Forex Robot Software – Why Traders Lose With Robots

Forex Robot software is popular but very few traders win with a robot. Here we will look at the main reasons why and how to find a Forex trading system that wins …

Forex Robots fail in real time trading because the vast majority are based on unsound logic and have never made any money in real time trading sure, the track records says they have but look a little closer and you will see the reality which is:

The track record is a simulation in hindsight or presented by the vendor with no independent verification.

The claims are extraordinary and are obviously not true:

Double your money each month, little or no drawdown, trade with over 90% accuracy etc and you can get access to these systems (which beat the best traders in the world) for the cost of a night out.

If you listen to the sales copy, you have to make no effort and simply make money while you sleep. Common sense tells you these systems do not work, they simply look to good to be true and they are.

Now I am not saying you can not make money with automated Forex software because you can – but let's look at the reality of trading robots and leave the fantasy behind.

The reality is there are some good solid programs you can use which have made real gains and the best usually make about 50 – 100% per annual with drawdown being around 20 – 50% depending on the risk profile of the system and a typical drawdown period will last for a few weeks.

So great long term gains, if you can ride out short term drawdown with discipline.

So if you buy a Forex trading system, look for real gains and check the logic so you can follow it with discipline.

You can buy a system and surprisingly, there are a few great free trading systems you can use that work (we like Richard Donchian's 4 Week Rule) and they can if applied over the long term, lead you to currency trading success.



Source by Sonia Kristina

Be Careful With Forex Trading

Forex trading is the field in which you buy one currency and sell another, field that is quickly becoming an attractive business opportunity. This market is one of the best places to invest your money if you know how.

So, can you really make money from forex trading on a part-time basis?

In order to succeed, a beginner must learn that this takes a dipline (it is not a piece of cake as some people would like you to believe). Please consider this. Below, you'll find some tips that you should know before you even think about entering the forex market.

Start With a Demo Account

If you are a newbie to Forex Trading, a very good way to understand it is to start trading with demo accounts. A demo account does not require any capital, but it does train an investor in how to approach Forex trading (many brokers offer a demo account facility that will allow you to make some tests without risks).

Forex Trading Software

Forex Trading Software is the foundation of successful trading and there are lots of software packages to choose from (forex tracer for example), and the main benefit of using these kind of tools is automation.

Using a trading software could save lots of money and it could also be an unfair advantage to any trader (newbie or experienced).

Conclusion

It's very important to remark that you need to have a good basic knowledge of forex trading before you can start, because forex is a money game and any game requires that you learn to play it first.



Source by James Duarte