There is an undeniable influx of people who are interested in Forex trading. Every inexperienced trader is determined to earn some easy money on the foreign exchange market, but this is only achievable with the right strategy and a reasonable amount of knowledge.

Earning money on Forex revolves around buying a specific currency when its price is low, and selling it after its value has grown. Understanding these concepts is enough to dip your toes in the water, but to achieve bigger success, you have to get familiar with more advanced terminology.

Drawdown is the difference between the current high point of money on your account and the next low point. This difference shows the capital you lost due to unfortunate trades. Losing money on trades is called a drawdown. If you decide to start trading with a $5000, but after some bad trades you end up with $4000, your account balance has suffered a $1000 drawdown. Although this experience is very unpleasant, it is a great way to get the feel of trading on Forex and learn from your mistakes.

Experiencing a drawdown allows you to evaluate the durability of your trading system. A big drawdown can put your trading system into jeopardy. Suffering a huge 50% drawdown puts you into serious danger. You'll have to be very smart about your next trades because you'll need a 100% return just to recover your account balance.

Big investors on Wall Street are very joyful with a 1/5 of profit a year. Experienced investors love to implement aggressive, high risk, high reward strategies, which often can result in a serious drawdown. When it happens, it is advised to utilize a safer, more consistent trading strategy, which will readjust your trading system. Less experienced traders get emotional and feel compelled to over-trade just to get even, which more than often results in even a bigger drawdown.

Over-trading and using too much leverage will most likely lead to a bad trade with serious consequences. Instead of making peace with their bad trade, traders get too confident and aggressive. To avoid even bigger drawdowns, cut your unreasonable trades and try to implement risk-management strategies to stabilize your situation. One good trade is definitely not the way to make a great career, but one disastrous trade will definitely cut it short.

Huge drawdowns can take a toll on your physical and mental health. Big trades have ruined the lives of many traders, so the best way to avoid such disasters is to utilize a trading plan, based on a specific algorithm and a high level of risk management, instead of relying on your emotions.

The best way to avoid big drawdowns is to implement a specific limit of any drawdown you’ll be willing to take. In the world of investors, it is called a stop-loss point. Utilizing automated trading systems with proper supervision will help you avoid trading decisions entirely based on your emotional state. Focus on your strategy, manage your risks, and know when to get out.

VPS or a virtual private server is a great tool to automate your trading on a foreign exchange market. Using this feature allows you to optimize, automate and execute trades much faster and far more efficiently. By connecting to a VPS, you get access to a remote computer working 24/7. Virtual private servers usually run on an operating system very similar to windows, which creates perfect working conditions for inexperienced users. By paying a monthly transfer fee, you will receive remote access to a server with a designated hard drive, RAM, ports with various configurations and an operating system.

The price of a VPS rent can vary depending on the location of a server and your desired specifications. But how do virtual private servers work and help us in our Forex trading?

As already mentioned before, by paying a transfer fee you will receive access to your personal server and a lot of freedom to use it. After that, you'll be able to remotely connect to a server from your personal computer, but operations will be processed on a virtual private server, not on your hardware.

In the past, Forex traders had to perform every operation manually. Following and executing every single trade is very tiring, time-consuming, and leaves a lot of space for human error, mainly based on emotions. Only well-educated traders with a deep knowledge of the foreign exchange market and economical news were the most successful. Great hardware at that time made trading easier, but constant monitoring was extremely stressful for the trader.

Recently, automation took the world by storm and affected almost every aspect of our lives. Even such a complicated sequence of events, which have to be performed to earn a profit on a foreign exchange market were greatly affected by algorithmic automation.

Automated forex trading is a win-win situation for many traders. Beginners who search for an easier way to earn money can invest enough time. A decent amount of knowledge and the right mindset will help inexperienced traders to use automation in their favor and earn some money. Traders with some experience praise the coming of automation. Algorithmic trading combined with knowledge accumulated throughout the years is the factors that guarantee an increase in profit and reduce the immense amount of stress and pressure.

To get the most out of automated forex trading, you have to use a trading platform on your computer. However, there are a few problems that can disrupt this automated process. Lack of access to a computer, power outage and loss of connection to the internet can damage your trades.

Automation is changing over the world as we know it. At first, it started to take away our most easily replaceable jobs. But in this day and age, algorithmic automation has reached a whole new level. Even such processes like trading in a foreign exchange market can be automated when the trader develops an algorithm used to execute his trading strategy. By utilizing algorithmic automation, experienced traders use trading software to increase the speed and efficiency of their trades. However, automated trading still has some flaws. Leaving your trades to a machine without any supervision is not always a good idea.

Your trading software will stop working due to a power outage or a loss of internet connection. To prevent these inconveniences and increase the efficiency of trades, traders started to use a virtual private server, also known as VPS. But what is Forex VPS hosting and how can you utilize it?

You can use your virtual private servers for many different things, but having access to a computer with high-speed internet and 24/7 accessibility is perfect for Forex trading. For a reasonable monthly fee, the VPS Forex trader allows you to transfer your trading software and keep your automated trading system constantly running.

We are excited to announce, that Dedicated servers and VPS from now are available in New York Equinix data center. New location will give you ultra low latency to brokers, like IC Markets, Pepperstone, Advanced Markets, AvaTrade, Oanda, FXOpen and others which are based in New York.