How would you like to have your own money printing machine that does not require your constant control or maintenance? That is a fantasy that many in the forex market have seen as achievable.
This has been made possible through automated currency trading online.
However, if you intend to use automated trading on your forex account there are some very important factors you have to take into consideration.
Otherwise, it will turn from your dream come true to a real financial nightmare.
What Are Forex Robots? The first thing you have to understand is what automated trading is really about.
Simply put, this is the use of a forex robot to make trades on your behalf.
A forex robot is software that you install and use with your trading platform to manage your trades following some set criteria.
These criteria are in form of algorithms which you have to input into the robot according to your forex strategy specifications.
Algorithms It is important for all traders to note that your forex robot is only as good as your forex strategy.
This strategy is translated into executable action by the algorithms that you input into the robot.
Some trading robots are much easier to code but others may require the help of a programmer.
If you are using a computer programmer, try and find one who is well-versed with the intricate details of the forex market.
That way, s/he will be in a position to understand what you need and what each instruction is set to accomplish.
Trading On Emotions Most traders fail in the forex market due to the heavy influence of emotions and psychological conditions.
Stress, fatigue, excitement, greed, fear, and hope are all part of the various emotional and psychological factors likely to negatively impact how you make and execute your trade decisions.
By using a forex robot, you can fully automate your trading such that the robot fully follows your strategy.
This completely eliminates any of these human emotional and psychological influences that may sabotage your trades.
24-Hour Trading The forex market is a high liquidity 24-hour market.
That means, conditions that favor your trading strategy and are likely to provide you with very high profits may occur at any time of the day or night.
Unfortunately, we are only human and we need rest, relaxation, sleep, play, and to spend quality time with friends and family.
That means that we cannot always sit at our computers watching market movements waiting for those perfect market conditions to present themselves.
Thankfully, a forex robot does exactly that for us.
It continuously studies the market for us and speedily identifies the best conditions to participate in the market.
So whether you are asleep or at the mall, your personal money-minting machine will be working for you.