Automated Forex Trading

By Will Roby

Automated Forex trading appears to be the next big trend in currency exchange trading. Automated Forex system trading is just what it sounds like -- a system for making exchanges on the Forex market without your constant supervision. Automated Forex systems work in many different ways, from e-mail commands sent to your supporting broker to trading platforms that allow you to automate activity with the click of a mouse. Automated Trading is simply a way for a trader to securely trade your account for you.

The benefits of using automated Forex trading are many -- the most important are personaliztion and time saving. What is the fun of making money through currency exchange if you're glued to your computer all day, using a system or application you don't like?

Not only do automation systems offer you the ability to set up your own automated trade parameters, many of them give you several application or web based trading options. Some automated systems, like HyperOrder, offer you several well known trading platforms (TradeStation, MetaStock,etc) as well as the ability to collect trade orders from your email and send them directly to your broker. Set up your customized automation plan exactly how you want it. If you want further personalization, there are even so called "third party" automation systems that allow you to develop your own automated Forex trading system and apply it to any trading utility or website you choose. That makes the automated experience completely personal -- not only can you personalize your automated trading system, but you can choose the application you use to track your system. If you have an affinity for a particular Forex broker or utility -- you can use the GoForex third party automation system to trade on your own terms. Check it out at Go Forex.

Regardless of which automated Forex system you choose, you'll be saving yourself time. We've all known day traders or stock hounds who spent most of the workday tied to the monitor, analyzing trends and making trades. Since Forex never closes, Forex traders often get caught up in trading all night, soaking up valuable time. Using automated Forex trading, you can spend less time with your Forex account, and more time enjoying family and friends.

Automated Forex TradingHowever, automated trading of any kind can be dangerous. If you're a greedy trader, you could set up automated trades that are high-profit and therefore often high-risk. These trades will be executed by the application until you personally change the system -- take just a day or two off from closely monitoring your account, and you could miss a major trend that would have led to a better, or just safer, investment.

You should also be wary of certain automated Forex trading systems that offer "guarantees". The automated Forex market reminds me of the huge market for "gambling systems" instruction manuals and eBooks. There are more automated Forex systems for sale than you can shake a Japanese candlestick at (sorry, just a little Forex joke). Many of these systems advertise returns for all their customers, "guaranteeing" success. However, if there were a system that could guarantee a positive return, every broker and investor in the world would be using it. The fact is, there is no way to guarantee profit in the Forex market. These guarantees target the opposite of the "greedy" crowd -- people who can't stomach the idea of even the slightest risk will jump at the chance to earn a guaranteed profit.