18/06/2024

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Securing Your Digital Future

Forex Robot Software Trading Versus Manual Trading Which is Better, Easy to Do and More Profitable!

3 min read
Forex Robot Software Trading Versus Manual Trading Which is Better, Easy to Do and More Profitable!

Many people want to trade forex. After the crash of the stock market, many stock investors and traders have turned to the forex market. There is never any recession in the forex market. The forex market is the only recession proof market in the world. This is because of the inherent nature of this market.

Currencies can only be traded in pairs. If one currency goes up, the other in the pair goes down. So, you can go long or short with ease unlike the stock market where not every stock can be shorted plus you have to follow the uptick rule. Whatever, when people turn towards forex trading, most of them get swarmed with one forex robot after another.

Forex robot is a piece of software that is attached to a chart. This software then monitors the price action round the clock 24/7 and only trades when the conditions as programmed in the software are met. New traders are told over and over again that trading with a robot is very easy. Just install the robot on the chart in just a few minutes and that’s it.

The robot will do the trading for you and make money for you while you sleep. Nothing is further from the truth. Most people fail to make any money with these robots and even if they do, it’s just break even. You see,the problem with these robots is that they have been programmed to trade only certain market conditions. So, let’s say the market becomes highly volatile due to the release of a breaking news, the robot will have no clue how to behave.

This was never programmed into the robot so if it had an open trade most likely it will end up with a loss. What this means is that these robot cannot deal with the unexpected market conditions. However, as a manual trader, you are trained to deal with different market conditions and if the trade has started to go against you, simply cut your losses and trade another day.

To be successful with a robot, you have to have good knowledge of forex trading. Don’t fall into the trap that the robot does not need any monitoring. It does. On the other hand, you can find, very good manual trading systems that are very easy to trade and only requires 15-30 minutes to make one trade. There are other manual trading systems that are set and forget. You only need to enter the trade and that’s it. The trade will either hit your profit target if the market cooperates otherwise, the stop loss will be hit and your trade will automatically close.

So, in the beginning don’t fall into the trap of forex robot trading. Learn forex trading. Master a good manual trading system. Make money with it consistently. Once, you have understood the basics of forex trading and mastered technical and fundamental analysis, only then think of automation.

When you do that, first back test and forward test the robot thoroughly on your demo account. Try to understand how it behaves under the different market conditions and only then trade live with it. Learn to blend your manual trading skills with automated trading. You will get much superior results!

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