Forex Robots – 3 Reasons You Will Lose Money if You Use Them … : Forex Trading Software

Forex Robots – 3 Reasons You Will Lose Money if You Use Them …

April 29th, 2010

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forex robots will generally wipe out your account and do it quickly. Only a tiny minority win and they’re not the ones you see heavily advertised. Normal, sensible people fall for the myth they do make money and here are 3 reasons, why you are odds onto lose with them…

The first point to make is that the automated forex trading systems you see all produce great track records – better in fact than the worlds top fund managers and all for $100! Now, why haven’t banks brokers etc, sacked their multi million pound dealing teams and use a robot instead? This leads to the first key point.

1. The Robots Produce Made Up Track Records in Hindsight

All you need to do is look at the small print and you will see the Robot has never been traded for real, it’s a back test on historical data knowing all the facts and closing prices. The vendor simply buys and sells to make a profit knowing the closing prices and bends his system to fit the data. You can’t bend going forward though and these Robots get a reality check from the market and get wiped out.

Even if the systems were good, the amounts they say you can start with – like $100 are just too small. You are going to have losses on any system and $100 will soon be taken by the market.

3. Money Management is non Existent

Because the track records are bent to fit the data, money management rules are generally non existent.

The reason for this is that they have bent the rules and will leave trades open you would never do in real life. I once saw a robot which claims in several years it had never had one single loss yet, look at the track record and you could see a trade closed for a profit of under 10 pips but losses were several hundred pips before the trade turned around. You wouldn’t do that in real life!

Any Forex Trader knows that success is built on money management and these robots have rules that in most instances are laughable.

Fantasy Profits Reality Losses

If you want to win at Forex trading forget the fantasy of plugging in a $100 dollar software package, with a simulated track record and it giving you profits with no effort instead, focus on learning Forex trading the right way.

You need to make an effort and get the right Forex Education – but your efforts will be well rewarded. You can learn to trade in a few weeks and soon be making big profits in around 30 minutes a day.

Treat the markets with respect and you will be well rewarded with a great second or even life changing income, trust a robot with a simulated track record and you will be in the majority of losers.

Kelly Price
http://www.articlesbase.com/currency-trading-articles/forex-robots-3-reasons-you-will-lose-money-if-you-use-them-680072.html

Forex Robots – 3 Reasons You Will Lose Money if You Use Them …