How Forex Trading software can impact your long-term profitability
Why trade the Forex market using software? Can it help? How will it impact your long-term profitability? All of these questions are reasonable questions for the Forex trader to ask. The answer to the first question is simple; to make trading easier to manage and therefore makes you more profitable.
Everything you do in Forex should be governed by this concept.
One of the reasons the United States catapulted itself into predominance at the turn of the 20th century was its ability to develop products that made people’s lives more productive. When daily tasks become more efficient we have more time to be productive. Take for example the automobile. People in the first few years of that century rode in either a wagon pulled by horses or a Model T. They took the Model T when the trip was longer perhaps 30 or 60 miles, but even a 60 mile trip was fraught with flat tires and overheated engines making it nearly a half-a-day affair. Today we jump in our cars and drive that far to work in an hour, sometimes less. The automobile has made out lives more efficient and therefore more productive.
The next question is, can it help? Can software help the Forex trader?
In Forex, once we learn the fundamentals of pips, trade entry, and all the other basic terminology we can begin to formulate how we are going to trade. This in itself will take some major consideration as there are so many ways to approach trading depending on the philosophical direction one takes. But once that direction has been taken, software can be researched that might be of advantage. For example, if you traded negative and positive reversals, a signal discovered by Andrew Cardwell a student of Welles Wilder the creator of the RSI (Relative Strength Index), you could use a software product called The RSI Paint Indicator. This indicator takes the RSI indicator and locates these signals and then alerts the trader when they form. Further, this kind of software could be used to actually enter a trade with both a stop loss and take profit. There are thousands of software programs available; some good, some not so good. Your trading philosophy will govern the use of software.
Third, how will it affect your long-term profitability?
Software will not be the determinate of whether you are a profitable trader. Your skill and adeptness to recognize trading opportunities will determine how well you trade and what kind of profits you will make over a long period of time. Software can be used to create efficiencies that make decision-making easier and more profitable. Software can be used to make better entries that lower risk and improve reward. All of this can benefit the Forex trader who has taken the time to educate themselves to trading and continually adapts to changing situations in the Forex market. It is an ever changing dynamic global market and long-term profitability can be improved if the right software is selected with keen insight and discernment.