How Technology Changes Forex Trading

In this article I want to talk about Forex trading in the 21st century. Specifically, I want to discuss how technology is changing the way in which people trade in the currency market and to speculate about where the market is going with the current trends.

In the past, forex trading was mostly done in order to have foreign currency for travel and commerce. Only later did it evolve into an actual trading arena where people trade different currencies as they would any other commodity or stock or bond.

Naturally, before the Internet was formed, it was very difficult for small time traders to take an active part in the market. They simply had no way of being adequately updated as to changing market prices, trends, shifts, and news. They could trade, but the positions they held were intended to be held for longer periods of time.

With the internet, even private traders could now have all the information they needed at any given time and could trade in a large number of trades.

At first, this was done manually with the trader actively seeking out trades and placing them according to methods that he or she learned or devised themselves. This does require a lot of work, careful attention and execution, and a method that actually performs.

As the internet and technology improved, two other forms of trading appeared: automatic trading robots which did all the active trading actions on your behalf without you having to take any part in it, and signals providers who actually informed you on how and when to trade. With the internet, these signal providers could give you timely directions and get you involved in the market very quickly.

But using robots of signal providers meant that traders lost control over the decision making process. They did become able to trade without any hassle but they took a less active part in the trading process itself. This was the price of technology and how it changes the forex market.

Now, it appears that technology is going to create a new way to trade: a way in which regular traders will be able to create their own trading systems to trade for them automatically, private trading robots. All you need are the right tools to allow anyone to work in this way.

What this will give traders is control and a hassle free way to trade. However, it will also force them to learn how to trade in order to create profitable systems.