Do Automated Forex Trading Systems Really Eliminate Risk
We have heard it all before, but can any forex auto trader really make these promises.
I have been trading for 3 yrs, lost thousands, and studied for hours a day, year in year out.
If I could find such a product I would certainly be interested.
A few months ago, I finally decided to call it quits as far as my forex trading career was concerned.
I had tried everything, and I do mean everything.
Money spent on courses, books, videos outlining technical and fundamental information, and my pride and joy, a giant screen to give me the clearest possible view of the daily volatility that was slowly sucking me dry of funds.
Unlike the stock market, superannuation investments, artwork, or property, the forex market is an incredibly lucrative market in which to prosper, due to an ability to make profits in either direction.
Leverage is used to enhance that profit taking ability, which is fine when things are going your way, but devastating should you misinterpret the information that determines the direction in which you trade.
The array of indicators that fill books are too numerous to name here, and many of them have been created as a way to market yet another trading tool that will give you a heads up.
There are also no end of books telling you how to psychologically prepare yourself for the volatility, but I can testify to the fact that nothing can prepare you for the kind of volatility we have seen in the markets in the past year.
I have literally seen a currency moving in one direction quite steadily for some hours, and within seconds turn and wipe out my profit before I even register that it is happening.
And that is when I am sitting in front of the screen.
I could give you horror stories about what can happen if you leave the room to get a drink, or answer the door.
The forex currency market is the largest market in the world, turning over trillions of dollars.
The volatility it is experiencing at the moment is actually beneficial, allowing many more trades in both directions.
With manual trading however, this volatility can mean that indicators will lag and markets will have moved quite a way before they catch up.
This makes them unreadable in some cases, and certainly inconsistent at best.
To find a proven, consistent, and stress free system to take advantage of the unique opportunities that forex currency trading can provide, is certainly of great interest to me.
What is of equal interest, is the ability to test a system completely free of risk, by testing for as long as you like on a demo account.
That is an account that allows you to trade in real time, without actually risking any money.
You can see with your own eyes, how your chosen system will perform before applying actual funds.
There is no time limit on how long you research a system before going live.
You wont get those guarantees with the stock market at the moment.
I personally don't believe in being taken in by the hype of a product being guaranteed to work until I have put it to the test.
You would have to expect that with the technology and computer programs, designers have access to, that there would in fact be robots in development that show outstanding results.
So How do you go about deciding which product to purchase, if you take the sceptical approach and consider all of them failures until proven otherwise? Well you have to look for one that is affordable, easily understood, and clearly directs you to test it out on a demonstration account before going live.
At least the promoters are not afraid to have their product fully scrutinised.
Beware of anything where you pay up front for results you cannot replicate without cost to you.
And always purchase such products knowing that you have made an informed decision by reading carefully the information provided.
This advice is really applicable to any product you purchase that comes with guarantees to make money.