Myths of Trading With Forex Robots

The Forex market is among the most unpredictable and frequently changing markets.  Although, this kind of trade is high risk, there are still a lot of people who are venturing into this kind of investment.  There are a lot of experts who give advice to every newcomer in Forex trading, such using Forex robots, automated trading, or changing trading strategy.  How can we separate the truth from the myths?

Let’s start with Forex robots.  What are the common myths about Forex robots and how can they be corrected?

Clever and complicated Forex robots offer the best service

Unfortunately, this is not always true.  The simplest systems are sometimes the ones that may work best. The good thing about simple systems is that they use just simple algorithms and requires fewer elements.

Aside from that, vendors of complicated systems claim that their programs were designed by brilliant people or people who had jobs in technologically advanced companies.  Yes, you do want brilliant people designing your software, but you also want to know What these people know about trading.

Trading can be improved by scientific and predictive systems

Yes, Forex trading and automated trading systems use mathematical calculations to understand and analyze trading signals and their trends.  But, can the mathematical calculations guarantee profits or totally eliminate losses? No.

These formulas could help you analyze the market, but it could never be used to PREDICT the outcome of a trade.  If it could, then everyone would use it and never try making money any other way.

Forex robots can eliminate loss

There are Forex robots and automated systems claiming to have zero losses.  Again, if this would be true then a lot of users would already be walking millionaires.  But that is not the case.  There are plenty of traders who lose their money every day.  Any there are profitable traders who use experience and never use a robot.

You can leave your Forex robots to operate on their own

Forex robots claim that you can just turn on your computer and system and let it operate on its own.  It can finish deals for you, without you even participating in the process. Any trading system has to be executed in a way where it can be monitored and still follow the trader’s trading strategy.

The reality is that you can let your equipment continue on trading, but it does not mean that the more trades that you have the more gains you will get.  It still depends on how you would make your robot work for what you want and you strategy, not the other way around.

Success in demo accounts is the same for actual trades

Just because you have proven the effectiveness of the program in a demo account, it won’t necessarily show the same results in the real account.  Demo accounts use different spreads typically.  This is why it is important to start your live trading slow and control your risk parameters and money management.

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