We live in busy, unstable times. Everyday, we are burdened by a "to-do list" which never seems to get any shorter. In our lust for wealth, nothing sounds better than simply installing a forex robot, flipping a switch, and making money on auto-pilot.
The burning question is: Do they work?
While this is not an easy question to answer because every program is different, there are several principles which apply to all Forex robots.
1) They require significant human maintenance.
They are virtually never as simple as the advertisements make them out to be. They are not perfect, either. They often require substantial human intervention to prevent trading disasters. In essence, you have to babysit them. A robot cannot "think" - it just does what it has been programmed to do. And if there has been an error in one of the variables, the computer will not recognize it. It will simply continue chugging along, making errors repeatedly until either your account is exhausted or you fix the program manually. The only way to become aware of an internal error is to check and monitor the program often.
2) They will not make you rich overnight.
Despite what clever advertisers want you to believe, these programs will not make you rich overnight. You cannot start an account with $200 and retire next month. It simply does not work that way.
Can you transform $200 into a significant amount of money? Sure. You just need several years and a whole helluva lot of luck and persistence.
3) They are not 100% infallible.
No system, program, or trading strategy works 100% of the time. If it did, you could bet the maximum number of lots each time and amass a fortune without any risk. Sounds great, but it's impossible. It is not possible to win all of your trades manually or with the most sophisticated forex robot. No mathematical formula, hedging strategy, or moving average system can win all the time.
Why? Because the market is not 100% predictable. It's constantly in flux and adapting. This is NOT a static market. It experiences great volatility at times for a multitude of reasons. Furthermore, a Robot can only do what you tell it to do. It cannot incorporate any kind of fundamental analysis into it's trading plan. If a natural disaster occurs in a major country, Forex will definitely be affected. However, your robot will continue trading, entirely oblivious to news events.
Sure, a natural disaster would be splattered all across the news and you would no doubt turn off your forex robot and stay out of the markets. What happens if you can't make it to your computer until several hours from now? You are now at the mercy of your robot.
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The bottom-line is that Forex is best traded manually. Work hard on developing a system of your own rather than being a slave to robot concocted by individuals only interested in padding their own wallets.
THINK about this...
Imagine you educate yourself in computer programming, mathematics, and business. You want to build your own Forex robot based on cutting edge mathematical principles. You tinker on your computer for weeks and even months, but nothing seems to work. You simply cannot formulate a winning program.
Then, you have a breakthrough as you are drifting off to sleep one night. Excited, you rush to the computer to implement your new theory. You fire up the robot with the new changes. It initiates a trade, which it later wins. Great, but not enough to fully test your program.
Satisfied for now, you let your computer run overnight. You check it the next morning. It won 4 trades total now, banking you a decent amount of money. Fabulous, but you are still hesistant. You want to be sure about this robot, so you continue letting the robot run for the next few weeks.
The results are in - your robot won ALL its trades! You continue letting the robot run, and it continues to make you money over the next few months.
STOP!!!
At what point would it ever creep into your mind that you should SELL such a beautiful system to the general public????
Does that make any sense whatsoever? OF COURSE NOT!
You would guard this program with your life! You would never reveal it to anyone that you had such a program! It would be your secret wealth builder.
Indulge me a bit longer...
Imagine one day you wake up to find that your robot started losing. First a few trades, then the majority of your trades.
You could spend a gargantuan amount of time and resources in an effort to tweak the program to get it "back on track".
Or, you could do what the vast majority of programmers do...SELL IT!
You've basically got a useless piece of junk which is hogging CPU space. However, in the past, this robot did work. This is your new "pitch" page. I mean, you've got "hard, fast proof" that your robot has worked. It made you a boatload of money!
*NOTE* You will *forget* to mention the most recent trades, which were all failures. Oops.
Your web-page will be very slick! It will state that you cannot guarantee future results, but that this is what happened in the past.
It is irrelevant if you are only showing them part of the story. You show them only the winning trades.
Are you lying? Not blatantly, because those things really did happen.
Are you being deceitful? Yes, because you are omitting (conveniently) the negative truths.
Welcome to the world of marketing!
People who sell you these systems are not doing you any favors. They are simply selling you junk most of the time.
Take home message?
Learn to trade manually for now!
It's not rocket science - you just have to be consistent and have a bit of common sense.
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