According to records, less than 10% of forex investors actually make good success in most of their transactions. As a result of this, many other do not really wish to put their hard earned money into trading forex only to lose it eventually despite that, they still wish to buy and sell currencies in hope that they will learn what there is to learn and be a part of the successful 10% one day. Knowing all these, brokers offer free forex robot downloads to traders as a way of encouraging them to pursue forex; which is quite enticing and a great opportunity. Anyone that does the right things can make a good fortune from just one free forex robot download. But how do you know which one is good enough. Here are some things you must know before downloading a forex robot.
1. MOST OF THESE ROBOTS WERE NOT TESTED IN ACTUAL LIVE TRADES:
Manufacturers of a forex robot will not tell you that their product was tested only on historical data; which can be helpful in analyzing the forex market. But why will one want to sell such a robot to anyone and make them believe that it will return the exact same result as it did in historical market? There may be issues like connectivity issues, or problem with a broker.
- HOW TO AVOID THIS PROBLEM
To avoid this, one should not be in a hurry to jump into a live market with a product they know next to nothing about. They should take their time to see how it works on a demo platform, after which they can go ahead to use it with just a little amount of money as their capital; something they are willing to lose should it come to that.
2. FOREX ROBOTS ARE BRAINLESS:
They are programmed in a certain way, and cannot do anything outside the instruction given by the programmer. Well, this is good, and takes away all the sentimental issues that may arise when a trade is being performed by a human. However, the forex market is ever changing, and the robots cannot be relied on to handle such changes. This can lead to a great loss if nothing is done to stop it.
- HOW TO AVAOIND THIS PROBLEM:
The very first thing that should be done to avoid this is for the vendor to actually know how to trade the forex market so as to be knowledgeable enough to point out abnormalities should they arise, and to proffer great solutions as needed. Also, instead of leaving the transaction entirely for the robot to run, it will help for the trader to check in every now and then to be sure things are in order.
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.