Hot Stock Tips For All Levels #27 Automated Trading And Robots

Automated trading in the foreign exchange (forex) market is a relatively new concept that is rapidly growing in popularity among traders. It is the use of computer programs for entering trading orders with the computer algorithm deciding on aspects of the order such as the price and quantity and initiating the order without human intervention.
In general, most traders generally lose money due to two main reasons. One is due to the traders inability to manage their emotions of fear and greed. Poor traders usually exit trades too early because of fear or stay in trades too long because of greed. Using an automated trading system solves this problem because all trades are executed automatically with enter and exit points programmed into the system. Another reason traders lose money is due to not physically being there to execute a trade. For Canadian traders who want to trade the European session, they are required to be up in the middle of the night, whereas with an automated system in place, their trades are executed while they sleep.
Automated Forex trading systems are used to buy and sell on the Forex markets any time of the day. This means that traders can still enjoy optimal Forex trading and not be at their computer all the time. Automated Forex systems which are called Expert Advisors(EA) work according to your trading instructions. You set the parameters of your Forex trading program and instruct the system to execute based on your trading instructions on when to buy or sell. Also, a number of parameters can be set based on certain price patterns, market trends, technical indicators or any other rules of trading. The system will then use the parameters to create an algorithm that will work automatically on your behalf-any time of the day or night, any day of the year in any market around the world.
There are many automated forex trading platforms available in the market that allow you to customize your automated trading system. The most popular and user friendly platform is Metatrader 4 which is used by many brokers. In fact, most expert advisors (EA) are programmed on the platform so it is easy to get started. Automated Forex Trading Systems manage your currency trading portfolio all the time. They trade exactly as you would if you were sitting by your computer and trading all day. With a good automated Forex system, there is no worry that you will miss an important trading opportunity or sometimes, more importantly, get out of a losing trade. It allows you to carefully examine your own trading strategy ahead of time and design the system that works the best for you. You can tailor your trading to your own risk tolerance levels, which are inputted into your system. Therefore, the responsibility for making pressured decisions on-the-spot in an ever changing market is removed. More importantly, they take the stress and emotion out of currency trading decisions.
In the forex market that is always evolving, the only way to maximize results is to let modern technology work for you.
BOLA TANGKAS