There is a ton of forex software out there you have to choose from and then put them together to get the result you are looking for. It ranges from forex trading software (trading platforms) from all the different brokers, to all the automated forex software products commonly called Expert Advisors, EA’s, or Robots. In addition, there are many custom indicators you will hear about and want to down load, many of them are free and some will cost you.
Forex Charting software
This is usually referred to as the trading platforms that most brokers offer for free. You can use demo accounts to learn how to use the software. When you are ready, you can trade live accounts with real money on this same platform. This is a great feature and benefit to the new trader. A trader can also pay for some charting software which sometimes comes with a lot of bells and whistles but it is not necessary for the new trader.
The charting software comes with the data feed which is needed to get the current prices in order to place a trade. There will be a place to see your open trades and look at the account history to view all closed trades. Multiple accounts can be traded on one trading platform. You can either view multiple charts on the screen at the same time or just one large one on the screen.
Automated Forex Software
This is software that is programmed to make trades for you. You turn it on and it places trades and exits trades for you. This type of software works some of the time but not all of the time. When it works a trader can make some good money but when it doesn’t work your trading account can be wiped out. We have not heard of any of these types of software that work all by themselves. Some of them work with some human intervention and this requires that the trader actually knows how to trade. They can be great tools but they are not ATM machines.
Forex Signal Software
Forex signal software can also be referred to as custom indicators. These indicators are usually written by a third party and do not come with the free broker software. Many of them can be good but they need to be used with other indicators for more solid confirmations of a trade.
Pick indicators that compliment your style of trading and work together with others you like to use. A word of caution–don’t try and use too many indicators at one time. You will find yourself spending more time analyzing and not enough time trading and managing your trades.
Some traders use only one or two indicators. We feel you need no more than 5 indicators, some at the bottom of the charts and others on the charts. We use some indicators for entering and exiting the trade and other indicators to determine the momentum of the market that give signals as to when the market is going to take a rest or change directions.
Also, there is forex signal software that indicates when a trade has set up for a high probility entry into the market. With these types of signals it is wise to know how to trade so you can make good decisions.
Take your time and find what works best for you. It is not a race. One indicator will work well for one person while someone else might get poor results using the same indicator and set of signals.
All these types of forex software can only do so much to help determine when to enter and exit trades. But once you are in a trade, good money management skills is what will make the money for you.