Forex is a very profitable business to get into, but the sad fact is that a vast majority of traders end up losing money. The reason is that they don't have a profitable strategy or the general know how on what is acceptable choices and unacceptable choices.

Should I trade a bunch of different currencies?

I'd rule against this until you become very good. The reason being is that currency behaves differently in different countries and in different economic positions. For example, you could be learning how to trade using the YEN and make some good money. But that doesn't mean other currency is going to behave like the YEN. Since this happens, you need to stick with what works, and branch out slowly to other currencies. This ensures you're making money and you're expanding.

I make a fair profit doing each of my trades, should I start doing lots of trades at once, so I make huge profits?

You can, if you're capable of giving the amount of attention you give to your single trades. Most people can't do a ton of trades at once because they just don't have the ability to go through all the information in a respectable amount of time. What I mean by respectable amount of time, is that by the time you know what the currency is going to do, it will have already past. So if the currency was at a peak and was about to fall, you wouldn't figure it out until you lost all your money.

Does automated forex software work?

Yes. I use Forex Killer and it is a valuable tool for me. It automatically handles all the data and graphs for the currencies. It's sole job is to discover profitable trends in the currency. It let's me know when to buy and when to sell and I make pretty nice profit with it.