Theoretically there are hundreds of benefits of automated forex trading software. However in reality many thing goes wrong. About 75% people looses there money using automatic forex trading system. The question is why? The first answer is they do not know how to use the software. Most of the forex traders do not give much time to learn the system. You must work for six months with demo systems before going into the actual market.
Most of the people loose their money because of their emotional problem. it is good to dream, but you also need to know the reality. You need to know when to come out of the market, when to apply stop loss. Robot will do everything for you not a good idea. You need to direct the robot what to do. You have to be the master of your robot.
The second reason of loosing money is selecting a wrong forex trading robot. Based on advertisement if you select a poor robot software no one can help you to stop loosing. Look the consistence of the product. See the best review of the forex robots and select the best one.
The response of the forex robots on international news is very poor. You need to think about that.
Sometimes, the forex trading charts are confusing, you need to learn the statistics, swings and the details of the chart. You need to know the impact of variations of different parameters in forex trading.
You need to think about the server based automated forex robots are better than the client based automated systems.
Before starting forex trading you need to define the risk / reward ratio, Support and resistance lines. You need to develop strong intuition. Normally, a master forex trader decides at advance when to trade and how much to trade. Downside protection and upside gain and exit limits are well set in advance.
In spite of of which technique is used, it is always advisable to make profit level within the price channel so that you can confirm your profit making before any price reverses.
You must learn the best practices for efficient foreign exchange trading. These best practices will gurad your money.
