Trading Forex and Making Money Online

For the retail trader, i.e an individual rather than an institution, trading Forex has never been easier.

Since the turn of the Century, the popular MetaTrader 4 or MT4 platform has been the go to software for the purpose of a analysing stock charts, utilising indicators to predict trade direction and opening and closing trades with their preferred broker of choice. Account leverage is usually set with the Broker and so identifying your entry price, choosing lot size and specifying your stop loss and take profit levels are all that is needed to open a trade.

 

MetaTrader 4 Screenshot
A typical MT4 trading view

 

The issue that most potential retail traders face is the learning curve required to be able to trade successfully and consistently. It is therefore no surprise to learn that 90% of retail Forex traders will blow their accounts at some point, that is, lose all of the money initially deposited. The truth is that learning to read the markets accurately takes years of experience and practise that a lot of people just aren’t willing to invest.

This leads us onto to a product that is very popular within the retail industry, the Expert Advisor or the EA.

An EA is a piece of software that has been programmed with set technical parameters, usually based upon price action, resistance and support to name a few. An EA can be designed to mimic any type of trading style or pattern that a human can create, essentially removing that final element of human emotion out of the equation when placing trades. Once an EA is installed, it is constantly¬†analysing the data it is presented with and has the ability to open and close trades on your behalf without your intervention. A fully automated trading system that trades for you whilst you’re at work or asleep. A fully automated system that has the ability to make money and generate a passive income.

This means that any successful trader can in theory sell their strategy on the open market.

Needless to say, EAs are very popular and are widely used today. Of course, some EAs are better than others….

See our EA, MELISA, in action.

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