First let’s start with a basic explanation about what it means to trade Forex or “FX”. Currency values fluctuate similar to the stock market, they go up and down. When you “trade” Forex you’re either buying or selling a currency pair, or symbol, like EURUSD. For example: if you buy EURUSD you are buying the Euro expecting it’s value to rise against the US dollar (USD). If the value of the Euro does increase over the Dollar you sell your Euro and make a profit. If you were to sell EURUSD you are expecting the value of the Euro to decrease of the US Dollar.
There are a few ways to trade Forex. You can manually trade Forex or you can use software that automates the Forex trading process which are called Expert Advisors (EA’s). Our preferred and recommended way to trade FX is by using Expert Advisors. There are many reasons we prefer Forex trading using automated Forex EA’s but the biggest is that it cuts the emotions out of trading. When I first started trading Forex I would stay up late trying to catch the big win. I was trading with my emotions, trying to hit it big, and that’s why we prefer and recommend Forex Expert Advisors. Forex Expert Advisors place trades based on complex algorithms, and since we all know machines don’t have any emotions..yet, your trades are opened and closed efficiently.
To use Expert Advisors you will need a Forex broker account, the EA, the MT5 terminal (the software that allows you to buy or sell Forex), and ideally a VPS to run your MT5 software on. That’s all we are getting into for today but we will continue soon!