Automated Forex trading software (or Forex robots) have many advantages over the human method trader.
Humans tend to act based on emotion, with a computer, emotion never comes into play. Since the computer is emotionless, if the system says buy, the buy order is issued. Forex’s automated systems will never change.
Therein lays the inherent weakness of the human method trader. For instance, if a particular strategy did not work in previous trades, often the human method trader will sit the next one out and then watch it make a huge profit. Knowledge and experience can tell the human trader the best route to take on a particular trade, he can fall prey to basic primal emotions of self doubt, fear and greed. The possibility for poor or inconsistent decision making exists for most traders.
Automated Forex Trading Software can flag opportunities that a human method trader could have either missed or skipped because it did not seem profitable or seemed irrational at the time. Again, the consistency of the automated trading software is what is key. Likely, some of the most profitable trades made by automated software programs would have made practically no sense to a human trader.
If the human method trader is a solo trader (meaning John Q. Public investing his own money) then the trader must take the time to learn and study the forex markets, develop a strategy, employ his own risk management strategies, and never ever stop learning. This can be a hugely daunting and intimidating task for a beginner, and mistakes and losses are to be expected as part of the ongoing learning process. In essence, if the trader does not do his research, he could stand to lose his investment. Talk about the potential for self doubt and fear!
The other option in human method trading is for Mr. and Mrs John Q. Public to employ the services of a forex trading broker. Another option for Mr. and Mrs. John Q. Public is to use a forex trading broker. Meaning that you entrust your hard earned money to a stranger essentially and depend on this person to get a return on your investment. Then there is the proverbial glass ceiling, you are only as good as the broker you employ. This is also where the primal emotion of greed comes into play. To put it plainly, an automated software program can't steal your money and run off to the Bahamas with their secretary.
This is all about the profits you want to make, and automated Forex Trading Software applications are the tools to help make that happen.
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