Profitable and best Forex EA is quite challenging to find. It is because the majority of the EA may provide you profits for a few days and would lose your account after some days. However, if you finally found the best and profitable forex EA in the market, then you will surely make money out of your trading transactions.
In this article, you will be guided on how to make money out of your trading transactions with the best forex EA. Learn all techniques and strategies for you to successfully earn more profits and be progressive in this field of industry.
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If you want to know the effective procedures in making money trading with your chosen forex EA, then take a glimpse at the following guide:
Step 1: Select the best strategy for your forex trading — It is crucial to select a forex trading strategy that aligns with your financial objectives. If you are a newbie in this trading transaction, it would be advisable to stick to a trading strategy that focuses on principal forex pairs.
Step 2: Create an account for forex trading — The second thing you must do is create or open an account for trading transactions with a top-rated broker in forex. There are lots of top brokers which you may opt for good. Some of these top-rated brokers are eToro, Libertex, Blueberry Market, and capital.com. These platforms are perfect for all beginners in forex trading. It also offers various pairs at low fees.
Step 3: Make a deposit into your account — It’s a must to deposit some funds into your trading account for you to make Forex money online. In fact, most of the platforms that are available online accept different payment methods, which include e-wallets, debit/credit cards, and bank transfers.
Step 4: Start trading Forex — Since you already deposit an amount into your trading account, you can now start your first online Forex trade. You may then search for a currency pair that you wish to trade and select from a sell or buy order, which depends on your speculation and decisions pertaining to the rise and fall of the exchange rates.
As you are about to place such a forex order, it is important to have comprehensive knowledge and understanding of the functions and proper procedures of trading sectors. If you wish to learn more about these things, then learning the basics in forex is imperative.
Forex Comes with Trading in Currency Pairs
In Forex trading, you’re speculating the forthcoming value of the currency pairs. For instance, you are trading USD/EUR, which is prominent trading pair in the market. This only means that you’re trading exchange rates between the US dollar against the euro.
If the rate of exchange is 1.1909, then a buy order indicates that you think that this value will spike in the next few days. A sell order indicates that you think the pair will have a lower value in the next few days. If you have correctly speculated it, then you will surely close the trade with more profits. In the given an example, the US dollar is the currency base since it’s situated on the left side. The euro is, therefore, a quote currency. Meaning to say, for every 1 US dollar, the market would be willing to pay around 1.1909 euro.
There are various pairs that are available for you to trade in the market. Although, what you have got/access depends on the chosen broker. With this, pairs are generally split into 3 categories such as exotics, minors, and majors. These three categories are well explained below:
- Exotics — This type of pair includes 1 strong currency such as the euro and US dollars. It also contains fewer liquid currencies — oftentimes from the emerging market. Euro might include Mexican peso, Russian ruble, and Turkish lira. If you’re a newbie in the field of forex trading, then it’s advisable to prevent exotic pairs since these are tremendously volatile. It also spreads much wider compared to minors and majors.
- Minors — This type is also called “cross pairs.” Minors are composed of 2 strong currencies; however, the US dollar is not one. These minor pairs benefit from a huge liquidity level but not to the same extent as the majors. The most prominent traded pairs in the minor type may include GBP/JPY, EUR/CHF, and EUR/GBP.
- Majors — This type of pair is always composed of the US dollar plus another strong type of currency. It may include GBP/USD (British pound), USD/CAD (Canadian dollar), and USD/JPY (Japanese yen). Interestingly, these major pairs would benefit from the most trading actions. That’s why they offer huge liquidity levels or tight spreads. With that said, majors are perfect to all beginners in the world of Forex trading.
The term — spreads — is being mentioned earlier, especially in making money online. Those who are not aware of this terminology pertain to the discrepancy between the ask or sell price and the bid or buy price of a pair that you’re trading. The gap in this pricing is the determinant of how the forex trading online platform makes money.
After having a clearer view or perspective regarding forex trading pairs, the next thing that you must learn is about buy-sell orders. As what being mentioned in the discussions above, this tells whether you speculate or think that the rate of exchange of pairs will fall or rise.
For better understanding, it is indeed important to bear these things in mind:
⎫ A sell order should be placed once you think that the rate of exchange tends to fall.
⎫ A buy order must be placed once you think that the rate of exchange tends to rise.
For you to close your trading, it is necessary to place such opposing order. For instance, if you have opened a trade with a sell order, you should close your trade with a buy order.
With these things in mind, you will now better understand how to make money trading with your chosen Forex EA. Just be knowledgeable enough on this Forex online trading so that you’ll end up having more profits in your future days.