Forex robots are automated algorithms wherein data is inputted by another and then the same is analyzed. The results are trading strategies, market prediction, necessary charts, etc. at the click of a button. Simply put a forex robot is software that is utilized thru technology-based hardware such as laptops, tablet pc’s, smart phones, etc. This article does not belittle the importance of technology in forex trading. On the contrary, the importance of the same is recognized. This is especially true when it comes to the collection and transmittal of raw data as close to real time as possible.
How to Trade Forex with Robots
The FX market is fast paced and cutthroat. Therefore having all the latest technological advances grounded on proper education, training, and experience is an advantage. Forex robots can be used either as a training tool or in actual live trading. For example, a forex software that determines relevant indicators and specific values can be used to determine how accurate your judgment and readings are or utilized to analyze indicators and formulate strategies faster than the competition.
How to Trade Forex: Selecting the Proper Software
Start by trying dozens of demo accounts in order to analyze functionality and interface. For best results, you need to read the user’s manual and not just wing it. Pay special attention to add on functionalities on premium accounts as well as basic and add on costs.
How to Trade Forex without robots
One has to delineate between software and other technology or multimedia based sources. The former provides analysis while the latter provides raw data via automatic feeds, alerts, mms, text messages, etc. While you can work without the former, you cannot effectively trade without the latter. This is because every respectable trader utilizes multimedia devices in order to get raw data and important news as close to real time as possible. This means 24/7 updates as soon as the data is available.
How to Trade Forex: Software substitute Peopleware Not Vice Versa
Bear in mind that Forex robots were developed to substitute actual human thought process. This means that the former is merely a convenience and not a necessity. These thought processes include but are not limited to the following:
- Identifying relevant indicators
- Reading Charts
- Pinpointing direction and relevant movement
- Determining position
- Step by Step Execution
Of course, if you are lacking in both practice and experience you may want to avail of practice accounts that provide you with real life trading scenarios. This can be likened to a flight simulator for pilots. This is because it is better to make basic mistakes that cause you to crash and burn in a controlled environment rather than in the trading floor with actual investments.
There is no harm in using a forex robots or software in order to make your trading experience more convenient. It is however, another thing to forego basic training thinking a robot can do the work for you. The former enhances the experience, while the latter is a veritable accident waiting to happen.