Most forex traders are majorly disappointed by the fraudulent activates of most Forex Robot used for forex trading at this period of time. Many brokers who are the providers of these automated software are frauds who succeeds to get away with their numerous fraudulent actions. Some of these forex robot providers either ends up being captured by the regulatory bodies or escapes with their customer’s money and never to be spotted again.
Some of these forex robots are made known to be a great example of an easy money making machine where traders rush into it for easy success. Most of the fraudulent characteristics of these robots are hidden by the so called money doubling mechanism.
IMPORTANCE OF MANUAL TRADING
It is said that a forex robot can only be smart as its programmer. Most forex robot makers look for ways to make fast money and are not considerate on the final effect it brings to forex traders. A forex trader cannot depend solely on a forex robot to predict the changes that take place in the forex market without looking closely on the market changes themselves. This is why as a forex trader, one must have the capacity and experience gained from manual trading in other to monitor and understand the activates performed by the forex robot.
A forex trader should be able to understand the concept of forex trading by physically engaging into live forex trades, understanding the difference between trading with a manual system and an automated system. A total reliance on a forex robot is the beginning of the end for a forex trader.
HOW TO EFFECTIVELY KNOW A FOREX ROBOT THAT WORKS
In other to know a forex robot that works, a forex trader should always insist on trying the quality and effectiveness of the software by venturing into a demo trade. The best way is to open a demo account and request for a forex robot and then start experimenting with its features. After developing trading strategies that works and affirming that the forex robot is not a scam while back testing, forex traders should then apply the forex robot into paper trading to examine its rate of success in live market environments.Most successful forex robots have the ability to produce large amount of real capital when using it to trade.
Another predefined method of knowing a forex robot that works is the rate of losses it minimizes. This information can be obtained by trading experimentally with little capital in other to ascertain the ratio of losses verse its profit margin.
In conclusion, a forex traders should be very careful the purchase of a forex robot because not all that glitters is gold. Most are money sucking applications and can only be detected if one has a quantifiable knowledge of what forex trading is all about.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.