Posted by forex at 3:50 AM
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1. Select an online broker. There are many to choose from, but the best type of broker for Forex trading is an electronic communications network, non-dealing desk (ECN NDD) broker. The advantages of this type of broker start with real-time trading -- the ECN part -- with all interbank market participants, which ensures the best prices available. Also, the broker does not trade against its customers -- the NDD part -- and only profits from trading commissions, not from winning at the trader's expense. Finally, ECN brokers display a depth-of-market window that shows all trades stacked up at different prices ready to execute -- a very important tool for placing precise trades.
2. Adopt a trading strategy. The output of a trading strategy is a set of signals to open and close Forex positions. To generate these signals, traders can use technical indicators that base predictions on future prices using prior price data. There are many strategies available using tools, such as candlestick charts, moving averages and support/resistance lines (see Resources).
3. Automate your trading. Your strategy will generate your trading signals. You can then execute trades using Forex trading robot software that translates signals into broker orders. There are many robots with different operational capabilities, but almost all provide for automatic position entry and exit. Select and buy one after researching them online, and follow the installation instructions shipped with the software. Positions are exited when a trader's preselected trading stops are hit: a take-profit stop closes out a position at a profit, and a stop-loss closes out a losing position. Robot software enforces trading discipline by locking in profits and holding losses to a tolerable amount.