The global currency market, volatile as it may be, is extremely popular among investors, not only because of its liquidity, but also because it operates continuously. The avid investor may trade currencies very frequently, but what about those with very little time to spare? Here’s a surefire solution for the busy, yet successful, investor…
Automated trading – the latest trend:
A Forex robot is essentially a computer program that automates transactions for users, based on technical parameters specified to it by the user. Working on computer algorithms, the program decides the timing and quantity of what is being traded, without having to depend on humans. Forex robots can also analyse market trends and automatically make suitable, ‘smart’ decisions for the user Money robot.
What are the advantages?
An automatic trading program has far more flexibility than a human trader, when it comes to identifying and acting upon new market opportunities. Moreover, as the program cannot be affected ‘psychologically’ by losses or downward market trends, unlike humans, its chances of making rash or hasty decisions are very less. The user does not have to be aware the most profitable currency-trading pairs, or decide which currencies to trade and when to trade them. A good Forex robot consistently makes a certain amount of money, while ensuring that there is very little loss (draw down).
Are there any drawbacks?
If you like to stay in control of your money and investments at all times, then automated trading may not suit you. Tampering with the technical parameters and other criteria specified to the software could make it malfunction, and possibly even make you lose money. Robots are also quite expensive, and if you plan to run it on your own computer, you will have to run your computer day and night to enable the robot to trade continuously. Running your robot on a virtual server is another option, but that will be quite an investment itself!