Why New Traders Should Not Depend on Automated Forex Software

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Forex trading is not a simple process. If you want to succeed in the forex market, you have to learn about fundamental and technical analysis, as well as the different aspects of trading. Making use of an automated forex software won’t be able to help you gain the knowledge that you need. In fact, it is an ineffective way to learn, especially if you are a newbie. Even if the expert advisor is profitable, it should be configured and optimized properly and frequently depending on the new market conditions. A new forex trader simply isn’t capable of doing the necessary configurations due to the lack of experience.

Setting the correct input parameters based on the forex pair, conditions, and timeframe is very important. An expert advisor or robot from an automated forex software must be able to function in accordance with the market, and adding it to various currency pairs will also need tuning of the parameters but will result to more profits.

For a forex newbie, it will always be tempting to setup the expert advisor to trade on all pairs that are in the platform. However, the more forex pairs that it will trade, the more fine-tuning and configurations it will require. Usually, new traders aren’t capabale of following several pairs at a time. Therefore, experts advise to focus on one or two currency pairs, in order gain a deeper understanding of how forex market works.

Another reason why it is not recommended to rely on automated forex software is because not all brokers accept automated forex trading and some limit the functionality offered by this kind of software. If you decide to trade with the use of an automated expert advisor you will have to perform a thorough research on the best forex broker that will accept forex robot with its method of trading.

Furthermore, a lot of automated forex software sold in the market promise a lot but only delivers a little. Therefore, in some cases, this kind of software is an outright waste of money and time. If you decide to try out one anyway, better test it on a demo trading account first. By doing so, you won’t have to face the risk of losing real money, but you will be able to see how the forex software performs.

It is pretty easy to get started with trading in the forex market, but it is not really a great idea to do it with an automated forex software. Even the best forex broker would recommend to study some basic educational materials about forex first and take automated trading as a second step when you are already familiar with manual currency trading.

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