Automated Forex Trading Software is the latest thing to be promoted on the internet to want to be forex traders. What we have to actually ask ourselves is "does it work?" One of the largest hurdles in forex trading is personal emotions and self control, it is the hardest thing to stay in a trade that is losing you money when all the signals are pointing for you to be making money.
Automated forex trading software is designed to take away this human emotion and to trade within the parameters of established channels set by the software. We know that the forex market is the most unpredictable financial market in the world and therefore I find it hard to believe that automated forex trading software can predict future trades as the parameters are changing all the time.
Let us set up a small scenario; forex trading is done primarily by looking at past price action in some shape or form, whether it be moving rates, Fibonacci levels, pivot points, support or resistance levels. When we trade with the human eye we are looking for new levels to be broken and then become new support or resistance levels. Automated software will set targets for past support or resistance levels, but if they fall short then you are in danger of the trade going from being deep in profit to getting stopped out if you are not watching it.
When excluding automated forex trading software you are able to intervene and stop a trade from eating up all your profits if a target is not reached or definitely stop yourself from being taken to a loss. The best way to trade is simply to set your plan and a contingency plan and stick to it, hard, yes I know but so is forex trading and that is why everyone is not doing it.
Automated forex trading software does have some qualities but it is important to do your research into the program before you purchase it. There is a lot of software out there that not only is very complex to understand it simply does not make a profit.
Source by Adam Woods