If you are looking for a competitive edge in the forex marketplace, there is no doubt that you need some form of forex trading software to achieve significant profits. Many traders will claim that they do it all manually, but in today's extremely volatile marketplace you need to be guided by techniques and methods which simply deliver. Don't burn your capital and close your window of success in fx - let me show you how to know which forex trading software is right for you.
Step 1: What Is Your Level Of Experience?
If you are serious about success in the foreign exchange market you need to be honest with your level of experience. There are too many newbie traders who are scammed into buying the latest system, without taking the time to learn the basics of forex first. 9 times out of 10 they lose all their money, make a complaint which falls on deaf ears, then give up for good. If you are a newbie there are most certainly forex trading software options for you - but I would encourage you learn the basics first. My site is a great place to start - there is a free eBook you get by becoming a subscriber.
Step 2: How Much Capital Do You Have?
The amount of capital you have to invest in your forex trading software will to some degree determine your potential success. I would almost always advise a minimum starting point of $500 - or you are simply wasting your time. You need to be able to achieve a certain level of leverage so that you are able to weather any losses you will make along the way. Once you have decided on the capital you are willing to invest, it is much easier to choose the most appropriate forex software.
Step 3: What Currencies Can You Trade On?
Certain forex trading software and systems are based on trading specific currencies. In today's economic climate it is crucial to have some flexibility as the values of less popular currencies are becoming increasing volatile. This means there is greater risk if you choose to trade with them - but also massive profit potential. Before you purchase the system make sure you know the flexibility of the currencies you can trade upon.
Step 4: Forex Robot Or Forex Software?
There is so much confusion about the difference between forex trading software, forex robots and fx systems. They are all very similar things - but there are some distinct differences. For example a forex robot is basically pre-set rules that can be plugged into an existing trading platform. Forex software or systems are normally applications which can accurately predict market swings based on historical data and/or formulas for trading manually which have been worked out by an experienced trader. My advice on this one is to not be distracted by the hype, and base your choice solely on your level of experience, time you have to invest and timeframe you are looking to trade - short term vs longer term.
Choosing forex trading software has become increasingly difficult with so many different products on offer. Try not to get distracted by all the hype or popularity of a certain product - shop around and read reviews before you invest. You can make some serious profits, it's just important to think with your head and not with your heart.