Forex System Trading
Forex trading systems can be either manual or automated. A manual system involves sitting at the computer screen, looking for signals and interpreting whether to buy or sell. In an automated trading system, the trader "teaches" the software what signals to look for and how to interpret them. It is thought that automated trading removes the emotional and psychological components of trading that often lead to bad judgment.
Both automated and manual day trading systems and signals are often available for purchase. It is important to note that there is no such thing as the "holy grail" of trading systems. If the system was a perfect money maker, the seller would not want to share it. This is why large financial firms keep their "black box" trading programs under lock and key.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Forex Trading Robot — A computer program based on a set of forex trading signals that helps determine whether to buy or sell a currency pair at any one time. Forex robots are designed to remove the psychological element of trading, which can be detrimental. Automated… … Investment dictionary
Forex Signal System — A set of analyses that a forex trader uses to determine whether to buy or sell a currency pair at any given time. Forex signal systems could be based on technical analysis charting tools or news based events. The day trader s currency trading… … Investment dictionary
Forex Trading Strategy — A set of analyses that a forex day trader uses to determine whether to buy or sell a currency pair at any given time. Forex trading strategies can be based on technical analysis charting tools or fundamental, news based events. The day trader s… … Investment dictionary
Forex Scalping — A trading strategy used by forex traders to buy a currency pair and then to hold it for a short period of time in an attempt to make a profit. A forex scalper looks to make a large number of trades and earn a small profit each time. Forex… … Investment dictionary
Forex Training — A form of instruction or mentorship that provides information on forex trading tactics, methods and successful practices. Forex training acts as a guide for the retail forex trader, providing insight into successful strategies, signals and… … Investment dictionary
Forex Broker — Firms that provide currency traders with access to a trading platform that allows them to buy and sell foreign currencies. A currency trading broker, also known as a retail forex broker, or forex broker, handles a very small portion of the volume … Investment dictionary
Forex Analysis — An examination of the changes in the forex market that are used by a trader to determine whether to buy or sell a currency pair at any one time. Forex analysis could be technical in nature, using charting tools, or fundamental, using economic… … Investment dictionary
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Automated trading platform — An automated trading platform is used both by trading system publishers, and the investors who subscribe to them. Using it, traders can track marked to market performance using several different metrics for verifiability. [ Discovering trading… … Wikipedia