Forex Manual Blog

Milton Ziegler asked:


As the Internet grows in popularity, more and more individuals are learning about the benefits of trading currencies on the Forex market. In recent years, Forex trading has become known as a great way of investing money. But if you do decide that you want part of the action, you should do some quick research on the Forex software packages on the market. They can help you trade easily and from the comfort of your home and office.

One great benefit about Forex software is that it can perform many tasks for you, and keep you up-to-date on the values of the currencies you are trading. If you had to do these tasks manually, you would have to spend many hours fiddling with newspaper reports, charts and graphs. But with the push of a button, you can know how and when to trade. With a general knowledge of where the currency is heading, you can allow your trades to run, or stop them as your position reverses.

But not only does Forex trading software allow you to manage your funds, it also provides you with the opportunity to withdraw or deposit money into your Forex account when you need to. This means you can leave your money in an interest bearing account until you are ready to trade. This way, you earn interest on your money and avoid having extra money sitting idly in your trading account.

Also if you want you can set up the Forex software so when the currency drops to a certain level or has reached a specified value, then it will automatically sell it for you. By doing this you are not only minimizing your risks, but it also means that you do not need to keep a constant watch and control over your profits.

However the best way of ensuring the software you are buying is right for your needs is to test it before you start investing your hard earn money. A good Forex software package will allow you to practice with the software using play money while you learn. Then once you are comfortable with trading, you can deposit some of your money into a trading account and start trading. It is best if you practice as much as possible before. This way you will be ready for any losses that may occur in the beginning. From the start it is best if you only invest small amounts of money when trading until you feel more confident with the software.

Forex software comes either as a desktop or Internet based package. The Internet software systems have several advantages over the desktop versions. One of these advantages is that you

do not need to deal with maintenance issues. The software seller often looks after these technical goings-on. Security is another issue you don’t have to concern yourself with.

The seller will already have in place more security measures than you can afford on a desktop version. The systems offer data encryption on a secure server and will therefore protect you for hackers and thieves. Plus, Internet based systems offer you more convenience than a desktop model. You can check your account no matter where you are in the world. All you need to do is key in your login and password information. You can then view your currency trading account in a secured environment.



MALLER

Vikram kuamr asked:


With advances in computer technology came the dawn of automated systems, allowing for artificial intelligence to replace human intelligence. The forex community has likewise been flooded with a variety of software intended to help traders do away with algorithmic calculations and financial estimations. Almost all forex software in the market promise that forex decisions can be made in less than half the time it took when manual forex systems were used, with the goal in mind that you earn twice more money at half the effort.

However, promises are claims until proven true. Although forex softwares are designed to reduce the onerous burden of sifting through an enormous amount of quantitative data, qualitative random factors (like politics and ideologies existing in the countries whose currencies are being traded) still need human analysis. Otherwise, every financial institution engaged in forex would have no need of its staff. So before buying into any forex software, read forex software reviews and forex trading software review, most of which you can access online.

Forex software reviews can help you decide on the best forex software you need. You might need specific software to do a specific job for you; remember that not all software can do all the jobs you need it to do. Otherwise, there would be no need for the development of a separate forex forecasting software, from forex charting software and from forex trading software. Forex software reviews can assist you in determining the most appropriate forex software primarily because they will describe the functions available therein. However, caution must be observed as online forex software review companies are thinly-veiled marketing arms. Likewise, a forex trading software review must be taken with a grain of salt. Forex trading softwares usually have common features that enable you real-time access to the forex trading market, up to the minute account statements, display of statistical charts and historical data, and trading orders, among others. If a forex trading software review claims additional features that you have not heard of, ask your colleagues about the features or try out the product yourself (use the free trial period, if available).

Smart Forex Live provides forex software reviews and a forex trading software review for a variety of forex software. These include the Forex Killer, the Forex Trading Machine, the 5EMAS Forex Trading System, the Profitable Trend Forex System Review, the Easy Forex Trading Platform, and the FX Instructor. The best thing about Smart Forex Live’s reviews is that it aims to be honest about the capacities and limitations of the software, to enable potential users to use their good judgment when making a full commitment to purchase. Unlike a marketing arm, Smart Forex Live will tell it as it is, including even asserting that forex success demands human motivation and drive, something that even the most perfect forex software cannot provide. And as Smart Forex Live does not directly provide any forex products, you know that they will truly test the product before putting out a review. You have the assurance that the review is impartial and objective.



TELEP

Anne Tide asked:


For beginners, forex trading seems exciting. For those who are professionals, they know that there is a lot of hard work and effort to put into succeeding. There are many traps one can fall into on the Forex market and they can lead to important loses. So, how does one manage to trade on the forex market making handsome profits? Let’s take a look at the possibility of Forex Managed Accounts.

Forex trading is a foreign exchange market, offering many advantages especially when it comes to making profits. Just as well, if you are not experienced at trading, you can very well end up losing everything. This is why you need a specialist handling your account and trading all that money successfully. If you have a full-time job and you do not have the necessary time to spend learning the secrets of forex trading, then by all means consider Forex Managed Accounts. They represent a new way of entering the forex market without having to spend time you cannot afford wasting in front of your computer. You might even consider the profits derived from your Forex Managed Accounts as passive profits. And they can be handsome profits, be certain!

If you go for automated Forex Managed Accounts, then the whole thing is even less complicated. The automated programs are made by experienced traders and they can offer investors a great way of handling your account. Being forward-looking, the automated trading software takes into consideration all there is to know about forex trading, including recent transactions, various indicators and statistics. As perfect as these programs are, they cannot surpass the intelligence and the experience of an investor. Manually traded accounts can also generate nice profits, so make sure that you consider the benefices provided by each.

Searching for Forex Managed Accounts has been completely simplified with the help of the Internet. Now you can easily get in contact with professionals and find your way to the forex trading business. Specialized companies and their experienced investors will not only obtain for you substantial profits but they will know how to avoid taking risks. They are trained in various risk management procedures and they know how to deal with Forex Managed Accounts professionally.

The advantages of using Forex Managed Accounts are more than obvious. Sure, you want to trade on the forex market but you do not know anything about foreign exchange, charts and indicators. So, the solution is to choose a specialist to handle your account for you. No matter if you go for automated or manually managing, you can still rest assured and benefit from a huge opportunity. With the help of the Internet, you can discover all the available information about forex trading and how managed accounts are used. You just have to keep one thing in mind: they represent a sure way to maximize your profits without requiring too much effort on your part.

Forex Profiting is certainly much easier to achieve with the help of Forex Managed Accounts. These experts know how to play with real money and they have all the knowledge required. For them, Forex Profiting is an easy achievable dream. They work long and hard, being committed to trading efficiently and they only require a small percentage of the profit obtained. It is a win-win situation for both of you and a wise decision indeed.

What you need to understand about Forex Profiting and forex trading in general is that it is a risky business. It requires a great deal of knowledge and cold analysis; it requires a company that is specialized in managing forex accounts for some time now. They have a particular trading style, executing trades that are beneficial and that ensure you regular profits. As forex trading stands both for huge profits and incredible losses, you need a person that is knowledgeable in the field to be sure of your success. Forex Profiting is not a simple thing to obtain and you must take all the measures you can. That includes having a professional handling your accounts. So, do not waste any more time and go online. Search the Internet for forex managed accounts and see for yourself how profits are made!



LOUCKS

Winston McCafferty asked:


It’s important to succeed at Forex trading, is it not? So, what’s it like when you imagine quickly and painlessly trading the Forex successfully?

Then, just imagine how great you’ll feel when you can quickly and easily spot the market conditions and setups that will lead to successful and profitable trades.

It’s easy to do for traders who use proven methods , tested Forex trading strategies, and most importantly good coaching and training. After all, winning is what proven coaching and Forex training does for you.

The role of the truly effective trading coach is to create the right conditions for learning to happen, and to continually motivate their students. Most Forex traders are already highly motivated and therefore the task is to maintain that motivation and to generate excitement and enthusiasm.

The roles that an effective trainer/coach undertake are many and varied. At some stage they will be your: instructor, assessor, friend, mentor, facilitator, demonstrator, advisor, supporter, fact finder, motivator, counselor, organizer, planner and the fountain of all knowledge - so it’s important to find a good one.

With the thousands of different Forex training courses available, how do you know who’s got one that works? There are many to choose from, all making the same claims. Plus, Forex training is notorious for being filled with charlatans out there selling their get-rich-quick snake-oil.

The reality is that not everyone can make thousands of dollars overnight. If you could, we would all just buy the latest “Miracle Money System” DVD set for $500 and quit our jobs tomorrow. Yeah right!

The problem with being new to the Forex is that you don’t know who to trust. So let me show you seven “must haves” to get a real, genuine education in Forex.

You should get, as a minimum:

One - 24/7 Access to online training materials - professional videos, recorded live trading sessions etc. It’s important to be able to have access to them on your own time, and at your own pace. Plus, it’s nice to review things when you’re trading.

Two - A comprehensive written manual - some people learn better by reading than watching videos and nothing can substitute for well written teaching materials.

Three - Look for courses that offer live interactive sessions that let you look over the shoulder of a professional trader in real-time. These should be offered at least monthly but weekly or daily is even better.

Four - You want live monthly extended day-long online classes that allow you to review, all the information you received, get updates on the current market, and learn what’s working now.

Six - One-on-one mentoring (this one should probably be #1) to give you specific actionable trading advice. Encourage you to make progress and correct bad trading habits or techniques. This is the big one! Nothing works better than personalized coaching.

Seven - The live onsite option - Look for courses that offer periodic onsite training opportunities. An in-person seminar has its own dynamic and its own unique learning opportunities that you miss in ebooks, videos, or email and telephone mentoring.

Look for those seven features in a Forex training course that is offered by a successful professional trainer, with proven abilities to teach. After all, just because someone’s a great trader does not mean they can teach. Michael Jordan was a legendary basketball player, but openly admits he can’t coach.

Remember, success comes with commitment and action “period”.



DOCHERTY

Sam Beatson asked:


Creating a forex trading system that works is a task some people assign to a divine entity who magically manifests itself as a marketer selling the latest “holy grail” forex trading system. When it comes to an automatic 20 pip forex trading system, the search is likely to be long and arduous, because of the old adage “if he’s doing it, why isn’t everyone doing it”.

In fact, I don’t believe there can be an automatic 20 pip forex trading system because there is always the element of the forex market which is totally unpredictable.

It’s not irregular for a forex analysts whose automatic 20 pip forex trading system is based entirely on his fundamental and technical analysis has to come back the following day and explain an unexpected reversal due to fundamental (socio-economic) news being announced lower or higher than expected resulting.

Another example of why this may happen in these times is a decision made about the war in Iraq for example that has resulted in emotional buying or selling of the USD for instance and therefore rendering the automatic 20 pip forex system another forex loser for the day at least.

So, if fundamental analysis can not be predicted, and as one author puts it “no one knows whats going to happen” in the forex market, how can an automatic 20 pip forex trading system be created?

The answer lies in the understanding of the word “automatic” If you truly want an automated automatic 20 pip forex trading system, you are going to be hard pushed. This is because there are going to have to be rules, such as not trading in the vicinity of newstime where the market reaction can be unpredicatable based on technical indicators due to the reaction of the market to the news as opposed more than predetermined technical levels which tend to get overidden particularly during major announcement such as the non-farm payroll data once per month.

However, you could call a manual trading strategy which makes a fairly consistent 20 points an automatic 20 pip trading system, but there has to be a footnote really, and that footnote must include various rules about the automatic 20 pip trading strategy as to when and how the system can and should be used exactly. The system itself is automatic in the way it roduces buy and sell signals, but, due to the nature of the forex market, it must be traded manually in reality using intuition and skill to not trade during false signals.

If you decided you were going to create the makings of an automatic 20 pip trading strategy, you cannot call it that immediately, because at first it sometimes will be good only for 10-15 pips rather than the full 20. At other times, it may give you automatic signals which tell you to get into a trade which goes for 50, 70 or even 100 pips at a time, which for an intraday forex trading system would be borderline outstanding considering the market may move in a range of only 120-150 pips on a reasonable trading day,

For an automatic 20 pips forex trading system then, one must know the online currency market fairly well. One must have education and mentoring and at least training in some indicators and strategies to understand the reading of the market technically, as well as a sound understanding of the fundamental analysis aspects of the forex market.

For myself, the automatic 20 pip forex trading system I utilise contains a good deal of classic trading rules, fibonacci retracement zones are mapped in, moving averages abound and there is use also of momentum and strength of the market indicators with as much lag reduction as I have found possible with fairly foolproof fail-saftey measures to reduce false signals to an absolute minimum.

Contrast that with a trader I spoke to today and I was flabbergasted to hear together we brainstorm from being technicals-crazy to having an automatic 20 point trading system that gives at least 2 signals per day across three currency pairs (a total 40 points daily target for the system) using only 3 lines on-chart and absolutely nothing offchart - not even a care about news (fundamentals) particularly because it ‘does his head in’. So, just as the fat lady sings when its all over, so expect that anything may be possible.

A system is automatic in that it one to be confident to enter trades. A forex strategy is manual in that it is the forex trader who pulls the trigger on a trade. Its automatic though in terms of generating the entry signal based on the lining up of a few indicators on the chart and off the chart. Rules include the times of trading being particular market hours and avoidance of important announcements is key.

This article concludes that it is possible to create an automatic 20 pip forex trading system, but it takes a lot of trial and error to create an automatic 20 pip forex trading system that does not generate a whole bunch of false entry signals and actually captures trades that go the 20 pip distance.



WHITTLESEY

Matthew Bass asked:


Imagine the next time you join a discussion about automated forex trading. When you start sharing the fascinating automated forex trading facts below, your friends will be absolutely amazed.

The concept of automated forex trading is fast catching on. The first market to move to automated trading was exchange-traded futures. Following this, traders working in the Interbank spot FX market too moved on to this system.

The success of the system flows from its ability conduct trade in real time. This is difficult to achieve manually, especially if the trading is to be done in milliseconds. Also, there may be times when a trader may be away from the desk, or a trader who has incurred a series of losses may take time before placing a fresh order. These are dampers that automated foreign trading removes.

Another advantage that automated trading brings in is diversification. It is possible for a trader to trade in different markets, and in different time zones. The trader can also deploy multiple trading models.

The trader can also use the automated model to analyze short-term data, which is not possible otherwise. This gives the trader an advantage over others who are not using the automated trading system. The trader can use this short-term data to analyze how the market will move in the next 15 minutes or half an hour, and accordingly take decisions. Also, high frequency trading allows existing data to be used in different ways in different markets.

The information about automated forex trading presented here will do one of two things: either it will reinforce what you know about automated forex trading or it will teach you something new. Both are good outcomes.

Automated trading also improves liquidity. This is quite apparent from the way the number of trades shot up in futures exchanges following the adoption of automated trading.

However, one area that worries traders is the likely increase in the number of orders once all traders adopt this system. The fear is that there may not be sufficient bandwidth or engine capacity to execute all these orders in real time. Already, some quarters are employing controls to guard against unnecessary order messages.

Risk management is another area that worries forex traders. An automated trading environment’s risk management logic requires that before a new position is opened a check be made to ensure that there is no excessive correlation with already opened positions. For this check to be accurate, all systems need to be synchronised. But these are technical issues that the market feels will be resolved as the technology improves.

For the time being automated trading in forex is the buzzword.

Knowing enough about automated forex trading to make solid, informed choices cuts down on the fear factor. If you apply what you’ve just learned about automated forex trading, you should have nothing to worry about.



RIEDL

anonymous asked:


In order to succeed in forex, you will need to take the time to learn forex trading. Once you have studied and understood the techniques and strategies involved, you will have a much higher chance being successful trading on the foreign exchange.

As with any new venture, it’s not fun reading through pages and pages of manuals to learn a strange jargon and new skills, but if you are going to be risking your money in the Forex, it is important to learn forex trading thoroughly to ensure that you do not lose that money.

It goes without saying that you will probably not “get rich quick”, or be guaranteed to never lose money if you take the time to learn about forex trading with eBooks, courses, and/or seminars, but they can certainly improve your chances of being successful.

One of the ways to learn about forex trading is through seminars. The seminars available can be useful in your Forex education because they are interactive and usually go into the finer nuances of trading. The nice thing about seminars is that they are interactive, so you can discuss points with the lecturer and discover new things about Forex, even if you are at your third or forth lecture.

You can also learn about forex trading by purchasing a study package or guide from various broker companies and Forex itself. These usually go into immense detail about every aspect of Forex trading and can be used by the professional trader and by beginners.

There are also various eBooks available on the internet that can help you learn forex trading.

The first thing you will probably want to master when you learn forex trading, is how to read financial currency charts so that after going through the data and trends, you can make a prediction about the next rise or fall of a currency trend. By doing this effectively you will be able to improve your chances of placing your money in the correct market and making a profit.

It seems simple in theory, but there are many factors that can make a simple idea much more difficult in the real world. If you take the time to learn forex trading, either through an eBook, course, or seminar, you will have an opportunity to discover all the tricks and tips that can help you improve your odds of succeeding when trading online. There are even software packages that can help you to predict the next trend and keep track of patterns in the foreign exchange rate.

When you learn forex trading, the learning never really ends, as there are always new and improved methods, newly discovered strategies, different currencies, etc. If you take the time to learn more about forex trading BEFORE you trade, hopefully you can make much more money than you lose.



FOLGER

Tom Roberts asked:


First off we must confirm a few basic facts about the foreign currency trading system. It is the largest financial market on the planet and has the greatest number of participants and investors. The huge daily turnover and presence of such a large quantity of traders and investors requires a system that meets superlative needs for a massive industry. Why don’t you consider the following points when discussing the importance of an automated system for the forex trading market:

Banks are one of the bigger ‘players’ in the forex trading system and are not just here to service your frugal needs and capital loans (addressing all you blood hungry entrepreneurs out there). The banks service a massive amount of speculative trading and service the daily monetary circulation as well by trading and investing billions of dollars in the foreign currency market daily, considering a portion if the investments are on behalf of their clientèle and the rest are traded by the bank itself.

Commercial companies are up next. here’s how it goes folks. get yourselves comfortable…did you pour that bourbon yet? Well, if you didn’t please do so. I’ll wait. Ah good. there we go. I like to do these things in a relaxed fashion. Anyways, back to commercial companies. These guys are also players in the foreign currency market although their investments are slightly smaller than the bank trades, however still significant enough to make this list. the trades made by these companies may be more short term but their impact on the forex market is undeniable and influences the exchange values when it comes to the overall long term trajectory.

Number three on our fabulous list are central banks. You may not realize it but central banks play a somewhat significant role in the forex market and have a certain amount of influence on the currency values, interest rates (blasted interest rates!) and market inflations as well as influencing the stability of the forex market via foreign currency exchange reserves. They have impact also due to established trajectory rates for the currencies that they themselves are trading.

Guess who comes next? How could we leave them out? Investment management firms. yes, yes. Those young,cocky, rosy cheeked well fed prep boys straight out of college who are investing YOUR money. Leave it up to them. Passion succeeds where reason fails and surely you know that they have no reason. Just kidding. Actually, aside from the fact that these firms handle massive amounts of money for their prestigious clientèle part of their management extends to the forex market where they mediate transactions via the currency system, mainly in foreign securities. If you don’t know what I’m talking about, please go back to the previous page.

Oh la la we’ve come to my favorite rookies. the retail forex brokers. these boys ain’t as rosy cheeked as our previous lads but they certainly know how to manage a small, yet significant portion of the forex trading system. One retail forex broker conducts transactions of twenty five to a fifty billion dollars a day, in retail volume. It may only consist of 2 percent of the currency trading market but hell, that’s a lot more than you ever did.

Now we get to the more interesting humanoids. The speculators. It almost sounds scary, but honestly, they’re just mammals with fore brains, like me and you. these courageous dudes buy foreign currencies and reap benefit not from interest and dividends but directly from the currency market’s fluctuations. They are pretty high risk. that’s the only scary thing about them. although it’s best this way because somebody has got to handle the priceless burden of risk. So far we have named six ******** players involved in the volatile yet lucrative foreign currency trading market and they all are involved in the daily two trillion dollar circulation. ergo, a sophisticated and automated system would be most appropriate in handling the complex arena.

There is one group for which the automated forex system works to their benefit big time and these are the speculators (blasted clever risk takers!). They are concerned about the market fluctuations, specifically the values and real time info ameliorates their process of determining which trades they should invest in. Super smart and super slick.

Manual systems have become pretty obsolete in most financial markets and most of the financial systems have incorporated the process of atomization. Some automation systems come without cost and are pretty reliable and sometimes the automated system is received when opening a forex account online or via a broker. what a world! Usually the automated systems that come with opening an account are pretty simple but you may purchase a more advanced system by adding an additional fee. Now that you’re a forex market genius and know why we need automation (yes an automation nation! who needs to think anymore?( we shall discuss the two types of automation systems.

the first system is desktop based and all your important forex information is put in your desktops hard drive. A lot of traders do not appreciate this system because your info is exposed to potential viruses or other bastards that hack into your computer security. Plus, if your computer all of a sudden loses a ***** and goes nuts, most of or all of your data may be lost and never ever ever found again. pretty scary, even more than the forex speculators. It is however significantly cheaper and should you choose this type of system, always make sure to have back up.

The second type of system is web based and your forex account’s security and other info are available via your web provider. Obviously the host would be a secure server and this system is far more efficient since you need no software and it is compatible with any type of computer because it’s via the web. the best part is the fact that if anything gets screwed up or lost-you have THEM to blame.

Basically you should explore various demos and see what tickles your fancy. just like choosing a mate, you know what I mean? Trial and error, baby, trial and error. By doing a little research you will find the system that suits your forex trading strategies.



MIELNICKI

Andrew Daigle asked:


As part of your Forex trading strategy, you must be able to manage the money that you invest in trades and determine when it is advantageous to enter or exit a trade. Most trading strategies are good for determining when a trade should be entered, but not all strategies establish an exit. If your Forex trading strategy does not provide exit points, you will still need some method of determining when to exit.

Profit and Loss (P/L) - Forex trading systems provide one of the easiest forms of executing and monitoring profit and loss (P/L) in investments. P/Ls in the spot market are generally measured in decimal units. A calculation of the long and short position for a leveraged currency pair will easily provide you with the amount of profit and the amount of loss.

Gains to Losses - You also need a method of predicting the chance of profiting from your trades in order to decide how much money to invest in your Forex trading strategy. By calculating the ratio of gains to losses you will be able to determine if your trades are providing a higher percentage of gains than losses. If your trades are gaining then you need not invest more money into already winning trades.

Risks to Reward - Since Forex trading systems involve risk, you need to able to measure the risk taken as compared to reward received. A risk/reward ratio may be determined by dividing a take-profit spread by a corresponding stop-limit spread. No rollover or interest rate differential is required. You are cautioned against allocating more than 10% of your total investment funds into a single trade as either margin or risk. Your Forex trading techniques should include enough funds to allow you to engage in multiple trades. If some trades result in loss, those losses have the potential to be recovered with other winning trades. If half or more of your trades result in loss, you need to analyze and adjust your Forex trading strategy.

Limiting Losses - You may limit the amount of loss by adjusting take-profit and stop-limit orders relative to the entry market price. By raising stop-limit orders and lowering take-profit orders, you may reduce loss potential. If prices create adverse results, you may eliminate any further loss by manually liquidating the trade. If price moves are favorable, you may increase your limits. In some instances it may be advantageous to raise the stop-limit order above the market entry price. This guarantees a profit of at least the originally targeted price and at most, the newly established price.

If you have taken a long position, you should avoid lowering stop-limit orders and accept a loss or trade a different currency pair. Take-profit orders should only be lowered in long positions if a reversal is anticipated. Otherwise, you should liquidate. If you have taken a short position, you should avoid increasing stop-limit orders and only increase take-profit orders in anticipation of a reversal. Many large losses are due to moving and removing stop-loss orders. The Forex trading strategy for uncertain traders should be to liquidate trades for small losses or small profits rather than hanging around to suffer a greater loss.

With most Forex strategies, stop-loss orders are typically placed below and above previous highs or lows. However, you may find it advantageous to set your stops according to market volatility. Using charts of recent currency pairs you should be able to gauge shifts in volatility. This information could then be used to set stops and price objectives. This method may also be used to establish entry points in the market.



LUZIER

Gerald Mason asked:


Just how important is an automated system to the Forex trading system?

Before we answer that question, let us first determine how large Forex trading market is. From there, we will know the importance of automated systems for the Forex market.

It is true that the Forex market is the largest market around the world not just in terms of average daily turnover and average revenue per trader. It is also the largest market in terms of participants.

You name it, we’ve got it. Take a look at the following:

BANKS- they are not just for saving money and lending capital to entrepreneurs, but they are one of the major players in Forex market. Banks cater both to large quantity of speculative trading and daily commercial turnover. Well-established banks can trade billions of dollars worth of foreign currencies everyday. Some of the trades are undertaken on behalf of their clients, but most are through proprietary desks.

COMMERCIAL COMPANIES- these commercial companies trade small quantities of foreign currencies compared to larger banks and their trades produce small and short-term impact on the market rates. However, the trade flows from transactions made by commercial companies are essential factors with regards to the long-term direction of the exchange rate of a certain currency.

CENTRAL BANKS- central banks play an important function in the Forex market. They have the control over the supply of different currency, inflation, and interest rate. In addition, they have also official target rates for the currencies that they are handling. They are responsible for stabilizing the Forex market through the use of foreign exchange reserves. Their intervention in the market is enough to stabilize a certain currency.

INVESTMENT MANAGEMENT FIRMS- these firms commonly manage huge accounts on behalf of their clients such as endowments and pension funds. They are using the Forex market to facilitate transactions, specifically in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases.

RETAIL FX BROKERS- they handle a fraction of the total volume of Forex market. A single retail Forex broker estimates retail volume of between 25 to 50 billion dollars each day, which is estimated to be at 2% of the total market volume.

SPECULATORS- these are individuals who purchase and sell foreign currencies and profit through fluctuations on its price as opposed to popular methods such as interest and dividends. They perform the important role of transferring the risk to individuals who do not wish to bear it.

In Forex market alone, there are already six major players partaking on the $1.8 trillion worth of daily turnover. With a large number of Forex players, there is really a need in switching from manual to automated Forex trading system.

Among the aforementioned major Forex players, the automated trading system is of great advantage to the speculators. Since they focus on the price fluctuations of various foreign currencies in order to profit, the real time data analysis will help them determine trades that will give advantage to them.

There are several automated Forex trading systems available in the market. There are also automated Forex systems that are offered for free or as part of their trading account acquired from their Forex brokers or agents. Such complimentary system packages are typically elementary trading system. Thus, if you are looking for more features, you can avail of it through additional payments.

There are two types of automated Forex trading system. These are discussed in the following:

Desktop-based system- all Forex-related data are stored on your desktop’s hard drive. This system is unpopular to Forex traders because all data are susceptible to computer virus contamination and other security problems. Worse, when the computer malfunctions, all essential information might be lost and cannot be retrieved (unless you have some back-up files of your own). However, it is little expensive compared to the other types of automated trading system.

Web-based system- the security of your Forex account and other data are provided by your web-based provider. These are hosted on secured servers. It is also convenient in the sense that there will be no software required and it is universally compatible with your Internet browser.

You may also try different automated trading system demos first so that you will be able to determine the automated Forex trading system that suits your personal preference and needs.

Even if you are just a small-time Forex player, it will be to your advantage if you will use an automated Forex trading system for your future trades.



MORET