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If you are reading this you too are probably looking for that wining Forex strategy. You probably have already read tons of articles about this and I assure you there are millions of them out there. However let me tell you a tiny secret. The only wining Forex strategy out there is using an automated Forex trading program. You might ask why is that. Well let me explain.

As a human you have a number of problems when it comes to Forex. For example the market is open 24 hours a day however you cant sit in front of the screen for 24 hours now can you? However with a automated trading program you can trade around the clock, and ideal of all you can do it while you sleep.

All successful traders know that to be healthy to make money in Forex you must be healthy to track the market at all times. Fortunately for us automated trading systems were designed just for this. So by now you are thinking how do they work and how can I begin taking advantage of this technology.

With an automated program the bot will always keep a watchful eye on the market, monitoring market conditions and will also trade on your behalf. With the right programing, automated Forex program can manage all trading decisions for you. So if for example you begin loosing money on a trade, the Forex bot will automatically execute your stop loss order that was place in place and minimize your losses.

Another benefit of automation in Forex is the speed of execution. A personal can process stop loss, take profit and all other sorts of information all in a fraction of a second. This way you will always get in at the right time and you wont miss the boat. Another advantage of this is that you are guaranteed to be the first one in. As any good trader knows its always good to be in first and get out before everyone else does. This way you are always making money.

On top of all this, automated Forex programs have a variety of indicators they use to interpret the data for you. This way you will always be on the right side of the trade. However always make sure to test a automated Forex system in a demo statement before you begin to trade. Some systems might have glitches that need to be worked out before you begin live trading.

For those unfamiliar with the term, Forex (Foreign Exchange market), refers to an international exchange market where currencies are purchased and sold. The Foreign Exchange Market that we see this day began in the 1970’s, when free exchange rates and floating currencies were introduced.

In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.

Forex is a somewhat one-of-a-kind market for a number of reasons. Firstly, it is one of the few markets in which it can be stated with very few qualifications that it is free of external controls and that it can't be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day.

With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are healthy to open and close positions within a few seconds as there are always willing buyers and sellers.

Another somewhat one-of-a-kind characteristic of the Forex money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize big credit lines to seek massive short term gains. Interestingly, unlike blue-chip stocks, which are usually most captivating only to the long term investor, the combination of rather constant but small regular fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.

The two fundamental strategies in investing in Forex are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency’s future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price.

Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market thinks about all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself.

Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the current past, and predicts that the small fluctuations will generally continue just as they have before.

A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country’s economy depends on a number of quantifiable measurements such as its Central Bank’s interest rate, the national unemployment level, tax policy and the rate of inflation.

An investor can also expect that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants.

For just as in any stock market, the value of a currency is also based in massive part on perceptions of and anticipations about that currency, not solely on its reality.