For you to become successful at Forex trading, you will need to spend countless hours on learning the tricks of the trade, and also to keep an eye on the market, and currency movements.
Not many people have the kind of dedication and patience to go through all that. What they do is sign up for some automated Forex trading robots or systems. These kinds of systems are in high demand, because they make tall promises of helping people win trades more consistently, that too without having to keep an eye on the charts, or on the market conditions.
It is very difficult to resist the temptation of buying them, because the advertisements are very enticing. Now, who wouldn’t want to earn money with the autopilot system that will tell you what exactly to do?
The ads say that, all you have to do is install the software they provide, and the rest of your trading life will be as easy as a walk in the park.
What are these automated trading the robots’?
Generally, these automated programs are designed by experts. They are mostly sold as add-ons, which can be integrated with the trading platform, provided to you by your broker.
You won’t to have to strategise on anything, be it choosing the currency pairs, when to buy, or when to sell. These systems will have some risk management scripts that prevent the traders from taking high risks.
As we all know, emotions play a big role in enticing traders to make unnecessary mistakes. Companies that provide automated Forex trading systems generally advertise this plus point.
They guarantee to eliminate the trading mistakes that are caused you due to human or emotional errors. It is very difficult to say NO, when someone makes such promises.
Are they really worth it:
When you look at the advertisements selling such systems, they look thoroughly professional. Many companies also fake the track records, to show unreal success rates of their systems. These systems do not come cheap, but they do not guarantee you of winning all the trades.
Most of these systems will ask you to place long trades with long stop losses. Therefore, it might not be suitable for beginner traders, who generally work on mini accounts. Long trades could simply wipe out their account balance.
These systems are generally designed according to the market trends. What it means is that you could face big losses if the market moves against the trend. We all know that the market conditions are always volatile and are not predictable, which is why the efficiency of these automated systems can be suspected.
The intervention of the human mind will be definitely needed to assess the situation of changing markets. Therefore, you will need to be very careful when someone approaches you with a sales pitch for buying their automated systems.
Due diligence is required:
Well, there is no shortage for success. When it comes to trading, you cannot completely over-ride the importance of using your logic and strategies.
Unless and until they introduce some system with artificial intelligence integration, it would be in your best interests to rely more on the charts and your analysis skills. You could follow some good Forex blog, to keep in touch with reality of the market.