Ways To Make Money Trading Currency

There are a number of different ways you can make money trading currency. Forex trading can be done from manual trading to fully automated trading depending on your own preference and convenience. As some of you may not have any idea about how you can fully automate your trading, I am going to share with you some stuff that I know in today’s post.

First of all, let us talk about the most common ways of trading that is practiced by majority of the successful traders and it is “Manual Trading”. I will explain to you why majority of successful traders are using manual trading in the later part of this post.

So let us begin

Manual Currency Trading

In this type of trading, you have to be there personally to watch the chart and look out for characteristics in the chart patterns and indicators before you trigger the trading button to either buy or sell a position.

In manual trading, you have to do pre trade analysis so that you have a grasp of the market movement before you start to trigger your trades. Below are the pros and cons of manual trading.

Pros

• You get to be totally in charge of the buying or selling of a currency pair based on your judgement and trading plan.

• You get to stay out of a risky trade when the stop loss is too much.

• You get to exit a position earlier when it is wrong as you are there to monitor the price movement thus reducing your losses.

• You get to exit a profitable position before the price reverse and eats up all your profit when you see some patterns that you are sure is a reversal.

• You get to add more positions to a winning trade which will increase your earnings as you are there to monitor the chart.

Cons

• You have to spend time and effort to look at the charts.

• There is a chance of you getting too emotional from a losing trade that trigger more losses from your emotional decision.

• There is a chance for you to cut short your winning due to your fear of the market eating up your profit.

Automatic Currency Trading

This is a method of currency trading with the help of a software known as metatrader or simply purchasing some forex robots made by others. MetaTrader is a program that is made by the MetaQuotes Company in 2002. Using this software, you can tell the program to help you enter trades when they see a specific setup in your indicators and chart. In fact, it can also help you to exit your trade based on your specification. With your input into the software, it will help you to monitor the chart and then trade on your behalf whole day round the clock without you having to be there to monitor. This is a completely hands off method of trading.

However, in order to be able to do this automatic trading, you must look for a broker that is able to support this software as not all trading platform supports this software. Below are the pros and cons of using automatic forex trading.

Pros

• You can reduce losses due to your emotional decision as the software trigger your trade based entirely on setups and no emotion is involved.

• You can make money without having to stay at your computer 24 hours a day.

• You have more trading opportunity as the software will be able to monitor the chart for you all around the clock.

Cons

• As the software do not have its own judgement, it will not be able to help you reduce your loss by exiting your position earlier when there is some indication that you are wrong.

• If you are using a forex robot, there will be a time when the robot may become outdated and you will find your trade losing more trades than winning.

• There are some forex brokers who do not allow robots to be used.

The reason why most successful traders prefer manual trading compared to automatic trading lies in the profits. Most forex robots can only make you small profit as they are more effective in forex scalping trades.

Robot robots tend to work less effective for longer period trading and thus it is pretty hard for you to make enough money to replace your day job salary. However, if you are looking for some extra pocket money of a few hundred, it is something you can consider.

There are a lot of people who entirely rely on automatic trading and forget about gaining knowledge about trading. It is impossible for you to trade for a living using the help of a robot and if it is possible, everyone will quit their job and purchase the best forex robot to help them make money.

Personally, I do not use any automatic trading software but I have some recommendation from my trading buddies and below are what they recommend.

• Ivybot

• Forex Megadriod