With so many new people getting involved in forex trading these days, it seems everybody is trying to find some kind of short cut to make it a little easier. We all know that trading is risky, but there are still lots of new traders happy to get involved because the chance of making very good money are so great. Some traders put their faith in automated trading systems, and in this article we're going to look at why that's usually a bad idea.
Naturally, one of the most important requirements if you want to trade profitably is having a proven trading system to follow. Your system will have parameters and rules that tell you when you should get into, and out of, each trade. Since there are hundreds of forex trading systems around, it's critical that you do some research and digging before you choose the one for you.
But even if you do that research and find what you think is the perfect trading system, it's certain that you'll lose money in the market on some trades. There's simply no guarantee any trade or series of trades will make a profit, regardless of what system you use - that's just the way it is. But something that's often held up as a way of increasing your chances of success is what's called an Automated Forex System.
Automated Forex Systems are simply an automated trading robot that makes a series of currency trades for you without you having to sit and watch the market yourself. The story is your happy little trading robot works away on your behalf, buying and selling currencies for you automatically, based on a program that has been developed for the system.
Now you're probably thinking that this sounds like a terrific idea, and a lot of people do. In theory it means that all you have to do is check on your robot every few hours to make sure he's working away properly and he isn't doing anything wrong. And they only cost a couple of hundred dollars to buy too. Sounds like a great idea doesn't it? What could possibly go wrong?
But let's have a reality check. What are the chances that somebody would sell a piece of technology that really made money to you like that for such a low price? Who is going to share that kind of power - the power to make money trading the forex market without you doing any work? NOBODY! (I've already checked).
Here's the bottom line. DON'T fall for the old 'our forex trading robot will solve all of your problems' fairy tale. There are no doubt private traders, institutions and hedge funds that have multi-million dollar automated trading systems that are profitable. But never assume they are the same 'forex robots' you see advertised for a hundred dollars or so. Nobody is that benevolent.
The only real way to make decent money trading forex is to learn from a trader who knows how to teach you. Then get a free demo account from a broker and practice using that system until you can confidently trade the market. There IS no shortcut shorter than that. Find a good trader who's willing to share what he knows, follow that, and you might just succeed as a trader.
Naturally, one of the most important requirements if you want to trade profitably is having a proven trading system to follow. Your system will have parameters and rules that tell you when you should get into, and out of, each trade. Since there are hundreds of forex trading systems around, it's critical that you do some research and digging before you choose the one for you.
But even if you do that research and find what you think is the perfect trading system, it's certain that you'll lose money in the market on some trades. There's simply no guarantee any trade or series of trades will make a profit, regardless of what system you use - that's just the way it is. But something that's often held up as a way of increasing your chances of success is what's called an Automated Forex System.
Automated Forex Systems are simply an automated trading robot that makes a series of currency trades for you without you having to sit and watch the market yourself. The story is your happy little trading robot works away on your behalf, buying and selling currencies for you automatically, based on a program that has been developed for the system.
Now you're probably thinking that this sounds like a terrific idea, and a lot of people do. In theory it means that all you have to do is check on your robot every few hours to make sure he's working away properly and he isn't doing anything wrong. And they only cost a couple of hundred dollars to buy too. Sounds like a great idea doesn't it? What could possibly go wrong?
But let's have a reality check. What are the chances that somebody would sell a piece of technology that really made money to you like that for such a low price? Who is going to share that kind of power - the power to make money trading the forex market without you doing any work? NOBODY! (I've already checked).
Here's the bottom line. DON'T fall for the old 'our forex trading robot will solve all of your problems' fairy tale. There are no doubt private traders, institutions and hedge funds that have multi-million dollar automated trading systems that are profitable. But never assume they are the same 'forex robots' you see advertised for a hundred dollars or so. Nobody is that benevolent.
The only real way to make decent money trading forex is to learn from a trader who knows how to teach you. Then get a free demo account from a broker and practice using that system until you can confidently trade the market. There IS no shortcut shorter than that. Find a good trader who's willing to share what he knows, follow that, and you might just succeed as a trader.
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