Robots are taking over the financial world. We’re not talking about cyborgs and androids ala Terminator; we’re referring to Forex bots. But hold those thoughts of the Jetson’s Rosie or R2D2. These Forex growth bots are computer programs with a highly sophisticated algorithm to figure out trade options. A user just needs to activate the program and let it do all the trading decisions. This trading strategy has its pros, but it also has numerous cons. Let’s learn about them below:
How Forex Bots can Help
The great thing about having a robot do your currency trading is that all you need to do is activate it. You let the bot do all the mathematical calculations to come up with the best trading options. You can then just leave it to do all the dirty work while you get on with your life. The Forex bot offers Forex traders convenience and ease of access. You just have to check how your bot is doing from time to time.
How Forex Bots can Fail You
Here’s the rub: robots still can’t replace humans. These automatons can’t think for themselves. Yes, they can come up with really sophisticated calculations which can lead to better trades. But these bots can’t assess risks. The Forex market is very volatile and currencies can change rates in a heartbeat. The news is especially important in the Foreign Exchange market in that they can affect currencies when they hit. Bots can’t trade news and therefore can’t get out of bad trades (when they happen). Human intervention is definitely needed in order to get out of losing trades.
How Forex Bots can Screw You
The worst that can happen is when you fall for a Forex bot scam. There are purveyors of the bots that claim to be close to 100% accurate. These scammers trick new investors into thinking that a software or program can do all the hard work for them. It’s either that these bots don’t live up to their potential or they just don’t work at all. What’s worse, Forex bots are being sold at very high prices, often fetching prices up to $5,000.
Avoid these Scams at All Cost
The easiest way to avoid these scams is to never invest in a Forex bot in the first place. Doing everything manually is still the way to go. Software can be helpful but never trust in one that claims to be close to perfect at predicting the next big score. You should be the one making the decisions and not your computer. Rather than investing in a bot, your money is better spent usingit as part of your Forex trading budget.
Now you know all about Forex bots. Be aware of the advantages and disadvantages, and try and stay away from them – they’re not worth your time. If ever you’re considering getting one, make sure you do a lot of research before executing the purchase. Forex trading takes a lot of risk analysis and fast thinking – two things a computer just can’t do better than humans.