In this article, you will learn more about online Forex Robot trading and the tricks to maneuver. The nuts and bolts will be hidden herein.
Online jobs are jobs that came to save the day. You can work remotely and still measure up to an individual who takes a 9-to-5 work and salaried. All this is thanks to the advanced technology and internet that has made the world to be a village.
In fact, during this global pandemic, people are advised to work from home if they can. What skill have you learned with your high-speed internet at your disposal?
It may be leaning to jot great content for your organization, or maybe writing SEO content for that e-commerce website.
Sometimes you could be transcribing those interviews some court proceedings or even learning a thing or two about selling currencies online – from home.
All in all, you want to do something that will add a few bucks on your salary, and this is what counts. And Forex robot trading is such a thing.
What Is Online Forex Trading?
To start with, you must learn what Forex trading is.
This is the act of purchasing and selling world currencies. Now online Forex trading is such a practice but done individually over the internet.
You see, central banks, institutional investors, and corporations all invest and exchange foreign currencies for many reasons. Such reasons include the facilitation of international trade, balancing the markets, for tourism purposes, or even just to make a profit.
Why do People and Entities Trade Currencies?
Now, currencies are vital to the masses world over. They must be exchanges for foreign exchange o happen.
You might be living in Canada, yet you want to purchase cheese from France. Therefore, whether you are buying it individually or using a company to do it, one of you must pay the French company or the French seller in Euros.
What then this means is that you will have to convert or exchange the equivalent value of the money say the Canadian Dollars to Euros.
It is also the same with traveling. If a US citizen goes to Egypt for example, they will have to pay in dollars. However, while they are there, they will have to convert their currencies to Egyptian money for them to maneuver there.
Egyptian currency is pounds, and thus they will have to do their math to know how much they will receive in return for their dollars. That is a Forex trade.
Aspect of the international Forex market
There is something that you need to understand about Forex trading, and the aspect of the international Forex market, which is that there is no central marketplace for foreign exchange.
Therefore this trade is done electronically, thus the name online Forex trade; over-the-counter online Forex trade. Therefore, all the transactions are done through computers.
With a computer and internet, you can do business around the clock, trading worldwide currencies 24/7. Currency markets are many, and not far between, for instance, the renowned financial centers that trade worldwide are based in New York, Tokyo, London, Zurich, Hong Kong, Frankfurt, Paris, Sydney, across every time zone.
What this means, therefore, is that when a trading day ends, say in Tokyo, Japan, another trading day begins in the US and vice versa. Consequently, you see that the online forex trade is active at any time of day or night, with price quotes constantly changing.
History Of Forex Trading
Unlike stock markets which has deeper roots and has been in existence for many centuries, Forex is a new market. It came into existence since the time nations began to mine and mint currencies.
However, when we talk about online Forex trading, we mean the modern invention of Forex trading that can be carried out using computers and a reliable internet connection.
You see, after the Bretton Woods accord of 1971, major currencies started floating freely against each other. This gave rise to a possible fluctuation in rates. Due to this, there has always been the need to exchange foreign currencies when and where you can make a profit.
The narrative here is making profits even though; if you trade unwisely, you can incur losses. Commercial banks, as well as investment banks, conduct this trade on behalf of their clients.
This is, however, not exclusive to these entities as professionals and individual investors have flooded the market with the hope of making profit margins.
What Do You Need To Start Online Forex Robot Trading
There are a few things you need before venturing into this lucrative trade. One of them is first to understand the lingo. You need to learn and grasp the commonest lingo used in Forex trading.
This will make your entry into this vast world a breeze. There are specific terms that you will come across, including entering a short and long position, forex risks and rewards, to mention a few.
Others include choosing the right and legit broker, analyzing the world economy, and much. Then you can safely taste the waters- making your first move.
Fund Your Forex Trade Account
There is that interim period when you would be asked to trade with virtual money. This is that stage when you are learning the ropes.
After that, you will be required to trade with real money. Here you will need to deposit real cash into your trading account, and the broker will serve as a margin.
The amount you deposit will be leveraged by a ratio depending on where you and your broker are situated. Your broker for online Forex trading offers a wide arrange of accounts to choose from as well as the funding methods.
Therefore anytime you want to withdraw funds from your trading account, you will need to use your agreed method.
Online Forex trading platform to download
There are many online Forex trading platforms to use. Most online Forex trading brokers offer MetaTrader 4. There is also another popular one from the 5 platforms from Meta Quotes.
These can either be used online or downloaded free of charge. There are also proprietary trading platforms that you can download from your broker’s platform.
Nonetheless, downloading, installing and using them is easy peasy because there are well laid out instructions that will guide you throughout the trading process, needless to say, that you already know the process because you used a demo account before going full throttle.
Entering your first trade
Entering your first trade is called going live. This is often after you have taken your time trading using a demo account and learning the nut and bolts.
Doing this will help you avoid deadly mistakes. It is upon trading with this account that you can feel confident of going live with your online trading account.
When Is the Best Time to Trade
On the best time to trade, there can never be a one answer fit all.
You see, you are trading against a variety of currencies and against different times; therefore, you need to be glued to your screen to know when a currency gains over your trading currency and make a trade.
Funny enough, this is where most learners and experienced forex traders find it unpalatable.
They don’t have the patience to look at that screen to know when to trade. Unfortunately, they may end up losing a fortune when a good deal presents itself in their absentia.
You don’t have to worry anyway as there are Forex trading robots that could be handy in trading on your behalf when you are not online. Many companies today have come up with their calculators, which you can install and have them work-trade when you are away.
What is Online Forex Robot Trading?
When talking about Forex trading robots, you would also talk about automated trading since this is one thing. A robot for trading Forex automates your trading pattern.
This is an automated trading software that trades correctly on your behalf. You see, this is computer software that is created on a set of Forex trading signals. Thus, it can discern whether to sell or purchase a specific currency pair at any given time.
The best thing with Forex robot trading is that Forex robots are available around the clock. What’s even juicy is that you can purchase them through the internet. Since they came into existence, many people still doubt their workability.
However, here and now, we can say point blank that forex robots are effective. They work. There are a couple of the most renowned robots that you can partner with to make your online trading venture a success. One of them would be the EA Studio software.
Then there are a couple of many others.
Why Would You Want To Use a Forex Robot?
The sole reason why traders opt for Forex robot trading is that they want to make easy money from Forex trade without having to keep watch behind their screens.
The truth of the matter is that these robots are a god-sent innovation that works all the time. It automates your trade, and you do not have to sit and do your thing manually. If you are using one, you only need to choose a good currency pair and a perfect trading time frame when you think profits will be roof-tops.
There are many Forex robots, so there are those that can scan numerous charts in a way that you cannot. On top of that, these robots are coded with certain parameters that aid them in making the right trading decisions. They have trading signals that tell them when it is right to trade or when it is not safe to trade.
A proper robot for trading Forex online would suggest solutions for profitable trades even when the trade is murky or when the trading trend is not clear.
They will follow the right trends, and at the end of it, all enlarge profits. If you are not a Forex guru, you definitely might not know a lot about trading carefully against the trend.
However, with a trading robot, you can do this successfully. Thus, if you are starting out, and not confident enough, software for Forex trading can let you trade carefully against the trend and rip profits.
Advantages Of Forex Robot Trading
Trading robots are versatile and resourceful.
When trading Forex online using a robot, you don’t want one that only predicts the market’s fluctuation. You want one that goes beyond that, to provide you with an array of trading tools. Such a robot guarantees you of a quick, secure, and safe trading experience like no other.
You trade around the clock.
Well, humans are time restrained, and they can only trade at some given time. They cannot sit all day behind their screens, waiting for a positive trading trend.
Also, they will have to take frequent breaks to have lunch, bath, sleep, or running some errands. They have to dedicate some time to attend to their families and other responsibilities.
This is not the same with robots as they can trade 24 hours straight.
Therefore you should take advantage of the Forex Robot trading since robots are all the time available and can choose a perfect entry and exit opportunities.
Robots operate with no greed, fear, or ego.
You heard it; most people lose money trading online Forex because of fear. Fear acts as a defensive force that restricts an individual from making the right trading decision.
In the same breath, greed sends one to indulge in random trading, which might not be profitable. Now with robots, these emotions are not present, and they don’t operate on hunches; thus, they are more efficient in trading. The robots use past trading strategies to come up with quantifiable data in trading.
Trading robots act quickly on opportunities.
You need a good computer with super-fast speed to trade fast using a robot. With a fast computer, the robot can quickly identify opportunities and execute them. You cannot compare this to humans trading because they first must enter an order.
Therefore it takes several great minds to achieve what a Forex trading robot can do single-handedly.
Conclusion
There are many other advantages of using a robot to make online Forex trade. These robots can multitask effectively because they can monitor various currency pairs at a go, something which you cannot.
Having said that, however, you need also to know the drawback of this software as anything that has advantages bears an equal share of disadvantages. If robot A works for you, then you should embrace it. The bottom line is that they are a great deal to use for trading online Forex.