Forex Trading Robots – Losing Myths You Need to Avoid to Win
The world of forex trading robots if you read the advertisements online is a simple way anyone can make money and a number of myths are presented by them, fall victim to them and you will lose. Here are the main ones.
1. A Simulated Track Record is Proof the System Works
You see some fantastic track records but most of the records are not real there simply a simulation on past data. Look in the small print and you normally see this:
“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.
If you see a track record with the above on it discount the track record and look for another system.
2. Clever Systems and Best
No there not the best forex trading robots are simple. Simple systems work best as there are fewer elements to break in the brutal world of trading.
You will see adverts on the net for people who say they are clever worked for NASA and all sorts but that’s not a help in forex trading. You don’t get rewarded for being clever – you get rewarded for being right with your trading signal.
Don’t assume because the vendor is clever he is more likely to win.
3. Ignore Scientific and Predictive Systems
I see numerous systems based on science and they claim to know the formula of market behavior – Really? If they do, why are they not keeping quite and making millions?
These theories are normally based on “legends” such as Gann, Elliot and Fibonacci – but keep in mind these guys didn’t win all the time and neither will you. If you could predict price movement there would be no market, as we would all know the price in advance – period.
Predictive forex trading systems are as accurate as your horoscope, don’t fall for them.
4. You can trade with Little Drawdown
I have been in the game of forex trading for 25 years and have met some seriously wealthy, great traders and do you know what?
They all suffered drawdown periods of 6 months plus. If you don’t think that happens, think again it does and to the top traders.
You have to be prepared to sit through weeks or months, of losses. Sure, over a year you might bank a triple digit profit -but you need to sit on some heat in between.
5. You Don’t Need to Input Anything
Just turn it on and it makes money for you – not quite so simple in reality.
Any system has to be executed with discipline.
The currency trading system you choose, may be soundly based however, if you can’t execute it with discipline, you have no system!
You need to do your homework and make sure you have confidence, to keep executing the trading signals, even when you’re losing.
Automatic forex trading systems can and do make money for traders.
The message of this article is you need to be realistic and separate hype from reality.
If however you find the right forex robot and judge it over years, it can make you triple digit gains, in less than 30 minutes a day and that’s not a bad return!
Just avoid the myths and choose your forex trading robot wisely.
Watch the video related to automatic forex
www.Honest-Product-Reviews.org Autopilot to Forex Riches! Sounds crazy? Read our reviews to find out what you’re missing out on…..
Help answer the question about automatic forex
Automatic 100% Hands-Free Forex Robot?i am in forex trading business. i want a robot which can save me a lot of time.
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About Author
Kelly Price -
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NEW! FREE FOREX ROBOT TRADING PDF
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Tags: aciton, analysis, automated, automatic, Currency Trading System, forex trading robot, forex trading system, Mechanical Forex Trading System, mistakes
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April 1st, 2010 at 9:28 pm
If you are looking for the best forex software, check out this
http://make-money-with-forex.org
Here you'll find the best software that will increase your forex trading profit
April 1st, 2010 at 9:57 pm
Here is a free video feed to some well-drawn Forex trendlines that get updated continually. It may be helpful to you.
April 1st, 2010 at 9:22 pm
i like you video, i am testing also a good tooll to make money using forex robots
April 1st, 2010 at 9:57 pm
thanks for the tip..
but i would just use “itrademax” trade software.^_^’
April 1st, 2010 at 10:01 pm
thanks for the tip..
but i would just use “itrademax” trade software.^_^’
April 2nd, 2010 at 2:22 pm
Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words "Forex" and "lose" to see this is the consensus.
Forex is what we call a "zero sum" game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the "bets" in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.
Actually Forex is not quite a zero sum game. It's a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It's a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
I have never heard of a automated Forex program for home use that actually works, although a lot of people on the internet try to hawk programs they claim work. However, I am sure the professionals that constitute most of the Forex market have better programs that you are able to buy. Once again, you are playing at a disadvantage.
Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty.
I would recommend not trying to do Forex at all, unless you are a trained professional. It's like playing poker with people better than you, with the house constantly taking a small percentage from the pot.
April 3rd, 2010 at 2:18 am
I did buy this a few days ago when they launched it on the recommendation of my friends who had a chance to test it out.
So far I have only done paper trades (no real trades yet) and the results are good. In fact, I would have made some money if I played real trades.
It is very easy and really simplified. It's more or less automated. Not much thinking needed.
For now, it works well according to my friends. I just hope it continues to do so.
April 3rd, 2010 at 10:24 am
There is NO forex signal company that can beat the market in the long run. This is from my experience in forex trading for years. Else everyone is rich. Here is a good read about forex signal company: http://www.forex.labuan.net/forex-signal.html
A Forex trader needs to learn and master the necessary skills to be successful in forex trading.
April 3rd, 2010 at 2:45 pm
Looks like you have a lot of expectations from Forex Trading.
Anyway I have been trying to buy this hot selling software that came out this week, Automated Forex Cash and below are the specs from the sales page that may meet some of your requirements.
1. Automated Forex Cash is shockingly simple. It takes 15 minutes at most for the average trader to create an account, understand the process, and apply.
2. Mind-boggingly easy. It's easily and quickly understood by anybody from newbie to veteran.
3. Easy to install. Easy to use. It takes at most 5 minutes to get the software up and running.
4. It can't get angry or greedy… so it allows YOU to operate at 100% efficiency
5. You can start with as little as $250 USD on a real account or experiment on a demo account without risking any real money until you're comfortable.
6. It works with absolutely any forex broker.
7. It applies to each and every currency pair and any financial market.
8. Reliable and consistent.
9. It can be tested without having to risk any trading capital!
10. Can be used anywhere at any time because the market is always open!
If you find one that works 100%, please share with us. Good luck !
April 3rd, 2010 at 6:16 pm
Expert advisors have some application
Advantages:
Can generally execute some commands, like entering trades based on one timeframe and certain conditions. Scripts can work well for closing out trades at certain $ profit limits.
Disadvantages
Two people using the same EA can get different results and sometimes vastly different with stops, limits and entries not executing.
You must leave your computer on or an EA wont work, or use 2 or 3 laptops running simultaneously.
If an EA buys the GBP/USD for example and closes it out for +75 pips and ths pair continues up for another 500 pips you missed 80% of the move. This is terrible money management but the EA still did what it was supposed to do.
Possible solutons:
Learn to trade the forex, sounds pretty dumb i know.
Get a server based execution system not one based on an EA.
Get an effective set of trend signals and do some papertrading.
good trading
mark mc donnell
http://www.forexearlywarning.com
April 4th, 2010 at 10:11 am
You are smart to ask for input before investing any money.
The best site that I have found for honest reviews of Forex tools is a site that has a weird name but good content. http://www.forexbastards.com
3000% profit in a year sounds a bit farfetched. Perhaps they forgot the decimal point a few digits ago!
Best of luck in your Forex experiences.
May all your guesses be good ones.
Paul
April 4th, 2010 at 6:37 am
You Can Reed More About this At : topforexproducts[dot]com
April 4th, 2010 at 9:25 pm
When you are dealing with so much potential of risk and money loss why do you want a free service that is unlikely to give you any support or updates?
I'm not saying it can't be found but the likelihood is there will be strings attached. Free software are always not updated and may have bugs etc and you would have no one to turn to.
The money you spend on proper software is usually quite reasonable compared to your turnover.
April 4th, 2010 at 1:50 pm
I have a collection of forex systems. Click on my account to see!!!