Have you heard about the automated Forex systems that turn newbie’s into full time traders? They’re the hottest thing to hit the trading world. You need to take a moment to learn about these.
Then we have forex broker s that take commissions for each trade. This is done because your order goes to a large market maker with whom your forex broker has a partnership. In this case you get the lowest spread available in the market.
Trading Fees. Some brokers charge for their trading platforms, however many do not. Again, double-check all fee schedules before passing your information. Escape Artist has a great article about the ways that online brokers get users to pay fees that may not be clear.
Just what currency pairs do you choose for your robot? Automated currency trading doesn’t mean you can just charge at any currency pair and gain profit from it. Forex robots are supported by a specific trading system that certainly really strong in a specific currency pair and weak at others. You have to know what currency pair it is. Look into my a review of Forex MegaDroid; it’s going to make the decision about currency pairs much easier.
The top 10 brokers have a common denominator: they don’t pander to their own emotions whenever they trade. For beginners, the biggest challenge is how to take out their emotions when they start trading. Indeed, it’s very hard not to adjust the amount of money you wager when the price keeps climbing. On the other end of the spectrum, it’s very difficult not to change your “stop loss” setting when the price continues to spiral down. In this case, you have to trust you instinct and experience in making the right decision. Some lessons about managing emotions can be found at this link.
Mini account only needs a small amount of money so you can trade various instrument with high leverage. For example, in order to trade 1 lot of EUR/USD with contract size $10,000, you only need $25 with leverage 1:400. With many brokers allow you to open a forex mini account with only $250 – for example – it means that you will have money to trade approximately 8 lots (Not 10 lots. It is because we must calculate the ‘auto cut’ system based on the trading rules. So let’s say it is approximately 8 lots).
What happened to the most revered adage of “past performance is no indication of future performance”? On what basis can you value the performance of a few randomly assembled computer programmes seeking patterns in the sea of currency price data over two months? How can this ever have any meaning in determining potential long term returns? Odds are even that the worst of these robots and the best of them over the first two months will have changed places in two years, or most likely, both will have converged to zero returns.