Forex Trading Software - A Secret Way To Make Quick Money In Forex?
When we talk about Forex Trading Software we mostly refer to software that can automate the forex trading process.
Trading on the stock market, you are faced with trading in the shares of hundreds of different companies, each with its own sets of uncertainties. To really make an intelligent decision on whether to buy or sell the shares of a particular company, you have to study their financial statements. But that will not tell the whole story. For instance it won't tell you about the new invention by their competitors that will wipe them off the market completely...
The forex market is different from the stock market in this respect. Information is more readily available. The same information is available to all traders, so at least theoretically they all have an equal chance of success, or failure.
Unfortunately real life is seldom that simple. You have hundreds of currencies out there. Something positively or negatively influencing the value of the Euro today can have an effect on the dollar tomorrow - or on the Yen this afternoon. You need lots of time and you need software that can track all the factors involved before you can make a really informed decision. If you are a full-time professional trader that's fine, but part-time traders seldom have the time and resources to do all this.
In comes automated trading software - software that will study all the different technical indicators for a particular currency and then come up with a trading signal - telling you whether you should buy or sell that currency.
The good ones will also explain to you how it came to that decision. That way you can learn how to pick up market trends yourself and therefore get valuable trading experience. The cheaper packages simply produce a recommendation, without explaining how it arrived there. An example of the first category is Trading Solutions and of the second category Lazy Trading.
Sworn supporters of fundamental analysis will no doubt tell you that, although the software packages might technically be working fine, they are flawed in a very basic way. That movements in the value of a currency can not be predicted by studying things like moving averages - they don't predict the price, they follow it. These traders will argue that currency movements are caused by fundamental factors: the balance of trade, interest rates and inflation.
Traders who firmly believe in technical analysis will in turn argue that all fundamental factors will in the end have to show itself in terms of a movement in some or other technical indicator. Whether it's the price breaking through the moving average, trading volumes changing suddenly or something else - there will be a change in a technical indicator. And the forex trading software will pick up this signal sent by the technical indicator and come forward with a trading signal. In the end your decision as to whether you prefer to do manual trading or make use of one of these software packages will be determined by time constraints and whether you are a supporter of fundamental analysis or technical analysis. - 23208
Trading on the stock market, you are faced with trading in the shares of hundreds of different companies, each with its own sets of uncertainties. To really make an intelligent decision on whether to buy or sell the shares of a particular company, you have to study their financial statements. But that will not tell the whole story. For instance it won't tell you about the new invention by their competitors that will wipe them off the market completely...
The forex market is different from the stock market in this respect. Information is more readily available. The same information is available to all traders, so at least theoretically they all have an equal chance of success, or failure.
Unfortunately real life is seldom that simple. You have hundreds of currencies out there. Something positively or negatively influencing the value of the Euro today can have an effect on the dollar tomorrow - or on the Yen this afternoon. You need lots of time and you need software that can track all the factors involved before you can make a really informed decision. If you are a full-time professional trader that's fine, but part-time traders seldom have the time and resources to do all this.
In comes automated trading software - software that will study all the different technical indicators for a particular currency and then come up with a trading signal - telling you whether you should buy or sell that currency.
The good ones will also explain to you how it came to that decision. That way you can learn how to pick up market trends yourself and therefore get valuable trading experience. The cheaper packages simply produce a recommendation, without explaining how it arrived there. An example of the first category is Trading Solutions and of the second category Lazy Trading.
Sworn supporters of fundamental analysis will no doubt tell you that, although the software packages might technically be working fine, they are flawed in a very basic way. That movements in the value of a currency can not be predicted by studying things like moving averages - they don't predict the price, they follow it. These traders will argue that currency movements are caused by fundamental factors: the balance of trade, interest rates and inflation.
Traders who firmly believe in technical analysis will in turn argue that all fundamental factors will in the end have to show itself in terms of a movement in some or other technical indicator. Whether it's the price breaking through the moving average, trading volumes changing suddenly or something else - there will be a change in a technical indicator. And the forex trading software will pick up this signal sent by the technical indicator and come forward with a trading signal. In the end your decision as to whether you prefer to do manual trading or make use of one of these software packages will be determined by time constraints and whether you are a supporter of fundamental analysis or technical analysis. - 23208
About the Author:
Making use of Forex Trading Software is a trendy way to build a residual income. Take a look at http://www.sneakymoneysystem.com how Forex Software IvyBot can make a change for you!
posted by X - Men @ 9:39 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home