Most Expert Advisors Are Not So Successful
I don’t say that you shouldn’t use trading robots at all. Some of them are capable of making profits, though small ones and not constant. Let's think statistically. The success rate in the foreign exchange market is 5-10%. Now think about the percent of EAs among them?
There are several main problems with trading robots:
- Lack of a risk management system. This is one of the main causes of the collapse of inexperienced traders in general. To succeed in Forex, you need a step-by-step plan that you will clearly follow. Most Advisors open transactions at random or use dangerous techniques, such as doubling of the lot size after a failed trade.
- High transaction costs. The strategy of many Advisors is based on the opening and quick closure of a large number of trades. As a result, the cost of transactions can reach dozens of dollars per day which cannot always be covered by profits from trading robots.
- Advisors quickly become obsolete. When you trade manually and keep an accurate trading journal, you can immediately notice when the strategy began to bring less profit due to a change in market sentiment. You will constantly have to analyze the work of your robot, otherwise, you will not notice how you start to incur losses.
- Low profit. Only aggressive Advisors can bring relatively high profits. However, due to the high risks, not everyone uses them. As a result, traders choose safe robots that bring such insignificant income that they become useless.
- Advisors don’t take into account market sentiment. Trading robots are just a program. They don’t feel the mood in the market as a trader can. They don’t take into account the economic indicators. As a result, in any case, you will have to constantly monitor your Advisor to close clearly unprofitable transactions. Then, what's the point of automated trading?
Now you see that the disadvantages of trading robots exceed their benefits. Maybe you should give preference to manual trading?
No Mentor Can Turn You Into Professional
If you think that a good choice of a teacher will lead you to success in Forex, then you are deceiving yourself. A mentor can help you at first when you need to filter a huge amount of information in order to receive only the correct data about Forex. You may also need one when switching to real trading in order to adjust your trading system. However, from then everything will depend only on you.
As in any other type of activity, you can become a professional only thanks to the experience gained. It is believed that for this you need to spend 10 thousand hours trading. You can succeed only through trial and error, constant work on self-discipline, and learning from your own mistakes. So it's better to invest personal time and effort rather than rely on the help of a Forex mentor.
There Are Many “Magic Beans” Sellers On Forex
Few people want to spend thousands of hours trading before making real money. Many begin to look for easier ways. Thus, some begin to offer strategies for “quick profits on Forex,” while others buy them.
Unfortunately, as in the fairy tale about magic beans, the thirst for profit can play a trick on you. It has long been known that on the Forex, there is no “holy grail” that would work for any trader and bring money for sure. Even the most successful strategy requires additional market analysis and constant adjustment.
If you are in search of a trading system, it is better to dwell on proven strategies that are used by millions of traders and that are in the public domain.
If you still decide to purchase some kind of program, then check what exactly you are giving money for. Some particularly entrepreneurial mentors offer free training and then require huge investments for the strategy itself. Others offer only theoretical information without practical assistance.
When buying a program, make sure that the package includes further support. When you continue to communicate with the strategy provider, you can ask additional questions that might help you better understand the system.
Expensive Education Is Not Always The Best One
Today, people mistakenly believe that the more money they invest in their studies, the higher will be the return. This may work for specific areas of activity but things are different when it comes to Forex.
The Internet is full of ads with numerous courses, some of which can cost thousands of dollars. However, no course can guarantee you success. You can invest a lot of money in training, and the return on it will be the same as on less expensive education. Moreover, for some traders, it’s enough to read several worthwhile $10 books from experienced traders and start making profits. And some generally use only free data on the Internet and after hard work they become professionals.
So, don’t rush to invest thousands of dollars in training. Choose carefully and weigh all the possibilities.
Final Words
Well, I hope that over the last couple of articles you have learned a lot of useful things about the Forex market and this will help you to take a fresh look at currency trading. Don’t build illusions about quick earnings, don’t take the word from sellers of 100% profitable strategies. In order to succeed in Forex, you need to be realistic and prepare for thousands of hours of hard work. However, in the end, you will be able to get all the benefits implied into working for yourself in the foreign exchange market.