One of the most prominent trends in the Forex market over the past few years has been the creation of dozens, if not hundreds, of Forex trading robots, automatic software programs that trade the market on your behalf. These have become so common that there are no even competitions which rank new robots (such as the Forex Robot World Cup).
The advantages of using a robot are obvious: it’s easy, quick, it works for you, and it can trade for longer hours.
Thousands of traders are using one robot or another with varying degree of success. Some experts claim that these robots are all useless. I can’t agree with that as I know how much success some traders report having with some of the more well known robots such as Fat Turbo, for instance. However, I have often voiced the opinion that those depending solely on a robot to do their trading for them are not really becoming better traders.
I actually believe that Forex Robots can even do you harm, if used in the wrong way. I believe they can actually make you stupid and childlike in your trading.
Again, I’m not disparaging robots as a whole. Some of them are legitimate and can be used to trade the market. However, there’s no denying that the thought free process of trading that they offer can make even the smartest trader into a thoughtless automaton who follows the advice of others blindly.
Using a robot makes it easy to stop thinking, which is my definition of being stupid. You can just sit back, let the robot trade for you, and hope for the best. You’re not learning anything, you don’t know why somethings work and some don’t, and you’re not really a trader, you rely on some machine.
Bill Poulos, creator of Forex Nitty Gritty, and an expert I respect a lot makes the distinction between dependent and independent traders. A dependent trader relies on a robot or a signaling service to do all his trading for him. If they stop working or grow obsolete, he has to start over. An independent trader gains knowledge about Forex. This trader works with a system he can understand and it’s easy for him to find or devise new ones in the future whenever the need arises.
An independent trader has a greater long term success chance than a dependent one. It’s that simple. I would also venture that a dependent trader is a more stupid trader, at least as far as his Forex education is concerned.
If you are using a robot (and it’s perfectly alright to do so) then don’t make it your only tool. It’s a short term game if you do. Make sure to continue learning more about Forex and to develop your independent trading skills. It is the best advice I can give you.
In the previous post I suggested signing up for Bob Iaccino’s series of complimentary Forex classes. You can still do so here: Forex Ultimate System Complimentary Classes
