Can You Make Easy Money With Automated Forex Systems? Forx Starter's Guide

Forex trading, or the foreign currency exchange is currently the fastest and largest growing market on earth, averaging a whooping 2.5 trillion dollars daily! The exchange used to be exclusive to banks, large corporations, and the government, is now easily accessible to average joes like you and me. But you ask yourself...

How do I get in on this forex trading action and grab a piece of those trillions of dollars?

Its quite simple actually. Here are 5 steps to becoming a wealthy forex trader.

1. Begin to educate yourself about the forex market and currency trading.

Read as many books you can get your hands on, take a bunch of courses, learn strategies, and never stop practicing! Often, brokers will offer you demo accounts that use fake money in order to practice trading. Using specialized forex simulation software can make the process much easier.

2. Develop a profitable strategy.

This involves more study and research! Read ebooks, courses, books and using automated forex systems work best.

3. Don't risk money you are not prepared to lose and do not over-leverage your account!

This is one of the most common reasons(other then having an un-profitable trading strategy) that many new retail traders fail miserably is they over-leverage. Ideally, you should not leverage your account of more than ten times its value. This means is that you do not open positions worth more than its value.

4. Choose a reliable broker.

Unethical brokers will jack up your pricing and prevent profitable trades for you in order to fatten their wallet! This is not unusual behavior of a few dealers who have financial incentive for you to lose money when they are on the other side of your trades. You need to find one who is ethical and trustworthy, so do your research on all brokers before giving your money to them.

5. Automate your forex trading.

Automated trading systems are pre-programmed systems that automatically deploy trades on your account based on the rules of the strategy you(or the software) set. Automated trading systems can run on your desktop computer, with auto-trading platforms or as managed accounts. You will never miss a trading opportunity when using automated forex trading systems.

The forex market can eat you alive if your not careful. Its best to formulate a working strategy before investing any money. Don't go in blind! If you'd like more information on how forex trading robots can automatically build your wealth check out http://www.forextracer.com a great piece of software I personally recommend.

Another great forex trading robot is Forex Funnel:

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Rate/Quote
Rate is the price of one currency in terms of another.

Base Currency
The base currency is the first currency listed in any currency pair. Its value is determined against the counter currency's value.
(For example, if the following currency pair EUR/USD rate is 1.3525, then the EUR is the base currency and it is worth 1.3525 USD.)

Counter Currency
(Also known as Quote Currency, or Pip Currency)
The counter currency is the second currency in any currency pair. Its value is determined against the base currency's value.
(For example, in the following currency pair EUR/USD, the counter currency is USD.)

Bid Price
(Also known as Sell Price)
The bid price (left quote display) is the price at which traders can sell the base currency.
If you think that the EUR value will decrease then you can choose to sell it-you can sell EUR for USD at the price displayed in the bid quote.

Ask Price
(Also known as Buy price or Offer Price)
The ask price (right quote display) is the price at which traders can buy the base currency.
If you think that the EUR value will increase then you can choose to buy it-you can buy EUR for USD at the price displayed in the ask quote.

Spread
(Also known as Bid/Ask Spread or Market Spread)
The spread is the difference between the bid price and the ask price.

Pip
(Also known as Points)
Pip is the smallest price increment in the last digit in the rate (i.e., in the decimal place).

Day Trading
Day Trading refers to transactions that are opened and closed on the same trading day.

Transaction Cost
Transaction cost is the cost you will have when you make a trade.
It is calculated in the following manner: Transaction Cost = Ask Price - Bid Price.

Stop Loss
A trade type in which an open position is automatically closed at a specific price is referred to as a stop loss order. You can put in a stop loss order to minimize losses in case the market moves in ways opposite of those you expected.

* The Forex market gives you the opportunity to trade with borrowed capital. So here are some Terms You Wouldn't Want to Live Without (When Dealing with your Dealer, or Broker):

Margin & Leverage
The leverage is the loan you get from your dealer, which enables you to transact quickly and cheaply with a small amount of initial capital. Margin is the minimal cash deposit that you have to put up for the transaction. It covers possible future fx trading losses. (For example, leverage will allow you to buy or sell 10,000 USD with only 25 USD). While leverage enables you more buying power that can increase your potential profit, it can also increase your potential loss. It is highly recommended that you take the time to understand the risks involved while trading in leveraged products.

* eToro's Approach*: if the above example were to be applied, with eToro you could not lose more than your initial minimal trading amount of 25 USD.

* Last but (certainly) not least
Trading currencies on margin increases your buying power.
If you have 25 USD cash in a margin account whose leverage is 400:1, you could purchase up to 10,000 USD worth of currency because you only have to post 0.25% of the purchase price as collateral. This means that while initially you had 25 USD cash, you now have 10,000 USD worth of buying power.
However, while more buying power can increase your profits, it can also increase your losses. It is highly recommended that you take the time to understand the risks. Make sure to read the margin agreement, to understand how your margin account works, and to ask questions whenever you come across things that are unclear to you. "

From eToro