Trading Forex might be the most competitive business in the world but even so many people have changed their lives just by accessing the online market place. The successful traders have worked hard to master the art of trading. They never rely on an automated trading process since it ruins their trading performance. Some of the trading bots indeed have the unique ability to predict the price movement with a high level of accuracy, but still, you should rely on the manual trading method.
Let’s find out some of the key reasons why you should never rely on trading bots. After reading this article, we can assure you that you will never love to hear any lucrative offers from the trading bot service provider.
Flaws in the bots
The trading bots are usually developed by the MQL programmers. They might be very good at programming but do you think that they can understand the market’s nature. The obvious answer is no. The professional traders might help them but they will never understand the core concept of trading. As a result of this, they always get a faulty product at the end. For this reason, most of the trading bots fail to make a profit in the long run.
The Forex market is dynamic. You need to keep pace with the changes in this market and only then you will be able to make a big profit. Most of the time, naïve traders in Singapore think they know all the details of this market. They start trading with some right rules and blow up their trading account. Just like this, the bots are just a fixed sets of rules that trade on behalf of retail traders. So, if you think you can rely on trading bots, you are making a big mistake. Be prepared to lose your entire trading capital.
Nothing in this world is perfect. When it comes to trading bots, the chances are very high that it will contain major flaws and technical glitches. When you try to trade with a faulty instrument you risk your entire investment. To get access to the best trading environment, the pro traders are choosing an elite broker like Saxo. If you trade the market with a high-end broker it won’t take you much time to deal with the losing trades. A few good trades can cover your trading costs. Just like this, you should focus on the manual art of trading. Forget the fact that bots can trade the market.
The key reason why you should never rely on bots is because of the fundamental factors. The naïve traders are losing most of the trades since they don’t know the perfect way to analyze the news factors. When it comes to trading bots, they can never understand the sentiment of the market. When the market trend changes, things start to become worse for the trading bots. It loses too many trades frequently and ruins your trading performance. Some bots providers might say they have developed a unique code that can understand the market sentiment. But if this were true, it would be a groundbreaking in the AI industry.
Makes you vulnerable
Let’s assume that your bots are perfect and you making money. If you stick to such bots for a long period, you will never have the skills to deal with the complex market condition. Eventually, you will lose most of the trades when the bots fail. Instead of depending on the trading bots, you should rely on a simple approach by which you can make a small profit. But make sure you focus on consistency and your trading skills. If you can do that, you won’t have to rely on the bots.