Can You Actually Make Money With Automated Forex Trading?
Automated Forex trading is an interesting concept that has many potential investors wondering if it is legitimate
. After all, you are getting into this line of investment to create a lifestyle. Automation makes it seem very easy. This is why you have to selective about how you go about the process.Anything that uses automation is going to have a set system applied to it. This is a positive as well as a negative factor in your overall plan. A set system is based on the highest probability that the best outcome will happen. However, there is no room for creative thought or sudden flexibility. This is why there are still variables even when you are talking about the use of automation.
What works is the predictable factors. When a system is in play and there are no variable factors then automation does a good job of selecting high probability currencies and trades. The idea of "set it and forget it" can be one that often becomes a little misleading. This can work when the larger proportion of trades are selected at the highest rate of probability and no variables enter the picture. This does not happen all the time.
What will not work is consistently believing that you can rely fully on automation. Unless you have money to burn you need to be able to interface and sometimes interfere with the system. This is where many new traders have trouble. If a system is supposed to work, trusting your instincts or your knowledge enough to interfere can be a difficult step. Many people have to lose against their better judgment on numerous trades before they begin to trust their own instincts.
For the new trader, the idea of automation seems like a wonderful idea. It can be. However, it really should not be used as a replacement for education in the Forex industry. If you have not taken the time to learn all you can about how trades happen and what influences certain outcomes, you will not know how far to let the automation take over. You also will not understand why some trades do so well and others do not.
For the new trader, the use of automation can be a good tool for learning. It can also become a crutch that is used over one's own personal thought process. The most successful traders are those that can combine the automation with their own ability to make good trades.
There is room to make the money that you are hoping to using a system like this. Different systems are going to be of different quality, which is another variable. If you have selected a high grade system that has a very high range of accuracy, then naturally this is going to work better.
Automated Forex trading is one method used to make money online with currency trades. There are other ways to accomplish this goal as well. How you approach your goals is going to be a matter of choice and comfort level. A combination of approaches may very well be warranted.
by: Mary Robins