Many forex investors are increasingly looking to forex robots for signals and automation purposes. In spite of its many functionalities, you must decide for yourself if you need one and how best to utilise it.
What is it?
Forex robots are forex trading software that helps the trader automate trading decisions based on preconfigured algorithms. They generate signals and can even enter and manage the trades.
Why do traders use it?
Traders with simple, straight-forward strategies can simply program it in the forex robot for it to trade automatically, even 24-hours, as long as the market stays open. There is no need for human intervention and the excess time can be better used in other forms of forex analysis and research.
…Continue reading…
The more you trade in forex, do you know what kind of trader you are? There are mainly 4 types of traders – scalper, day trader, swing trader, and position trader. Here, we will explore a greatly popular style called scalping.
What is it?
Scalping is a technique that requires the trader to enter and exit the positions very quickly, generally within 3-5 minutes and as quickly as 1 minute.
Scalping has gained in popularity because this style is being seen as a safer way to trade forex. Because the positions are only open for a very short period of time, the exposure to market movements is much less than the conventional trading methods.
How does it work?
This technique works by riding on the short periods of volatility. Since the market risk is low, it also means the returns are low too. Scalpers trade very frequently to make up for the small returns per trade. They trade potential high returns from long trend runs for smaller but more frequent gains. For example, if a scalper buys 100,000 units of GBP/USD which gains 3 pips before the position is quickly closed, the gain is only $30.
…Continue reading…
