Submitted by: Paul Hamilton

Essentially one can trade in the Forex market in four different ways. It can be done manually by the trader himself, using a managed account provided by the brokerage firm, using Forex forecast signals or with an automatic Forex trading system. A relatively new trading approach in Forex trading, an automatic Forex trading system provides a trader the benefit of automation as well precision execution of trades. By using an automatic Forex trading system, a trader would be able to take the emotional aspect of trading out of the picture. One of the biggest hurdles that most new Forex traders faced is the control of their emotions. Even with the best trading strategy, a Forex trader will encounter problems if he cannot maintain his composure while trading in a highly charged atmosphere like the Forex market.

In a highly charged trading atmosphere like the Forex market, it is easy for one to be overwhelmed by emotions like fear or greed and hence make the wrong trading decision. A trader can be really tempted to enter the market too early due to greed or close his position too early due to fear and straying away from his original trading strategy.

With an automatic Forex trading system, a trader can avoid falling into such kind of situations by isolating the emotional aspect of trading from the actual trading process. In addition to the above advantage of separating a trader s emotions from his trading, a trader is also able to realise more profitable trading opportunities. As the Forex market is a 24 hours market with no time constrains in trading hours, a trader would be able to optimise the market opportunities by adopting an automated trading system even when he is sleeping. Trades can be made with preprogrammed entry and exit points using an automated system.

Also by using an automatic Forex trading system, a trader is also able to select whatever price patterns, moving averages, market trends or support & resistance levels as rules for his automated system to follow. The automatic Forex trading system will then create algorithms rules that will automatically execute what the trader specify as his trading requirements.

Depending on the brokerage firms that a trader opens his account with, automatic Forex trading system are available free of charge or at a subscription. Basically they come in two versions, a desktop based version or a web based version. For desktop system, data concerning your trading activities are stored locally while for web based system, your data are parked at the service provider servers. Generally most traders prefer web based system as the long term cost of ownership is lower and their data are more secured.

Automatic Forex trading system hold a lot of potential for new Forex traders who are unsure on how to go about trading properly in the Forex market. But although automatic Forex trading systems have none of the physical and emotional limitations that a person has, then again, it cannot be denied that a human mind is always better at deciphering and interpreting signals than a computer algorithm. The best approach to take regarding automatic Forex trading system is to blend a combination of tasks between a trader s manual interaction and the automatic Forex trading system.

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