Forex Robot Myths – if You Believe Them They Will Lose You Money
Forex robots are very popular but most don’t make money and rely on clever ad copy which promotes 4 myths which are not true and if you believe them, you will lose – here they are. Most automated Forex trading system sales copy promotes the myths below, so make sure you avoid any system that makes ANY of these claims.
1. Back Tested Track Records Will Repeat in Real Time
So how can a Forex Robot have a better track record than the world’s top fund managers, who are paid millions in salary and you get it for a mere $100.00 – Why so cheap?
Most track records promoted are simulations backwards, knowing the closing prices! Well that’s hard let me see…I know EXACTLY where prices went so lets just buy and sell at the highs and lows and make a fortune. We can all do this but problem is can’t spend paper profits.
Of course a back test means nothing in terms of future profits, as you don’t have the advantage of knowing the prices in advance when you trade in the brutal real world of Forex trading.
2. Periods and Size of Losses will be Minor
Not only so you get huge gains you don’t even see many losses or losing periods that last long well that’s not the real world and can only be done in simulation. In the real world, even the best Forex trading systems lose for weeks or months on end and I have never seen a drawdown of less than 25% on even the top systems.
If you want to trade an automated Forex trading system, you will need to appreciate losing periods are part of the game and you need to focus on long term results.
3. You Don’t Need to Know Anything About Forex
You need to know how and why your system will make money and this means you need to know how Forex prices move and how the logic of the system works.
You will with any Forex trading system have losses and you need to have discipline to trade through a losing period, until you hit a home run. To do this, you must have discipline and this is based on knowledge and confidence so you need to know what you are doing to stay with your system.
4. Robots are Better than Humans
Robots are only as good as the human who has programmed them! Both trading with an automated Forex trading system or doing your own analysis, have their merits but a Robot is not superior at all.
There is a lot of rubbish written about complex mathematical formulas being the route to success but as the markets don’t move to mathematics it’s of limited use. When trading an odds market, simple systems work better than complicated ones. If you see a system by a nerd, talking about how he has cracked the code of market behavior, move on.
How to Win With Forex Trading Software
Get a simple system, which has a real time track record you understand, can trade with confidence, be realistic that you will face short term losses and judge your system over the long term.
If you do this you could soon be making big profits in under 30 minutes a day.
by Kelly Price
About the Author:
1. Back Tested Track Records Will Repeat in Real Time
So how can a Forex Robot have a better track record than the world’s top fund managers, who are paid millions in salary and you get it for a mere $100.00 – Why so cheap?
Most track records promoted are simulations backwards, knowing the closing prices! Well that’s hard let me see…I know EXACTLY where prices went so lets just buy and sell at the highs and lows and make a fortune. We can all do this but problem is can’t spend paper profits.
Of course a back test means nothing in terms of future profits, as you don’t have the advantage of knowing the prices in advance when you trade in the brutal real world of Forex trading.
2. Periods and Size of Losses will be Minor
Not only so you get huge gains you don’t even see many losses or losing periods that last long well that’s not the real world and can only be done in simulation. In the real world, even the best Forex trading systems lose for weeks or months on end and I have never seen a drawdown of less than 25% on even the top systems.
If you want to trade an automated Forex trading system, you will need to appreciate losing periods are part of the game and you need to focus on long term results.
3. You Don’t Need to Know Anything About Forex
You need to know how and why your system will make money and this means you need to know how Forex prices move and how the logic of the system works.
You will with any Forex trading system have losses and you need to have discipline to trade through a losing period, until you hit a home run. To do this, you must have discipline and this is based on knowledge and confidence so you need to know what you are doing to stay with your system.
4. Robots are Better than Humans
Robots are only as good as the human who has programmed them! Both trading with an automated Forex trading system or doing your own analysis, have their merits but a Robot is not superior at all.
There is a lot of rubbish written about complex mathematical formulas being the route to success but as the markets don’t move to mathematics it’s of limited use. When trading an odds market, simple systems work better than complicated ones. If you see a system by a nerd, talking about how he has cracked the code of market behavior, move on.
How to Win With Forex Trading Software
Get a simple system, which has a real time track record you understand, can trade with confidence, be realistic that you will face short term losses and judge your system over the long term.
If you do this you could soon be making big profits in under 30 minutes a day.
by Kelly Price
About the Author:
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