Selecting your first piece of software to start trading the currency markets can certainly be a mind boggling task. But, not to worry, I am here to give you a hand. If you are even reading this article I am sure you have already stated checking into the different software systems that are available. When I first began trading and was reading each of these products marketing material it really did not make my task any easier, but just more confusing because there are so many of them and each one does something a little different.
The fact of the matter is that none of them on there own is going to supply you with the same information the professional traders are able to accumulate with one piece of software. The reason for this is these systems for the most part sell for around one hundred dollars or so and the brokerage firms have spent millions of dollars refining their software.
What you are able to do with these products are purchase different combination of software that examine the market in distinctive fashions and simulate what the big boys are using. What is he talking about? Don't fret; I am going to explain it. First, what all of the commercial available software products do GREAT is collect currency data. Why, because it is easy to program a data feed into a piece of software. The hard part is the next two steps in the programming function.
After collecting the information the programmers next determine what facts are important to them and what is not and eliminate what they do not consider critical. The final stage is to make a decision or recommendation on the software's preprogrammed evaluation tools. Getting confused, I told you earlier not to agonize, it really is not that complicated once you understand what these software systems are actually trying to accomplish.
The vast majority of these systems can be one of the following; trend based, concentrate on day trading, signal orientated, function on a specific formula the professional trader has been profitable in the past with or a few other possibilities. But, none of them are comprehensive taking into account everything mentioned above. Why, because they cost a hundred dollars that's why. If you wanted one that did everything all of these systems do differently it would cost millions to program them and nobody would buy it..
That's great isn't it, you have told me all of that and none of the system can make me a profitable trader! That's not what I said, you just have to read a little further, because in FACT they can make you an extremely lucrative currency trader, you just need to know how to use them. The final piece of software in this puzzle is the human brain. The human brain, the greatest piece of software ever invented, of course that is until ET shows up, then it will come in second.
No more joking around, I am going to tell you how to do this. What you really want is the same system that the professional traders use, right? Of course, well too bad, they aren't any, but you can make your own. Above I told you the commercial systems were great at collecting data, which they are. One big step out of the way, after all, you could have never got that information nearly as quickly and as comprehensively as they do. Next, I told you they element figures not considered important by that particular program and they do that. One more thing you don't have to be concerned with. Third I told you they then use the data according to the preprogrammed function, which they do, which could be signals, trends, formulas or experience. The last and final step is to take that information and you MAKE the final decision on what to trade and when to trade.
That is exactly what the professional system do, with one big exception and that is they make recommendations or actually function as an automated trading systems using all of the above possibilities, where as your systems can only make one type of recommendation. But, if you combine those systems and make the FINAL decision yourself then you have the same software as the large brokerage firms have spent millions on.
Your going to need one more thing to make this work, don't start crying, it is FREE. What you require is a RSS feed from one of the major news agencies such as CNN or Reuters regarding business. If you don't know what a RSS feed is then do a search on Google and find out. Now you know everything that is essential and I am going to give you one example of how to use all of the above to make big money. Why only one example, I am not a training course, if you want more than one example sign up for one of them. Or figure it out for yourself using a demo account from a brokerage firm. If you don't know what a demo account is too bad, hit Google one more time.
Enough of the messing around, this is what you what to know. I am being serious now. Let's say you have a trend system and a signal system on your desk top along with the RSS feed and your brokerage trading platform all functioning at the same time. Now all of a sudden the signal system starts going crazy telling you something in the market is changing. What do you do? You check with your trend system and verify there is the trend line is changing. Now you have a signal and a trend telling you it is time to buy. What next, check the RSS feed and see if you can find the news coverage which you receive in real time just like the big boys and find out why the currency is moving. Once you have all three of the indicators functioning consecutively you can be pretty sure this is a HUGE buying opportunity. Please tell me exactly how many of those chances do you need a month to be a rich person, don't bother, I am going to tell you, NOT TOO MANY!
There it is, your own million dollar Forex Trading System for two or three hundred dollars. How you going to beat that? Your are not going too. Don't lose sleep over this if you did not understand everything I said above, once you get the systems and start playing with them you will understand. Also don't be concerned about being the first one in the market and the last one out, you never are. Do NOT start testing what I told you with a REAL money account, use a DEMO account. Use the DEMO account for at least a month until everything becomes very simple, it is not that hard to begin with and you are making good money with the demo and then go to the real money account. That's all for now, I hope this helps. Seriously, just read the above and follow it and you will be fine.
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