People have been trading in the forex market for a long time. However, venturing into this kind of business is expensive. It is expensive in the sense that it is time demanding and nerve-wracking business, which means very few can devote their time for trading, plus not everyone can bare dealing with emotions seeing their account value decreasing. Thanks to the forex trading apps tailored to aid all forex enthusiasts in their trading needs.
These trading apps indeed have transformed forex trading from manual analysis to automated systems. They are specialized software that helps generate buy or sell signals through mathematical algorithms. Basically, the aim of developing these apps was to help get rid of psychological biases and emotions when trading, hence making trading less stressful, easier, and more profitable. However, you need to be careful when choosing these apps because if you pick a wrong one, you will not enjoy these benefits. This article, therefore, seeks to give reasons to consider using the right trading application and tips you need to keep in mind while choosing the best one.
Benefits of using the right forex trading app
- Enjoy passive income: Strategy and timing are basic aspects when it comes to enjoying the right trading apps. They are set to compute trades, which means they can help generate passive income. The latest apps are sophisticated because they will control every process from analysis to entering a position. Alternatively, there are semi-automated apps that only offer a signal to act on, and this is great for individuals who need to monitor their trading.
- Novice friendly: You must be experienced enough to succeed in forex trading. However, it is not a must because working with the right trading app will offer you everything you need, including signals, news, and basic knowledge to keep you posted.
- Help you learn the ropes: Becoming a skilled forex trader requires time, especially if you have no one to hold your hand. Considering using trading apps helps you master many trading strategies, assess your trading history, master your strength, and better your weaknesses.
- Less prone to errors: Forex traders make many mistakes when finding an entry or exit point. For that reason, there is a need to consider investing in the right app that will help you out. The reason why trading apps are less prone to errors is that they are automated.
- More profitable: Many aspects make trading apps more reliable and profitable than a novice or average trader. One aspect is super-fast processing and analyzing data, which is more accurate. Secondly, trading apps are faster during execution- which is entering and exiting the market. This aspect ensures that currency pairs and tipping markets do not influence your trades. The good news is that they can trade 24/7, ensuring that every major price action is utilized consistently.
How to choose the best trading application
To enjoy the above benefits, you'll need to choose a trading app that makes a difference. If you consider hiring someone to develop one for you or buy an app already developed without research, you might lose your money. Here are some aspects you might consider to make the best decision.
- Your needs
To get started, you first need to comprehend your needs. It is crystal clear that many apps are tailored to make different opinions. Essentially, forex apps operate on various algorithms. For this reason, forex brokers first evaluate their requirements prior to looking for software that meets their specifications.
- Develop a list
Next, you need to create a list of apps that possess all the specifications you need. After listing them, you should weigh options and start eliminating one by one. You can eliminate based on what they offer.
It is important to consider the price of a trading app before investing in it. Usually, very few reliable trading apps are free. Other reliable options require some bucks, which is worth paying than waiting to see a total loss in your trading account. Essentially, the right app can detect even the smallest variable through their set algorithms, thereby giving you reliable signals. Thus, when investing in a trading app, focus on the price factor, and keep in mind that cheap is always expensive. Investing in free apps might not help raise even the slightest profit.
- Read reviews
You all can attest that reading reviews online is one of the most crucial things to landing a great product online. Thus, it is also a reliable way of finding a reliable app. The good thing is that many people have used the product either in real or on the demo account. If you check carefully, these people have given detailed information about their reliability and performance. However, don't allow yourself to be deceived by reviews as most companies advertise their products to attract customers. Luckily, there are many online forums where you can get information shared by experienced traders, and perhaps might be the right area to get answers you are looking for.
- Understand the statistics of the app
Also known as backtests, you need to ensure that a third or independent site has tested the app you consider. Doing this will help you avoid scammers or fraudulent purchases. The good thing about considering an app that has been tested is that some statistics are carried out to evaluate its performance. However, if you don't comprehend what statistics mean, then choosing the right trading app might be a daunting task. To help you understand some technical statistics terms, you should keep the following in mind.
- Profit factor
The profit factor is arguably the most critical factor when understanding the statistics of the trading app. It helps you know if the app will generate profit or loss. The good thing about the profit factor is that it indicates the relationship between risk and profit. Primarily, a profitable app that can risk all the bucks in your trading account is not appropriate. To help determine the profit factor, you can do it as follows.
Profit factor = total of winning traders or gross profit divided by losing trades or gross loss. Thus, if the value is less than one, you should avoid it as soon as possible. The right profit factor to consider must be above one.
- Expected payoff
This is the statistic that will guide you to know the average amount you can make on every trade. The statistics values depend on trading history. Thus, this aspect does not guarantee the results of the future; however, it is a beneficial indicator to consider when choosing a trading app. This is how you calculate the expected payoff:
Expected payoff = average profit made per every trade - the average loss made per every trade.
- Draw Down
A trading app that helps make a profit is not ideal if the risk involved is too high on every trade. Thus, it is a critical indicator of risk you must consider. The good thing about it is that it indicates the maximum percentage loss recorded. With this knowledge, it is easy to know the likelihood of a drop in your trading account if there is something wrong. To help analyze the drawdown, you should check the equity curve chart. If the curve is rising, it means that the software is profitable. In case the curve is agitated with many troughs and large peaks, then the software is very volatile. Usually, volatile software most probably possesses a high drawdown and poses a huge risk. Therefore, the right thing is filtering the app by choosing the charts that show a smooth equity curve. The three types of drawdown are; maximal drawdown, average drawdown, and drawdown recovery. The maximum drawdown indicates maximum average loss at your last high point. The average drawdown is used to compare different drawdown amounts. The drawdown recovery help evaluate the speed of the trading system.
Which forex trading application is ideal for beginners?
Undoubtedly, there are many best trading apps for your forex needs. Using the above insightful guide, it is effortlessly to find an easy to use, reliable and affordable application. To help you reduce the hustle of finding the best, we advise you to try using Forex Robot Abi... It is one of the best robots that has really transformed the lives of hundreds and thousands of established and novice forex traders. The good thing about Forex Robot Abi is that you join for free. Interestingly, it doesn't need any app as it can work in the browser (mobile phone or computer / laptop. So there is no need to install anything. Just use the mobile version. It works perfectly.
Choosing the right forex trading app is the initial step to succeeding as a trader. Thus, it is vital to invest your resources and time in making the right decision. If you follow this guide, you will unmistakably make a choice that you've been waiting for.