Why Forex Newbies Shouldn't Use Robots

Trading in the Forex market isn’t an easy process. You’ll have to learn a lot about fundamental or technical analysis and about various nuances of trading and currency market in particular. The popular Forex software won’t help you with this. It’s quite a incorrect way to learn, especially if you are fresh new to Forex market. The automated program, even if successful, should be set up with understanding and optimized according to the changing market conditions often. A Forex newbie more often isn’t capable of doing so without enough experience.

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

For a new Forex trader it always looks appealing to configure the Forex automated software to operate on all currency pairs present in the broker's terminal, but the more instruments it trades the more tweaking and fine-tuning it will require. And the Forex newbies aren’t usually able to follow so many currency pairs at a time. Professional Forex traders recommend focusing on one or a maximum of two currency pairs at a time to get more understanding of how the Forex trading works.

The other problem is created by the currency trading brokers. Not all brokers can technically accept trading using robots, while some of them just prohibit it and others restrict the functionality offered by such software. If at some point you decide to begin trading with some automated expert advisor you’ll need to do a thorough research on currency trading brokers, finding the one that will allow Forex robot with its system of trading.

The major part of the Forex software on the market is paid and is sold by the not-so-honest con men. They promise a success but usually deliver losses (with a lot of cases of a complete account balance loss). Spending funds on such trading software is an outright waste. If you are sure that you need to get some software for currency trading it’s always better to opt for a free one. Anyway, paid Forex expert advisors are often based on the free versions – their “authors” just use a good-sounding name to it and a high price.

If you manage to start your automated foreign exchange trading – be it with a free expert advisor or a paid one – it’s always more prudent to work with it on a paper trading account first. With a practice account you don’t lose real money, but you’ll be able to see how your trading software works. Although the trading execution can be different on real accounts of your broker, the practice trading will offer you some basic hint on the future results.

The last, but not the least in its importance, problem of employing the automated programs for Forex trading is that such software should be running constantly without any interruptions. For that you’ll possibly require a dedicated computer called VPS because your home computer will probably require rebooting and restarting every so often. VPS can be pretty expensive and also require some experience to manage. For a newbie trader it will be a too difficult (or too expensive) task to set up a Forex VPS with a functioning Forex robot running on it.