The amount of money traded in the Forex each day has reached unbelievable levels and as you would expect many companies have entered the fray with products and tools designed to help you and I, traders, make more cash.
Even if today is your first day looking at the Forex market and you're trying to decide whether or not to get involved, I am certain you've seen dozens of ads for automated trading robots.
Forex trading robots as claimed by their creators and marketers, can monitor the Forex market for fluctuations and act automatically to these changes making trades which make their owners lots of money. Many of these companies claim that their robots can make you money automatically even while you sleep or are on vacation.
What makes these automated robots tick? Exactly how is it they know when to buy, when to sell, or just as important, when to simply do nothing? In a nutshell, Forex robots are designed to monitor fluctuations in currency price and then when certain market conditions are met, they automatically, in many cases, make trades. These "market conditions" are set by the robots owner (you or me) based on several factors including aversion to risk or lack thereof.
Moving forward in the process, once a position has been purchased and established, the robot will then sell that position in an attempt to make it's owner as much profit as possible. The selling point, particularly to newer traders is that the robot can be set up to trade on its own and make a profit with very little downside risk.
Can these robots really make money on auto-pilot as advertised?
My quick answer is no. There are so many factors that drive fluctuations in currency prices that even the most intricate Forex robots can't realistically be expected to make the correct decisions concerning profitability 100% of the time.
Having said that, Forex robots can be and are a very valuable trading tool. They can make turning a profit in the Forex market far easier and can make your learning curve a lot shorter. In my opinion and in my experience, a newer trader will find that achieving profitability is far easier with a robot's guidance than if they try to trade without it. These auto-bots should be monitored and have to be set up correctly to ensure that they make profitable decisions the majority of the time. Follow the instructions carefully and read as much as possible regarding set-up parameters before beginning live trading with real money.
Traders should use Forex robots as tools to simplify their decision making but it is the trader who ultimately should make the decision. Forex robots can be very powerful tools when used in this manner. It is usually when beginner traders take the mindset that they can automatically start making you money without any monitoring or safe guards that problems can arise.
A new trader should research their purchase before buying any tool. As with any product in virtually any market, there are some products that are scams and others which are legitimate and work as advertised, so do your homework.
Whatever Forex trading tool you decide to purchase and use, please keep in mind that it is not the tool but how you use it that will determine your profitability.
Currency Trading in the Forex market is one of the hottest topics online today.
Currency Forex Online Trading product reviews and consumer feedback is a great resource for comparing Forex trading platforms and automated robotic software. Compare features and pricing and read actual consumer reviews. Make an informed buying decision.