Automated trading daily - has the image of low risk and high profits as forex robots are plugged in and profits come with low risk and big long term gains. - But is this possible lets look at how an automated trading day and high profit day and see if its reality.
There are numerous forex robots that promise you that you can make big gains with low risk and you don't need any experience either - just plug in and the profits come and they even show you fantastic track records to back up their claims - but there's a problem. See a track record of gains in day trading and you will see this warning at the bottom take a read:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
What does it mean? Well you have probably already guessed it - the track records are simply made up, meaningless, simulations in HINDSIGHT!
Let me see... if I had tomorrow's price today, how rich would I be? VERY! But that's not the reality of trading forex.
Would you trust a golf instructor who had never played golf?
Of course not - so why would you trust an automatic forex day trading system which hadn't been traded and made a profit long term? Well thousands of traders do and they pay for it with a wipeout of equity.
Day trading is a good story - but that's all it is a story which, doesn't add up in reality and is based on ridiculous logic.
There are millions of people all trading FX and they all make the price and the question you have to ask yourself is:
How on earth can you predict what this vast mass of people will do when they all have different skills, motivations and are subject to their emotions and even harder what they will do in a matter of hours?
The answer is simple - you can't.
Automatic forex day trading is good theory but with all short term volatility being random it doesn't work.
You can prove this to yourself - find a forex robot that scalps or day trades and then look for the disclaimer saying it's a simulation - look and you're bound to find it.
Forex trading can offer you big profits - but making money is never easy and if you think about it - you wouldn't expect it to be, with the rewards on offer.
You need to do your homework and learn to trade longer term. An automated trading day system is another phrase for a losing system longer term - because you can never get the odds on your side.
Trading is an odds game, no odds on your side no profits - PERIOD.
