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.
When you trade on the stock market, you ideally have to study the financial statements of the companies involved. You have to know how much profit they made during the last year and how much profit they are expected to make during the next year. You should also be aware of little known 'inside' information that can have a dramatic effect on the share price of a particular company.
With forex it's different - at least theoretically. The information about factors influencing the price movements of a particular currency is readily available to everyone, especially for the major currencies. So all you have to do is study that information and make money, right?
In real life, however, there are a lot of factors influencing currency movements. There are hundreds of currencies each having an effect on each other. To make an informed trading decision, you have to study all these factors and then try to determine which way the market is going to move for a particular currency. Unless you are a full-time trader with access to sophisticated data tracking software, this is a difficult task.
This situation led to the development of software that can to a large extent automate the trading process. It will study all market movements and its effect on technical indicators, like Bollinger bands, analyze that information and then produce a trading signal whether you should sell or buy a specific currency.
They are not all equal though. The expensive ones will also produce a set of charts and the results of the technical analysis to explain to you how it arrived at the recommendation. This way you will get valuable insight into the way decisions should be taken based on technical data. The cheaper software packages will simply produce a recommendation based on the same results without the in-depth analysis. The recommendation might be the same as that of more expensive software, but you will not get the same insight into how it arrived at its decision.
Investors and traders who base their trading decisions on fundamental analysis will not doubt tell you that the basic principle underlying these trading recommendations is flawed: trading decisions should be made based on 'fundamental' or 'real' factors, such as inflation, interest rates and the trade balance. Many will no doubt point out the effect sudden political instability can have on the value of a currency.
Sworn supporters of technical analysis will of course explain that there's no need to worry. The indicators will pick up when the currency reacts to any such incident and the forex trading software will in turn respond with a buy or sell signal for that currency. - 23210
When you trade on the stock market, you ideally have to study the financial statements of the companies involved. You have to know how much profit they made during the last year and how much profit they are expected to make during the next year. You should also be aware of little known 'inside' information that can have a dramatic effect on the share price of a particular company.
With forex it's different - at least theoretically. The information about factors influencing the price movements of a particular currency is readily available to everyone, especially for the major currencies. So all you have to do is study that information and make money, right?
In real life, however, there are a lot of factors influencing currency movements. There are hundreds of currencies each having an effect on each other. To make an informed trading decision, you have to study all these factors and then try to determine which way the market is going to move for a particular currency. Unless you are a full-time trader with access to sophisticated data tracking software, this is a difficult task.
This situation led to the development of software that can to a large extent automate the trading process. It will study all market movements and its effect on technical indicators, like Bollinger bands, analyze that information and then produce a trading signal whether you should sell or buy a specific currency.
They are not all equal though. The expensive ones will also produce a set of charts and the results of the technical analysis to explain to you how it arrived at the recommendation. This way you will get valuable insight into the way decisions should be taken based on technical data. The cheaper software packages will simply produce a recommendation based on the same results without the in-depth analysis. The recommendation might be the same as that of more expensive software, but you will not get the same insight into how it arrived at its decision.
Investors and traders who base their trading decisions on fundamental analysis will not doubt tell you that the basic principle underlying these trading recommendations is flawed: trading decisions should be made based on 'fundamental' or 'real' factors, such as inflation, interest rates and the trade balance. Many will no doubt point out the effect sudden political instability can have on the value of a currency.
Sworn supporters of technical analysis will of course explain that there's no need to worry. The indicators will pick up when the currency reacts to any such incident and the forex trading software will in turn respond with a buy or sell signal for that currency. - 23210
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 @ 5:20 AM
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