There’s a lot of talk these days about Forex robots, or automatic trading software. Can an automated trading program make the profits some claim?
Forex is the world’s largest financial exchange and every day more new traders enter the market. Many of them have never traded in any type of market before.
Banks and financial institutions are by far the largest players in Forex.Trillions of dollars are exchanged every year. So there is no doubt there are large amounts of money at stake. And where there are huge profits to be made, there are also some somewhat shady people looking to get in on the action.
Common sense tells us that to be a success in any business takes knowledge and experience. If I opened
a new business in an industry that I knew nothing about I shouldn’t expect to be a success unless I surrounded myself with experienced people working for me that could help me run the business. Trying to run the business by myself with no training or prior experience would not be a smart business decision.
Amazing as it may seem that’s exactly what many new Forex traders are doing. Most have never traded any market before and go into Forex trading with very little training. Some may have taken a free trading course offered by a broker, but these courses are little more than a minimal introduction to trading. They offer very little,if any,in-depth training.
So when these inexperienced traders see the claims being made for a Forex robot that can trade for them it gets their attention. The insane profits being claimed are sometimes too appealing to many new traders.
The promise of quick profits with no experience or knowledge needed should be the first warning sign. But
human emotion can be an overpowering force that over rules our better judgement. Making money is something everyone wants to do. And making large amounts of money appeals to many people.
There are other things we need to consider as well. The truth is Forex robots can make profitable trades. The question is are they a reliable long term solution that will make money week after week under any market condition? Most of the Forex robots being sold are advertised as having an incredible track record of winning trades. The people selling these software programs don’t tell you that the percentage of winning trades is calculated using past trading data. Not real time trades as they would like for you to believe. And some traders have been known to lose large amounts of money because the software is programmed to trade every time a pre-setcriteria is triggered. None of the many other factors that can affect market conditions are programmed into the software.
So the the real question is this a Forex robot scam? Yes and no. These automated trading systems actually do make trades for you, and some trades can actually be profitable. But they can also lose huge amounts of money very quickly. They can not be programmed to take into account every market condition. So before you invest in an automated Forex system remember that no software is infallible.
Maybe the best qusetion is this; if you had created a software program that made such incredible profits and had the high percentage of winning trades these people claim, would you sell it? For under a hundred dollars like many of them do? For any amount of money? Wouldn’t it make more sense to trade your own account and make all that money for yourself?
Forex trading is first and foremost a business and every serious trader should treat it as such. Trading successfully involves more than downloading an automated trading program and watch the profits start rolling in. There is money to made by trading Forex, but anybody that promises outrageous profits in a short time period is not telling you the whole story.
Before you invest in any trading software or program that promises incredible profits and huge returns, remember the old saying, if it sounds too good to be true, it probably is.
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