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Automated Forex Trading Robots – How They Can Assist With Forex Trading

To properly familiarize yourself with these programs, you must ask these two important questions: What is an automated Forex trading robot and what does it do?

Trading robots are not actually machines as what one would think. They do not consist of mechanical parts that magically make a profit at your command. The term “robot” is a symbolical term that means helping you with your trades by pointing out what currencies are hot, when to sell them and when to buy them. Forex trading robots are based on artificial intelligence created specifically for the international currency market.

An automated Forex trading robot helps keep the trader up to date with specific currency trends. It monitors the rise and fall of prices in relation to the volatility of the market. It makes use of mathematical algorithms to make computations and predictions of the prevailing trends. In order to validate the algorithms the system bases its data on historical charts and its own careful analysis of market trends.

Forex robots have numerous benefits. One of the benefits these robots have is that they are able to process quite a bit of information very quickly, thus allowing them to make more speedy and rational decisions than humans. Forex robots are an excellent choice for those on limited schedules who are seeking to increase their profit. Another nice aspect of how these robots work is their ability to look at things purely rationally. They don’t become worried, nervous, or upset causing them to be valuable in a market as chaotic as the Forex market.

Just because the robots have their benefits does not mean that they do not have some severe drawbacks as well. It isn’t wise to choose just any Forex robot to do your bidding. Therefore, you must look into the details of each one that you consider. While there are very legitimate Forex robots, there are also several scam artists hard at work trying to grab at your wallet. It is important to seek out any reviews that people may have written along with calling the company to see if it’s possible to speak with a real person and not just an automated recording. It’s important to take note of which currencies a particular robot works best with. This isn’t meant to be bias; some currencies perform differently in the market than others. Each Forex robot is different; therefore, they each perform certain trades differently. Some robots do better with larger trades while others do better with smaller trades. Once again, it is very important to do your homework on the way these robots work.

Though it may be true that a novice trader can use these robots, I personally would not recommend it. You need at least some knowledge and experience as a trader in order to know how to handle your robot. Some robots give you the option of manual control; those are the ones that you want to use. When considering features, you must take into consideration what you’re looking for specifically in a robot. A Forex robot is not a cure-all, it isn’t magic. You have to know what to do with it. It’s also equally important to shop around, just as you would shop around when searching for a new vehicle. Remember, when you combine the efficiency of a good Forex robot with your own skills as a trader it can be very beneficial. You may also learn some things about trading after having a robot for a while.

Forex Money Management – Incorporating the 80-20 Rule For Triple Digit Gains

Forex money management is the hardest part of forex trading and most traders simply make errors that doom them to failure. Here we will look at how understanding the 80 / 20 rule and using it in your trading system can make you bigger profits with less risk…

The 80 / 20 rule is simple and states:

That a small number of causes (20%) is responsible for a large percentage (80%) of the effect. The principle was named after the Italian economist Vilfredo Pareto, who noted that 80% of income in Italy was received by just 20% of the population. The value of the Pareto Principle in life and forex trading is – it tells you to focus on the 20 percent of your trading that really matters.

Most traders simply trade too much and the 20% that matters are really just the high odds trades – get rid of the marginal and low odds trades and trade high odds set ups only.

The fact is many traders think the more they trade the better and the more chance they have of enjoying currency trading success. Most try trading the market noise and try forex day trading or scalping – but they are doomed to failure and get wiped out. Trading profits are not correlated to how often you trade, as you are only judged on being right with your trading signal.

If you trade 100 times or twice all that matters is the amount of money you put in the bank from your market timing.

I know traders who trade just a few times a year and make somewhere between 100 – 200% just simply because they wait for high odds trades, hit them and hold them.

Trading less, is more time efficient and more profitable.

Look at any new traders account and they will be over trading and if you make the mistake of taking marginal trades you will lose.

Money management is all about protecting the account equity you a have and if you focus on high odds set ups only, you are going to increase your profit potential overall.

The 80 / 20 rule works in forex trading just as it does in all areas of life and if you use it in forex trading you will focusing on making money and that at the end of the day, is what forex trading is all about.

So think about it, apply it, watch your profits soar and your account equity risk decline and get on the road to currency trading success.

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