The modern foreign exchange market allows continuous trading on a global scale 24 hours a day excluding weekends, so 24 x 5. Technology in recent years has allowed in the individual trader the ability to trade in real time, which just wasn’t possible previously.
The fx trader now has a lot more opportunity for profit with currencies constantly moving and often major turning points occur in seconds rather than minutes or hours. The fx market now is used as much for day trading and taking many intra day profits as it is for longer term trades, hedging positions and reducing currency exposure. Accompanying this greater opportunity for profit is additional complexity. Not only are major fundamental events affecting the forex market a lot quicker with 24 hour trans global communication but also there is access to a lot more technical information for the trader to try and catalogue and digest. To stand any chance of being able to keep up and try and profit from forex trading, traders have turned to automated trading as an essential tool to help them out.
The popularity of forex trading and the reason it attracts so many new people day in and day out is because of the profit potential of investing or trading in a market that is so liquid and fast paced. The actual sums of money that are traded daily are in the trillions of dollars and is growing at around 150-300 billion U.S dollars each year.
It understandable that a person who is new to forex trading and the forex market but interested in starting to trade would want to do so quickly in order to start generating profits as soon as possible. However as I have already mentioned, forex trading is a very involved and complicated activity, well it is if you are going to be successful. The professional traders who work for the big investment banks and brokerages have all had to learn the skills necessary to be a successful trader by studying hard and sitting exams to certify their competence. For an individual this task is very daunting as most people do not have the money or
indeed the time needed to study in order to become a competent trader initially and if shortcuts are taken and a new trader starts trading prematurely then they are exposing themselves to an undue risk of losing their trading capital.
However with an automatic trading system people interested in forex are no longer forced to spend countless hours of study and trial and error learning a forex system, they just have to learn the logistics of the trading platform that they trade with and details of the software that they will use to carry out the trading decisions on their behalf. What has revolutionized the modern day forex traders life is the advent of forex robots, otherwise known as expert advisors (EA’s) which are software programs that are purchased and installed on the persons trading platform. These forex robots are programmed to monitor the forex market continuously and execute trades when the opportunity arises.
So now any new trader has access to an automated trading system where they can switch their computer on and leave it running whilst the software monitors the forex market and trades for you. The automatic trading system integrates fully with the trading platform and can be set to run completely on autopilot without any human action required or be adjusted by the user to a specific trading pattern and style using various settings options, so more of a case of semi autopilot. This automatic system also helps the trader analyse the vast amount of information available daily and provides data on trading performance both current and historic. Most automatic systems have a money management feature built into them to limit potential losses.
In today’s forex market there has never been a better time for newcomers to start trading due to the constantly fluid nature of forex pricing which results in tremendous profit opportunities combined with the requirement to only learn the information needed to set up and optimize an automatic forex trading system.