Trading on the Forex market.
The concept itself is very broad, and the reason is very simple - each person that trades has his own preferences, trading strategies, and style, trading manually, or use the best Forex robot for that.
Manual trading requires a lot of patience and knowledge. You can’t just open MT4 and start making money. You need to know Forex Market. You need to feel it. You need to know what can bring you money, and what can take all your earnings away. So if you’ve decided to trade manually, read the information below.
Before trading, you need to decide, what strategy fits you best. The amount of time that you intend to be trading, the timing of your entries, and the frequency of the trades – all this separates trading styles.
Just to be clear – there are no strict rules. Timeframes could be flexible, but this article will provide you information about typical timeframes that traders are using. So let’s just dive right in.
If you have a full-time job and a busy lifestyle, but still want to trade – you may consider using this trading style. It’s called EOD (End of Day). The main purpose of it is to spend less time in front of the screen.
You have a job to do, right? You have a family to spend time with. Why would you spend too much time in front of your PC?
So what you actually do - you analyze Market on a daily (sometimes weekly or even monthly basis) and set pending orders. That’s all.
But in order to do that you need to know the market, you need to know how it works. Prediction, knowledge, and confidence – that’s what you need to use the EOD trading style.
Intraday traders – people who open and close trades within the same day. The whole point of this style is to make money now, immediately. There are a couple of forms of intraday trading – scalping, news trading, swing trading, and trend trading.
News trading – people who trade during or around the release of very important news. People see an opportunity to make more profit in this very short period of time – before or after specific news comes out, making money on the impact of the newly received information. Big, national wide announcements affect everything and especially Forex Market. But this type of trading is time-consuming and situational. You can’t really rely on it, as it’s considered too short-term trading.
Scalping – basically, you sit in front of the screen for the whole day and getting profit from small, minor changes in a stock’s price. People, who use scalping strategy believe, that it’s easier to make more profit by catching small changes in prices rather than catch large ones. This type of trading attracts a lot of new traders due to the higher potential for profits.
Trend trading. The main thing here is to identify a trend and make deals ONLY in the same direction as the trend, that you’ve chosen, you’re basically “following the trend”, which can be profitable for long-term positions.
When you are using Forex robots to trade instead of you – it simplifies everything. You can choose the most suitable strategy and do your thing – EA will trade while you are not in front of the computer. Robots can take in more data than a human, which increase productivity. Also, robots are not affected by greed or fear, they trade no matter what when people often get carried away by feelings and emotions and as a result – losing money.
What do you prefer? Trading manually or using Forex robots?