Wrestling with Starbucks: Conscience, Capital, Cappuccino
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Is this a sensible trading strategy or just plain and simply forex auto trading robot software freeevening standards Forex robots, or FX bots as the tech-savvy crowd calls them, are computer programs that make use of a variety of trading signals to decide whether to buy or sell a specific currency pair, at a certain moment in forex auto trading robot software freeevening standards. With an automated system of trading, the often-detrimental psychological element is removed from the trading process; and it also allows traders to get on with other things.
So is that a good thing or a bad thing? As with many arguments it depends on which angle you look at it from. In order to understand exactly what a Forex robot does, we should first examine Forex trading in general.
The aim of any Forex trader is to predict what is going to happen to the value of a foreign currency, and to make a profit from speculation. The world forex auto trading robot software freeevening standards trading and processing of stocks started with humans sat behind a desk, negotiating and placing orders over the phone.
Nowadays, as with many things, trading has gone digital, and can even take place on an automated basis, with no intervention from humans.
Many use these automated trading tools to their forex auto trading robot software freeevening standards advantage, turning small trading accounts into much bigger ones. However, there are also a number of traders who are treating this advance in technology with much more skepticism.
How could a robot possibly make sensible investment decisions? And there is a valid point to this side of the argument too: While there are a number of investors who have gained from using automated Forex forex auto trading robot software freeevening standards robots, there are a number who have lost it all.
So how does an automated trading robot work? It uses its very own analytical abilities to investigate the past performance of a particular currency pair, both in the short and the long term. It spends its time looking for trends that have occurred, over and over again, during the lifetime of the currency pair.
It is looking for troughs as well as gains, and for events that may have caused the rise or fall in price. The robot then chooses whether to carry out its own trades based on what it has uncovered by looking at past performances.
It sounds pretty foolproof, and indeed it can be. But — and it is a big but forex auto trading robot software freeevening standards there is a downside to such a system. There is absolutely no guarantee that conditions in the market will stay the same. The world is controlled by humans, with all their human emotion and unpredictability. For this reason, it is not possible for a computer to react to every situation. Events that happen outside of its remit will throw its investment strategy out the window, and possibly even damage it.
All it takes is for one of these events to throw an automated trading system into the red. For every lucrative trade a robot has the potential forex auto trading robot software freeevening standards make, there is one waiting to trip it up. Say, for example, a political announcement is made that causes a small dip in the value of a currency. The expert trader monitors the robot, and helps in the decision-making process, as well as adapting the program to cover any new and unexpected changes.
But did the Holy Grail ever really exist, or is it just a tale of myths and legends? There is no get-rich-quick scheme, and if there was, why on Earth would anyone want to sell it? Some of the biggest financial firms keep their trading programs safe and secure under lock and key, where nobody else can find them. Unfortunately, because Forex trading is still relatively unregulated, the number of scams seem to be ever-increasing. One area in which this happens on a regular basis is with automated Forex trading bots.
They even seem to be able to publish positive results on their sites. However, a word of warning: These amazing results are often the result of back-testing, or based on hypothetical results. The back-testing results are also very likely to have been manipulated, often only covering hypothetical trading for a short and carefully selected period of time, usually when the results would have forex auto trading robot software freeevening standards the most impressive.
Results obtained during live trading, over a longer period of time would be more valid and relevant. The most common problem with fraudulent robot trading systems is in the way the services are marketed. Promises of guaranteed success and limitless profits are obviously untrue. Well, with automated trading systems this is definitely the case. Some FX bot providers may claim that their trading results were obtained using real-time data.
What it is actually saying is that the robot used a live data feed, as opposed to being tested on historical data. Hypothetical results are just that and nothing more, and should always be taken with more than a grain of salt. Our advice would be to contact the provider of the automated trading system and request additional independent verification of the trading results. Having the opportunity to trade foreign currencies 24 hours a day seems too good to be true.
Automated trading does have the potential to increase your profits, but you have to remember there are risks involved. In order to make the most of an automated Forex robot, you first have to find the best one.
One final thought, which actually applies to a number of situations, especially when it comes forex auto trading robot software freeevening standards trading Forex, is to investigate thoroughly before you decide to invest.
Any form of investment comes with a certain level of risk, and not only is there a chance for profit, but there is an equal chance of a loss. And the moment you become suspicious of any wrongdoing, or the provider suddenly disappears off the face of the earth, pull out before you lose everything. Have in mind also that some Forex brokers do not allow the use of robots on their platforms. Forex trading is not supposed to be just a means to make money, but it should also be enjoyable.
Be sensible, trust in your instincts, and take any advice you can get.