Thursday, December 18, 2008
What is a Forex Robot?
If you are asking what a Forex Robot is, you might also be asking what Forex is!
FOREX TRADING
Forex is short for Foreign Exchange. If you trade on the Forex Market you buy and sell different foreign currencies. The currencies are paired up with the most common being USD/EUR ie. US Dollar and Euro or USD/JPY ie. US Dollar and Japanese Yen.
There are many reasons why the Forex Market is so much bigger and better than Stocks and Shares Trading including:
24/7 Global Market - This global market never sleeps and can be traded by anyone, anywhere in the world at any time of night or day. There are no closing bells here.
No "per trade" commission - Instead of charging for each transaction, Brokers and Internet trading platforms make money from the spread between Buy and Sell prices not meaning you buy and sell more often
Robots - There are Forex Robots that can trade on your behalf day and night making sure you can benefit from changes in the market while you are away from the computer
Buy and Sell - Unlike stocks and shares where you only profit on the increase in price, with Forex trading you can either buy or sell each of the currencies in a ford car insurance meaning that you can profit if the ratio goes up or down.
FOREX ROBOTS
A Forex Robot is an automated trading assistant also known as:
- Expert Advisor (EA for short)
- Forex System
- Forex Software
The forex market changes several times per second and unless you sit in front of your computer screen 24 hours a day monitoring these changes you will not be able to take advantage of small incremental increases in profit. A Forex Robot does the monitoring for you by tracking movements and deciding when to buy and sell for you. It picks the entry point and then sets a "Take Profits" or "Stop Loss" point for each trade. It is also able to step in and reduce losses by buying in the opposite direction to the fall (see Buy and Sell above).
A forex robot is very easy to set up whether you have an existing MT4 Trading Platform or you are a complete Newbie with no Forex experience. There are several MT4 Trading Platforms out there most allow Demo accounts too. I use Alpari which is very simple to use and add Forex Robots or Expert Advisors to by just dragging and dropping into a graph.
The setup really is very easy, if I can do it anyone can:
- Download your chosen MT4 Trading Software to your PC
- Add the two Forex Robot files to the MT4 software
- Register the Forex Robot with the developers
- Open the Metatrader software and just drag and drop the Forex Robot onto the relevant Pair graph i.e. USD/JPY
- Complete the basic configuration instructions and add your investment deposit (this can be in the demo account or real money)
- Sit back and watch the Robot trade for you.
It really is addictive as you watch the graphs go up and down, and with the Alpari platform you get live updates on your profit and loss. As the price reaches the target set by Forex Robot it will buy or sell to complete the trade.
There are several www.ForexRobotReviews.comForex Robots on the market today, all with different levels of success and claims of the number of PIPs (the unit of profit) they have gained. The variety makes it difficult to decide which one is right for you, For independent reviews of the top performing ones visit www.ForexRobotReviews.comhttp://www.ForexRobotReviews.com
