If you are a really experienced forex trader, forex automated software can accelerate your research and help make better trades and more money. However, the problem is that most of the forex software is marketed to people who have very little to no experience in foreign exchange trading. Those who sell this automated software like these inexperienced traders to believe that they can make lots of money with your software without knowing anything about forex.
If you are starting to learn about the currencies and even if you know a little but you're not a merchant of art, I recommend you stay away from automated forex software. I think that everyone will get them it is a boat load of problems and the probability that will lose a part of (if not all) of your investment is quite high.
Here are 3 major problems with the automated forex software:
Forex software is difficult to configure
No software is really totally automated. Before you begin to use the software, you will be asked to "configure". Preferences will be established and you will be asked to make several choices. Here's the problem. This configuration assumes that you know enough about currency. If it does, it may not make smart decisions. Also remember the old expression, "a little knowledge is more dangerous than no knowledge." Just because you have studied up does not mean that really know enough to make good decisions with regard to the software configuration. Forex is a very complicated subject. Frankly, unless it is an advanced trader, probably does not know enough to make wise decisions.
Forex software-based systems
Most automated forex software systems creates a partnership between an experienced trader who has developed some kind of forex strategy win and a programmer that can automate this strategy. It sounds good, right? Well wait, there is a major problem. To develop the software, the programmer takes old data based on ancient trades and "backtests" of the software. However, the change is in a State without end to flow and what worked well in the past probably will not work well in the future. This is simply not something that can depend largely on making future trades.
The Software cannot be maintained with the volatile foreign exchange market
Probably not I can emphasize this enough to make it really sink but want to try to save him from making a big mistake. The foreign exchange market is extremely volatile, VOLATILITY is what makes it so profitable if you're a merchant of art, but it is also the main reason why most people lose their investment. The best software tries to remedy this problem by providing frequent updates, also known as "software patches" (some, some automatic manual). However, it is never fast enough to keep really. Also, no matter how well scheduled software, regardless of the strategy the good thing was that the software is based on, is not programmed to deal with all the events unexpected news that affects the Forex market. It is very common to see the currency go on a roller coaster ride or remain a totally unexpected pattern after this news event.
For 3 reasons, it is better not to use automated software unless it is an art dealer and even so, it is best to use it only as a tool - in other words, you don't want to relying too heavily on it for their business decisions.
The best solution to these problems with the software is not using software automated at all. If you are new in Exchange or in the intermediate level, would be much better to get forex signals in real time from a trader of forex experienced years of a track record and what they do. If still a really good forex trader, you will see how adapt to the changing market and deal with unexpected events. We will see as follows and you to do something really good money while you learn.
I always recommend you first proof that the forex signals that are sent in a demo account for at least one month more or less. This will ensure that this is signals that are profitable (and who can judge how profitable) and substantially reduce risks to do so.
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