Posted by forex at 3:43 AM
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1. Choose a forex online broker. The best type of forex broker is one that does not trade against its customers. This type is called a non-dealing desk (NDD) broker, and unlike a market-maker broker, has no vested interest in your failure. The preferred type of NDD broker is one that utilizes an electronic communications network (ECN) that provides real-time access to all participants in the forex interbank market. Only ECN brokers provide a depth of market window displaying all pending trades awaiting execution -- an important informational benefit that helps traders pinpoint entry and exit prices for their trades.
2. Develop a trading strategy. The purposes of a trading strategy are threefold: to monitor real-time prices and volumes of trading, updating technical indicators as new information arrives; to signal the best opportunities to enter and exit the market, usually based upon reaching a pre-determined price level; and to quickly execute trades when entry/exit signals are generated. Trading strategies typically use different technical indicators and tools, such as charts and moving averages.
3. Automate your trading strategy. A forex robot is computer software that automates the generation of trading signals and execution of trades. There are many robots from which to choose, so you will need to research the different offerings to find one with the features you require. A robot enforces trading decisions to establish and terminate forex positions with the cold discipline of a computer program, freeing you from the anguish brought on by greed and fear -- emotions that can destroy the most meticulous trading strategy.