Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Auto Trading: A Beginner Guide to Automation in Forex

Currencies / Forex Trading Oct 21, 2020 - 02:00 PM GMT

By: Submissions

Currencies

Among the notable technological advancements in the forex ecosystem is auto trading. Not only does it replace manual trading but it is also making forex trading simpler and more profitable.

Before you decide whether or not to apply auto trading in forex you need its basics and where to use it.

What is auto trading? It the use of software to analyze markets as well as complete trades. It involves the application of artificial intelligence in forex trading.


Therefore, you automatically analyze the market, manage risks as well as in the open and close trades. Here’s is more explanation:

How to Apply Auto Trading

There are 3 main ways to apply auto trading in the forex. These include:

Market Analysis

Market analysis involves determining the possibility of prices falling or rising. There are 3 main types of market analysis. These are technical, fundamental, and sentimental analysis.

Technical analysis entails using past data to predict future changes in price. Fundamental analysis involves forecasting price change by tracking political, social, or economic changes. Sentimental analysis, on the other hand, entails following other investors’ opinions to forecast prices fall or rise.

Auto trading mainly applies to either technical or fundamental analysis. In technical analysis, the artificially intelligent software studies a variety of past charts.

It, then, predicts prices falling or rising in the future. In fundamental analysis, the software tracks economic and political factors that influence the change of currency prices.

An auto trader betters forex trading because it gives more accurate price predictions than human beings. Besides, the software captures slight changes in milliseconds. Therefore, you can make a well-informed and quicker decision.

Risk Management

Apart from raising your earnings, an auto trader widens your profit margins further through risk management.

First, it checks the number of open positions. Open positions are pending transactions such as the number of currency pairs awaiting selling. The more the open positions, the riskier your portfolio is.

To lower risks, an auto trader reduces the size of open positions. The software can monitor and undertake actions such as stop-loss orders.

Stop-loss entails instructing the software to manage price changes by halting trade when prices fall to a particular price. This is to avoid losses that would, otherwise, result when currency prices drop beyond a certain level.

A take-profit is the opposite of stop-loss. It involves monitoring prices as they rise above the buying price.

You aim to make the most out of the upward trajectory. To achieve this, you can set a maximum price level beyond which trading should stop. An auto trader makes the process better due to the utmost accuracy that the software induces in your trading.

After accurate analysis, the software determines the best level to initiate either a stop-loss or take-profit orders. For this reason, there is less possibility of making losses from the forex market.

Opening and Closing Trades

Apart from starting stop-loss or take profit orders, you can automatically start trades. For example, you can pick a currency pair to buy.

Without automation, it would be hectic since choosing a currency pair usually entails a careful analysis. Auto trading induces accuracy and speed in the opening and closing of trades.

Hence, you can complete thousands of trades per second. Here’s the more exciting part:

Automation gives you the freedom of widening your investment portfolio. Since the software does profitable trading on your behalf, you can, instead, use that time to follow other investment options like commodities, shares, and CFDs.

Conclusion

Auto trading has made it possible to earn a living through forex trading. Better yet, the software enables you to realize your wealth missions.

You no longer have to undertake the tedious market analysis. Neither should worry about managing risks or opening and closing trades. All you need is simple:

Apply auto trading and earn more from your forex investment.

By Russell Fenton

© 2020 Copyright Russell Fenton - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in