Forex Robot guide
For those who prefer a lazier, more hands off approach to Forex trading, many newbies may come across the promises offered by the many Forex trading robots that are available on the market. It is important that you do not get drawn into these systems and that you only choose a Forex robot that is genuine and well researched. Whilst there is a possibility of earning a living with Forex, it is also very easy to make mistakes and lose everything.
As a newbie, Forex trading you may find that by using a Forex robot, you can cut out the learning that would usually go into trading with Forex. Of course, you still need to know about what all the terms mean, and how to set up the Forex robot, but you will not need to spend countless hours sitting in front of your computer screen, making sure that you get your timing just right so you don’t miss a profit margin, or so you don’t miss a low price to buy. These timings are often one of the biggest skills that you need to learn when trading with Forex and so if you have a robot to do that difficult bit for you, all you need to concentrate on is getting your numbers right.
Forex robot settings
When you have found a suitable Forex robot through recommendations and good reviews, then you need to know how to set it up properly. You will need to learn all about what the terms mean and what settings you ideally need to be setting.
You should decide on a percentage that you could afford to lose if the price of currency starts to fall. You will make a loss, but just how much is up to you. It is recommended that you only allow the price to drop by a couple of pips at the most. You also need to instruct the robot software about which point it should sell the currency to get you a decent profit.
Trade with Forex robot
If you want to trade online with the Forex market and you would like to use a Forex robot to help you to maximize on the benefit of being able to make currency trades 24 hours a day, then there are some vital terms that every Forex trader should know. We will call these terms the A to Z of Forex and you will probably need most of them when you are configuring your Forex robot software.
You should first be aware that when you are buying currency, there are two prices given. The bid price means the cost for you to buy from the Forex broker and the sell price is the amount that the broker sells the currency to you. The spread is the amount between the bid and sell price of the currency.
Remember that this is the way that the brokers profit from your trades. Candle chart The spread will change throughout the day and week to accommodate the risk that is involved at the time. When you are configuring your robot to buy you, will need to have an idea of the spread so you can plan accordingly.
The lot size is the amount of the currency pair that you will be buying. Be careful because this does not mean 1 unit but could mean up to thousands of dollars per lot depending on the value of the currency pair. The lot should be set up carefully with your Forex robot to ensure that you do not make the mistake of investing everything at once.
The take profit level is just the price that the stock will reach in a favorable position before you want the Forex robot to close the deal. The sell limit or stop loss is the opposite of the take profit level. This ensures that you do not lose too much money as the currency price starts to dip unfavorably below the buy price. Be careful that the Forex robot has these values set to make the most of your trades.