benefits of using automated Forex trading are many — the most important are personaliztion and time saving. What is the fun of making money through currency exchange if you’re glued to your computer all day, using a system or application you don’t like?

Not only do automation systems offer you the ability to set up your own automated trade parameters, many of them give you several application or web based trading options. Some automated systems, like HyperOrder, offer you several well known trading platforms (TradeStation, MetaStock,etc) as well as the ability to collect trade orders from your email and send them directly to your broker. Set up your customized automation plan exactly how you want it. If you want further personalization, there are even so called “third party” automation systems that allow you to develop your own automated Forex trading system and apply it to any trading utility or website you choose. That makes the automated experience completely personal — not only can you personalize your automated trading system, but you can choose the application you use to track your system. If you have an affinity for a particular Forex broker or utility — you can use the GoForex third party automation system to trade on your own terms. Check it out at Go Forex.

Regardless of which automated Forex system you choose, you’ll be saving yourself time. We’ve all known day traders or stock hounds who spent most of the workday tied to the monitor, analyzing trends and making trades. Since Forex never closes, Forex traders often get caught up in trading all night, soaking up valuable time. Using automated Forex trading, you can spend less time with your Forex account, and more time enjoying family and friends.

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However, automated trading of any kind can be dangerous. If you’re a greedy trader, you could set up automated trades that are high-profit and therefore often high-risk. These trades will be executed by the application until you personally change the system — take just a day or two off from closely monitoring your account, and you could miss a major trend that would have led to a better, or just safer, investment.

You should also be wary of certain automated Forex trading systems that offer “guarantees”. The automated Forex market reminds me of the huge market for “gambling systems” instruction manuals and eBooks. There are more automated Forex systems for sale than you can shake a Japanese candlestick at (sorry, just a little Forex joke). Many of these systems advertise returns for all their customers, “guaranteeing” success. However, if there were a system that could guarantee a positive return, every broker and investor in the world would be using it. The fact is, there is no way to guarantee profit in the Forex market. These guarantees target the opposite of the “greedy” crowd — people who can’t stomach the idea of even the slightest risk will jump at the chance to earn a guaranteed profit.

Is Automated Forex System Right For You?

So how do you know if automated Forex trading is for you? Because of the risk involved, some Forex traders are a better match for the automated lifestyle than others. Here are five signs that automated Forex systems are for you.

  1. You have risk tolerance. Automated Trading has its risks, too, so don’t bet the milk money, or Lactaid money for those who have a high risk tolerance but low lactose intolerance.
  2. You don’t want to spend all day watching the market, and all night researching. Automated Forex trading is a lot like letting someone else monitor the market for you — can you handle the idea of a virtual “third party” making trades from your account?. Trading any financial resource will require a lot of study and research time on your part, and depending on how you trade you may need to do ever more “bookwork”. Automated Trading can be trusted to do this “researching” for you, to some degree. The better automated Forex trading systems are based on better research and are more customer friendly. However, are you comfortable with the idea of doing less research in an attempt to earn more money?
  3. You’ll be trading at least $5,000. Most of the automated Forex trading systems require fairly frequent trading to work properly. If you don’t have at least $5,000 to dump into the market, you may not have enough capital to participate in all that the automated system has to offer.
  4. You’re looking for better than average returns on little work. If you set up your automated system correctly, this system will have the ability to earn high returns without the massive amount of time and effort that most traders are forced to put in to make proper trades.
  5. You want some insurance against poor trading. The fact is that some of you Forex traders just enjoy the act of trading, the excitement of the currency exchange market, and the potential high returns. If you choose to use an automated trading system to trade just a portion of your total account, you will have a “hedge” against failure. The portion of your investment controlled by an automated system improves the odds of success for your total account return.

If you’re going to use an automated Forex trading system, be sure you understand the risks along with the benefits. To avoid the standard pratfalls of automated trading, you should keep an eye on your account as often as is possible, avoid “greedy” trading, and hedge your investment. If properly designed and implemented, automated trading systems can be just as accurate as manual trading, with less effort and more time to enjoy yourself. Away from the computer.