Have Forex Robot Users Lost Perspective?
By: Edward Lomax
Using a Forex robot to do your currency trading for you is a dream come true for many Forex robot users. Just imagine, without knowing anything about Forex or currency trading, you can extract profits from the market on autopilot. I know, I do it every day. But there is an underlying problem with Forex robot users that don’t now anything about trading Forex… they lose perspective.
If you trade Forex manually like I do, then you know you have to learn and practice because trading currency is a SKILL. Like anything else worth learning, you need guidance and must practice the SKILL of trading currency until you can execute the trades profitably. And I understand the allure of trying to skip this step completely by using a Forex Expert Advisor that does everything for you.
Forex Robot Users Are Losing Perspective.
I fear that without any practical knowledge of trading manually, robot users are losing perspective. It really is a matter of expectations. Since they don’t know trading Forex can be challenging at first, they expect huge gains every day. Since they don’t know that you need to take what the currency markets give you, they don’t understand why the robot isn’t trading like crazy every day of the week. And even when the robot is making profitable trades, they expect more.
Are Forex Marketers To Blame?
To be fair, the way some marketers portray Forex robots is to blame for cultivating unreachable expectations. They hype up the Expert Advisors on the sales page to the point that the buyer is expecting to get rich in a very short amount of time. After all, who doesn’t want to make a fortune overnight? But the truth is, Forex in general and specifically automated robots should not be look upon as some “get rich quick” method.
A Common Sense Approach To Using Forex Robots.
I trade both manually and use expert advisors. I think a mixture of manual trading and using automated trading solutions is the way to go. And I’ll be honest, when I trade I DON’T expect to win every day. Hey, some days things just don’t go my way… but I’m learning. And the same goes for robots. What I look for is profits over the long haul.
Let’s use an example. Let’s say I got an automated robot and expected my account to triple every month (because I didn’t have any experience trading currency and thought this was a reasonable expectation). Well, that is a tall order. So, when the robot fails to reach that expectation, they believe it is not worth using.
In the above example, let’s say the robot was pulling in a nice 10 pips per trading day. And let’s say it only trades 15 days out of the month (because it doesn’t trade on Fridays, weekends or when market conditions for trading are not optimal). That is 150 pips in a month. That is 1,800 pips a year… for doing NOTHING but setting the thing up.
I know a lot of manual traders that would LOVE to be up to the 10 pips per day trading level. So, while the trader without any manual experience might feel the success of this robot is not substantial, the experienced trader knows this is an excellent find. I mean, I personally love seeing an extra 10 – 20 pips added to my account without lifting a finger. Commons sense says that a Forex robot that makes consistent profits is a really great find.
In conclusion, I would just like to say that I believe a combination of manual trading and automated trading is the way to go. Trading manually really gives you the perspective you need to stay away from the hyped up robots out there that have little chance of living up to your expectations. You really do appreciate those extra pips in your trading account for doing nothing when you know what it takes to become a successful manual trader.
To see the results I get with a Forex robot on a LIVE account… go to this Forex Megadroid Results page and look for my live trading results.
If you are a complete Forex beginner and don’t know how to trade manually, I think Forex Nitty Gritty can do you a world of good.
And if you are not a beginner, but are looking to take your manual trading to the next step, I’m REALLY impressed with Learn Forex Live.
Remember… diversity is key, and I wish you luck which ever way you decide to trade Forex.