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Tags: finance, currency trading, forex robots
 A couple of times over the past few weeks I've been going on about the benefits of trading software and how it can help beginners in the field. To recap, there are the kinds that will help introduce you to the market you want to get in to and there are the kinds that will hold your hand the whole time that you're trading.
This time I'm going to have to elaborate a bit more on the cons of using forex software that want to do everything for you. That's right, this will be another take on forex robots so you'll finally know if they really are that good, or too good for that matter.
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Experience will be your most useful tool in the foreign exchange market. Experience is what will give you that edge against anyone else and what can potentially keep you ahead. Forex robots do not have that and they cannot give you that. If the machines were that good then they would have replaced every trader out there in the business, but they're still there and they're still in business.
Most, if not all of them, are forking over returns bigger than what these forex robots can offer. Any expert advisor will tell you that there are several things wrong with what cheap currency trading machine ads. For one thing, most people shouldn't be amazed at the algorithm formulas that these things advertise.
Yes, they are complex, but they are based on a history of raw data that may not happen again. The program will always want to make the best move for you, but the execution of the program may not always be consistent with real time. Forex robots depend a lot on their past track record.
They use that track record as evidence for future returns, but what you get are simulations that go backward or direct figures from the vendor which are not independently checked. A lot of these companies will promise more than 300% annual returns with less than 1% drawdowns. This makes no sense.
You will always have drawdowns when you trade on leverage and never as good as less than 1%. An expert will find this an impossible feat, let alone a machine with no intuition at all. Forex robots really are helpful for beginners, but they will only allow you to stay at a certain level and you may lose more than you think you will.
A lot of experienced traders without the use of forex robots lose in the market. It's too presumptuous and naive to think that you'll never lose if your account is managed by some electronic system. As I have stressed before and I will stress again, experience is the best teacher.
It will grant you the intuition you'll need to be a real competitor in this field. If you want to make some serious money then you need to treat this seriously. Invest some real money into educating yourself; get yourself a mentor or take some courses. This is the best way to go about it.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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