2 Harmful Myths About Automated Trading

Automated trading, that is, forex trading using bots, has made the process easier and more accessible to novice traders. However, this has been dubbed as a silver bullet, which can help traders make profit right from the get go. This isn’t true though. And as wisecracking traders would say, “if these bots really worked, then everyone in the market would be rich.”

But don’t misunderstand us; automated traders or bots have a place in the market. The only thing is that these bots are surrounded by myths that could harm the chances of success of any budding trader, so let us get those out of the way. Let’s debunk myths like…

1. 1.     Bots are a get rich quick scheme. If you’re a new trader, you would do yourself a great disservice by expecting to get rich overnight in the forex market. And you would even make it worse by thinking that bots would help you get there. You would only end up frustrated and penniless in the process. Rather, how quickly you will make a profit depends a lot on yourself, on how aggressive you are, and how well you study the market. That said, bots aren’t also…
2. 2.     A foolproof way to make solid decisions for you. Sure, bots help get emotion out of the way of trading currency. But that does not mean that it will make completely foolproof profit-making decisions for you. In the end, you will still need to involve yourself in the process if you wish to maximise your profit potential. Aside from that, it does help to understand how the market works and the current situation in the markets where you operate, as there are things that bots cannot factor in when making decisions on your behalf.

All in all, you cannot rely on the bot completely if you really wish to succeed in the forex market. Again, a lot depends on you since you will be the one making the decisions, and those decisions should be based on your analysis of the market and the trend it is currently experiencing. Bots are simply tools to help you make better decisions, so it is still important that you try to gain experience first as this will be your more potent tool than any other bots being used in the market. Only once you combine your experience with the aid of bots will you be able to make consistent profits from the market rather than simply sporadic ones.