The Many Advantages Of Automated Forex Trading

Forex trading markets are starting to see many traders move towards automated trading. But what does it have that makes it so preferred? With the implementation of sharp entry, exit and capital management rules, traders can come up with an automated trading system where computers monitor and run trades. What makes automated trading a powerful strategy is the fact that it removes emotional elements from trades, allowing them to play out without any human interference. 

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What Is Automated Trading?

Automated Forex trading systems also known as algorithmic trading systems enable traders to specify a set of rules pertaining to entries and exits, which once established, are executed on a computer. The trader's job here is to only decide on a profitable entry and exit, the rest of the trade is handled by the system.

While many believe that automated trading systems handle every aspect of trades, that isn't quite the case. The most important part of winning a trade right through this means is to establish precise entries and exits, which requires intense researching on the trader's end! The complexity of the strategy employed is up to the traders' tastes, but the fact still remains that no matter how much of the trade is automated, a good amount of work still has to be put in.

Here are the advantages and disadvantages of automated trading every trader should be aware of:

Pros:

Emotional Control: 

The primary benefit many look to avail from algorithmic Forex trading is emotional control. Many a trade has been sabotaged by getting over-emotional! Bad trades and some lost money always manage to stir up negative emotions in trader, pushing them towards overtrading. On an automated trading system, trades will be executed automatically once the rules have been set. There won't be any room for cold feet! Additionally, trading will happen within set limits, hence keeping traders away from giving into the vile clutches of overtrading.

Staying Disciplined: 

Volatile trading markets and violent trading mindsets are a destructive combination, unfortunately, however, this is the duo most traders house. Forex trading is a field that requires incredible discipline. Traders end up crossing to the wrong side once they lose money. Fear kicks in and all traces of discipline vanish! Likewise, getting greedy is another trait seen in most novices. With an automated trading system, the chances of giving in to greed and fear rapidly drop, allowing traders to stay in control and keep unnecessary losses at bay.

Consistent Results: 

A big challenge many Forex traders face is keeping the profits consistent. One step forward, two steps back, is the typical trend seen in the trades made by most beginner and intermediate-level Forex traders. The profits made get overshadowed by losses! Consistency is hard to find with the currency markets being so volatile, that's a given, but many times it is the trader who makes mistakes that lead to a varying and imbalanced win-loss ratio. Algorithmic trading, however, will ensure traders see better wins and see them more consistently.   

Faster Order Entries: 

Manually making entries in an ever-changing market requires an immaculate level of focus. While traders themselves can work at swift rates, an automated system can do it better. Market conditions are always shifting, and an algorithmic system will catch these changes immediately. Every second matters while Forex Trading! What an automated trading system will do is generate everything from an order to the stop-loss once you enter a position. This will allow you to keep up with the raging-fast markets and walk back with healthy profits.

Multitasking: 

With an automated trading system, traders can trade different Forex trading strategies on multiple accounts simultaneously. Doing this manually would leave you at a risk. For a system, however, this problem is non-existent! Multiple trades are carried out at breakneck speeds, with minimal errors. With the algorithm scanning for opportunities in the background, you can be sure of the fact that every lucrative chance that shows, you will have access to. 

While incredibly advantageous, the learning curve isn't too gentle with automated Forex trading. You, as a Forex trader, have to make proper calls based on which the system will function! One mistake here and everything will start cascading. Don't make the mistake of thinking algorithmic trading to be like a background process with you diverting your focus elsewhere. You will have to keep an eye glued to monitor the system and make sure things are going as necessary.

Likewise, a technical fault in the software might lead to poor results, which means losses. Software is always prone to faults like these and to unforeseen server problems and connectivity issues. Relying too much on automated Forex Trading Strategies might not be a wise thing to do either. However, if you're able to maintain a good balance, you can see the best of both worlds!

Sign up with a reliable broker like WesternFX today and take your trades to new heights! With our veteran traders to guide you diligently, success will be swift and guaranteed. Start seeing real profits now, call us and let's get started! 

4 Golden Questions About Forex Trading

Many traders start off with retail trading or stock trading, and once they move to Forex trading, they're left with a burning curiosity. Delving into Forex without knowing some basics might prove to be costly. The currency markets are one of the most volatile trade markets in the world, and you will without a doubt need to be knowledgeable if you want to profit as a currency trader. With the internet taking over, many people have started online trading and many more are moving towards the Forex markets.

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Here are 4 Forex trading questions most inquisitive traders have: 

1) What Makes Forex Trading Different? 

Forex trading is the most liquid market in the world, and also one of the most risky trading domains. It is decentralized and there's no universal governing body. There are financial authorities like the NFA and CFTC that protect traders and trades, but there is no hierarchy. Trades are made on the basis of mutual trust! Similarly, there are no financial limits to hinder you. If you want to invest a million dollars on EUR/USD, you're free to do so. 

2) What Is A Pip?

Pip stands for percentage in point, and it is used to denote the smallest price value increment in Forex. A simple comparison would be - a packet of chips is priced at $2.50, in pips it will be denoted as 2.5000.  

3) Are Currencies Physically Bought?

Forex is a speculative trading market. You will have to employ a trading platform and put capital in your trading account, to begin with. Hereon, everything happens online. There is no physical purchase or transfer of currencies. With online trading in the game now, you can trade from anywhere in the world, and anytime - since Forex trading markets are open 24 hours! With a trading account and enough capital, you can get started easily. To make things easier, choose from the list of top Forex Brokers in South Africa to aid you in your quest! 

4) What Are The Most-Traded Currencies?

The major pairs are the ones most traded, and all of them have the USD as one currency:

1) EUR/USD

2) USD/JPY

3) GBP/USD

4) USD/CHF

These currency pairs make up for 85% of the overall liquidity seen in Forex markets. 

This should get any novice up and running in no time! All that's left is getting a demo platform, learning the essentials and moving to profitable trades. Sign up with one of the best Forex Trading brokers - WesternFX, and take to the skies! Assisted by our veteran traders, you'll be able to catch profitable trends swiftly and ride them to victory. Call us today to know more! 

How To Win Trades With Leverage In Forex

Anyone who has heard of Forex trading knows how profitable the field can get. Foreign exchange markets hold a value in trillions of dollars and this lures in several. However, what makes Forex trading truly alluring is the fact that traders can leverage their trades. 

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What Is Leverage?

Put simply, leverage is the money borrowed from your Forex broker, in order to have access to positions of higher value. When you work with leverage, you can increase the profit potential of your trades by a huge amount. Additionally, leverage allows you to trade without having to own a lot of money. The borrowed money amps up your existing capital and let you sees huge profits. 

With amounts as low as $100, you can trade positions valued at several thousand dollars. This means traders with low capital need not keep themselves from participating! Imagine the profit potential that can be reached with a hefty investment - sky's the limit. Leveraged trading is called trading on a margin. And this is varyingly beneficial depending on the type of trader you are!

Forex Markets' Liquidity:

Being incredibly liquid, Forex Trading markets give you an environment where there is never a shortage of opportunities. A 24-hour market ensures that no matter the time-zone you live in, you can participate in trades regardless. This also gives traders all the freedom they want to place exchanges. Be it short-term trades or longer ones, as a Forex player, you get to make the calls. 

A Double-Edged Sword:

While leverage is an incredible boon, it can turn into a bane just as quick. Overleveraging has led to huge losses on many occasions. Just as it increments your existing capital amount, it can empty it all the same. When you leverage a trade with borrowed money, that sum is essentially owed back to the broker. Hence, upon losing said leveraged trade, you will lose your capital, the borrowed money and be left incurring huge losses!

How To Minimize Losses In Forex: 

1) Leverage With Care: 

While a 200:1 margin might sound mouth-watering, you have to think of the worst-case first; will you be able to digest a loss incurred on such a huge trade? Leverage is a very advantageous element and can help you make big wins from many a trade. But always leverage with care, and only in necessary amounts.

2) Place Proper Stop Orders: 

Stop orders can help curb the losses a bad trade might bring in. Always place a precise stop to ensure your trades don't go out of hand! 

Get yourself the best of both leverage and leveraging guidance of Forex Trading Strategies experts at WesternFX! Assisted by our veterans, you will learn how to control this powerful aspect of Forex and use it to your advantage in no time. Call us today to know more!

The Best Forex Trading Approach For Beginners To Follow

Statistics showcase that more than 75% of the Forex traders fail early and don't see profits. These numbers have created an intimidating aura around the currency markets and have instilled the belief in many that Forex trading is based on luck! However, that's not true. In an aim to profit regardless of the many myths and wrong beliefs, several traders try to find a fool-proof technique to make money in Forex. There just isn't one. This impractical chase is nothing more than a big waste of time, keeping you from perfecting your approach and becoming successful at foreign exchange.

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While there are no easy shortcuts, there are several difficult paths you can go down on. The closest you can get to a fool-proof technique is just researching sharply and practicing. In Forex, trying to control the game will only lead to you losing money. Instead, consider Forex Trading markets to be a river and go with the flow! 

The start is what will be the most difficult. Beginners, intermediate traders and professionals - all participate in the same markets. The grounds are even but the scenario isn't. A professional trader has far more knowledge and experience than the others, which gives him a lot of leverage! However, as a beginner, all this need not be your concern. Your first priority should be to study all you can and practice what you learn.  

Once you know the basics, get yourself a good Forex Demo trading account from a reputed broker. Demo platforms are virtual spaces where you can practice trading, test out strategies and understand the working of the platform itself. All this will help you when you brave the torrents of a real-time trade. 

Check Forex demo trading off the list once you have a good grip over the working of a trade and trading platforms. Now you will have to perfect the art of analyzing markets. Two elementary approaches to learn are technical and fundamental analysis. The former employs tools and other platforms to study a currency's historic behavior, while the latter requires analysis of a country's economic, social and political factors. With these two approaches lighting the way, you will be off to a great start!   

   

There you have two of the top requirements - research and practice. Now all that's left to gain is an experience. Keep trading and you will keep improving. Some trades will end up badly and will teach you a lesson; some will bring home big profits and leave you satisfied. Ultimately, studying and practicing only takes you half the way, the other half has to be travelled yourself.

Get yourself the best Forex Brokers In South Africa for your currency trading adventures. Avail WesternFX's brokerage today, and take to the skies! Our experts will guide you through every step of the way, and ensure you come out on top. Call us now to know more.  

The Possibilities Weekend Day Trading Carries In Forex

Online Forex trading has grown to become one of the most beneficial advents of recent times. You can have a profitable career working from home as an online Forex trader. With the markets open 24x7 and several benefits like leverage and trading flexibility, a full-time career could work out incredibly in your favor!

Most traders trade around the clock and through the week, it all boils down to their interests, strategies and expectations from the markets. While the 5 weekdays do see a lot of bustle, the weekends can be lucrative too if approached right. 

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Why Trade On A Weekend?

What makes weekend trading an advantageous Forex trading strategy is that it allows you to analyze the markets in-depth. Traders may have jobs or college during the day and are hence unable to study the markets properly. With weekdays being the hub of business, you might find difficulty performing market analysis, something which is essential to trades. 

Weekend Forex trading doesn't explicitly imply trading only on the weekend. Many traders take these two days to study the markets and prepare for the week ahead. With the time at hand, you can improve your approach and equip yourself with a strategy that will hit all the right spots! 

What Are Some Good Weekend Trading Strategies?

Swing and position trading are two of the most effective Forex Trading Strategies under weekend trading. They are also incredibly profitable when compared to other approaches, and relaxed in their implementation since they are long-term. Unlike day trading or scalping, these two strategies are placed with a bigger picture in mind and a longer timeframe in consideration. 

Since you have the weekend for research and some leverage to up your trade positions, implementing these Forex trading strategies can prove incredibly lucrative. Perform some detailed analysis over the weekend and scour the markets for any profitable opportunities coming your way! With the right trade information in hand, reaping profits will be no challenge. 

Even day traders can benefit amply by working weekends to analyze the markets. Since your trades only have the window of a day, spending weekends analyzing the potential prospects will give you a tremendous head-start. 

Weekend Forex trading is profitable, just like every other approach, so long as it's implemented right. With analysis being as important as it is, traders still fail to find the time! Use the weekend right and get your strategies sharpened - profits will definitely be in your grasp.

Find a tailor-made weekend trading strategy for your venture at Forex Trading In South Africa today, call WesternFX now! Assisted by our seasoned veterans, you will be able to make stellar profits swiftly. Join hands with us today, and take to the skies.