4 Different Forex Trading Methods – Pros And Cons
Forex trading right now is the hottest money making opportunity especially after the stock market crash of 2008 in which a lot of people got their fingers burned. Now, if you are new to forex trading, you might be wondering how to get started trading forex. In this article, I tell you aout the 4 different forex trading methods and the pros and cons. So, let’s get started:
1. Forex Signals
If you are new to forex trading and don’t have much time to learn how to trade forex than you can subscribe to a forex signal service. There are many forex signal services now. You get forex signals via emails as well as sms. With these forex signals, you don’t have to watch the market 24/5. Just enter buy or sell as recommended by the service. The trick lies in finding a good forex signal service. How to do that? First test the forex signals on your demo account. Only by testing a signal service on your demo account, you will be able to know how well the signals are.
Now, a new development has started. Some of the professional forex traders have started signal service in which they trade their own accounts with their own money. You get real live trading signals as these pro forex traders make their own trading decisions on their live account.
If that pro forex trader wins $1,000, you also win $1,000 and if that pro trader loses $1,000, you also lose it. You can copy their exact live trades with a Trade Copier that connects two or more MT4 accounts. Since, the pro trader is trading with his own real money, you don’t have to worry much about the quality of the signals. Naturally, the pro forex trader is going to be very careful in trading his real money.
Secondly, you don’t have to open your MT4 account all the time to enter the buy or sell signals, the Trade Copier will automatically do that for you. Of course, you need to find a good pro trader who is making a lot of money and is ready to share his live trading account with you through a Trade Copier.
2. Forex Robot
Forex Robot also make your trading automatic. In recent years, some good forex robots have been introduced in the market. There are traders who have made a fortune with forex robot trading. But the problem is that most of them were the developers of those robots.
You see, the basic problem with these robots is that they have to be continuously optimized with the changing market conditions. Something, most new traders are unable to do successfully as most of them don’t know much about forex trading.
In addition to that in order to be successful with a forex robot, you need to know a little bit of programming. Most new traders find it difficult. Forex Robots do work but for that you need to learn both forex trading as well as MQL4 programming. Something most new traders find difficult.
Most of the time, the vendors will try to portray as if a forex robot is the most easiest forex trading solution. You only install it on your MT4 platform and bam, it will start making money for you. Nothing is further from the truth. Market conditions keep on changing. A robot that maybe working may start losing money as soon as the market conditions change.
3. Managed Forex Accounts
Forex Managed Account are run by professional forex trader who will trade your money on your behave charging a fee something like 5-20%. You have the right to withdraw your money any time you want. In fact, you keep total control of your money.Managed forex accounts has been the preferred forex trading method for those who did not have the time to trade forex.
4. Manual Forex Trading
Yes, you can trade forex yourself. But for that you need to learn forex trading. This might take sometime. You will also need to practice a lot in order to improve your trading skills. However, learning forex trading is worth the effort. It is indeed the longterm solution and should be your ultimate goal.
In the end, if you are new to forex trading, I would recommend the Forex Signals through a Trade Copier. This is the best solution. The professional forex trader is not charging any fee from you. He is trading his own money. So, he is taking as much risk as you will by copying his live trades using a Trade Copier. You might have to pay for the forex signals though. Good Luck!