Why Newbies Should Stay Away from Automated Forex Software

Trading in the Forex market isn't an easy process. You'll have to learn a lot about fundamental and technical analysis and about various nuances of trading and Forex market in particular. The automated Forex software won't help you at this. It's a rather bad way to learn, especially if you are new to Forex. The expert advisor, even if profitable, should be configured adequately and optimized according to the new market conditions often. A Forex newbie simply isn't capable of doing it without enough experience.

Setting correct input parameters depending on the currency pair, timeframe and conditions you are trading on is very important. A Forex expert advisor (robot) should be able to function in 100% accordance with the market. Adding it to different pairs will also require a tuning of the parameters but will lead to more gains.

For a new trader it always looks attracting to set up the Forex robot to trade on all currency pairs present in the platform, but the more pairs it will trade the more optimization and fine-tuning it will require. And the Forex newbies aren't usually capable of following so many currency pairs at a time. Experts recommend focusing on one or a maximum of two currency pairs at a time to get more understanding of how the Forex trading works.
Another problem is introduced by the Forex brokers. Not all brokers technically accept automated Forex trading, while some of them simply don't allow it and others limit the functionality offered by such software. If at some point you decide to start trading with some automated expert advisor you'll need to do a thorough research on Forex brokers, finding the one that will accept Forex robot with its method of trading.

The majority of the Forex robots on the market is paid and is sold by the not-so-honest marketing people. They promise a lot but usually deliver a little (with a lot of cases of a complete account balance loss). Spending money on such Forex software is an outright waste. If you are sure that you need to get some automated expert advisor for currency trading it's always better to opt for a free one. Anyway, paid Forex robots are almost always based on the free versions - their "authors" just attach a good-sounding name to it and a price tag.

If you actually decide to start your automated Forex trading - be it with a free robot or a paid one - it's always better to test it on a demo trading account first. With a demo account you don't lose real money, but you'll be able to see how your Forex robot performs. Although the trading execution can be different on real accounts of your broker, the demo trading will give you some basic hint on the matter.

The last, but not the least in its importance, problem of using the automated software for Forex trading is that such programs should be running constantly without any interruptions. For that you'll probably need a dedicated server called VPS because your home PC will probably require rebooting and restarting from time to time. VPS can be pretty expensive and also require some experience to use. For a new trader it will be a very difficult (or too expensive) task to set up a Forex VPS with a working expert advisor running on it.


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