A Forex Expert Advisor (also know by other names such as Forex Trading Robot, EA, MT4 EA, Automated Forex Trading Software) is a mechanical trading system written in the MQL-4 programming language and designed to automate trading activities on the MetaTrader4 platform.
Hundreds of brokers and system developers are enticing new traders into trading the Forex market with claims of double digit or higher returns in a short space of time.
The reality is 95% of new traders lose their trading bank in the first couple of months. How can you ensure that you are part of the successful 5%?
Here are 10 tips that can help you achieve long-term success when first starting off as a Forex trader.
1) The Forex Market. You can’t hope to trade a market that you do not understand. Don’t listen to all the hype that “newbies” can buy an automatic system and be successful immediately. The Forex is a very exciting market but you need to read and learn about this market before trying to trade it.
2) Purchase a commercially available Expert Advisor or automatic trading system which offers a user support forum. There are systems that you can get for free, but if you are just starting out you should consider purchasing a system that offers good customer support and offers a users forum so you can read about the problems and the solutions that fellow traders are having.
3) Choose the system before you choose the broker. Different Expert Advisors will trade on different currency pairs and different brokers offer different spreads. Once you know what your system will be trading you can then shop around for the best broker.
4) Choose a reputable broker who offers the MetaTrader4 trading platform free. There a literally hundreds of brokers now offering MT4, but some are more reputable than others. Only choose a regulated broker.
5) Understand the difference between fixed and variable spreads: Some brokers offer fixed spreads and are usually market makers. Other types of brokers, like ECN brokers, offer variable spreads. Make sure you understand the difference.
6) Micro lots are a good way to experiment with a new system. Brokers offer different lot sizes, there are standard mini and micro lots. Make sure you know the difference before you trade and choose only a micro lot account if you have a small trading bank.
7) Open a demo account. Most if not all brokers will offer a demo account which you can practice with before risking real money. If you are trading a new system or are new to trading it is a good idea to experiment on a demo account first.
8) Learn how to use MetaTrader 4. Make an effort to fully familiarize yourself with the trading platform so that you can set your Expert Advisor up correctly and don’t make silly setting errors.
9) Start trading with small risk. Ensure you understand the value of each pip for the currency pair(s) you will trade for your new system. There are pip calculators available on the Internet that will provide this information quickly for you.
10) Never get greedy. Never raise your risk above the recommended levels for the system you are trading
For E-book on 40 TOP FOREX TRADING STRATEGIES. Email: omoluabii2@yahoo.com
Oluwaseun, 40 TOP FOREX TRADING STRATEGIES. I have an ebook on this. I can BOOST to you that, you will make more that 1000pips weekly if properly used. omoluabii2@yahoo.com
www.investment-arena.blogspot.com
Thursday, May 14, 2009
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