FOREX Software Bringing You Down (Financially)?

If you enjoy using software, FOREX may not be the best place to do so. Using trading software in FOREX is a very popular method to trade. Thousands of traders use FOREX software programs to do their trading for them. These programs are also referred to as expert advisors or EA's. However, they are not without their pitfalls, here are a few common problems with FOREX software. 

No Human Control

The idea of FOREX software is great. Think about developing a program that could analyze the markets for you, decide how much you should safely trade, and then place the trades for you. You could use the help of computers to make substantial amounts of money for you. In theory, this is what these software programs are supposed to do for you. However, more times than not, they do not make money. 

One big problem with these software programs is that they do not use common sense. They are programmed to do a certain job and they will do that job until your account is completely gone or you turn it off. For example, you might be able to clearly see that the price of a particular currency pair is at its highest level in years. Therefore, you are very skeptical about the pricing going much higher. You would place a sell order if you were trading manually. However, the robot just looks at the limited information that it has and decides that a buy order would be best. As you thought, the price went back down and you lost money. Software programs are unable to see the big picture. 

User Error

Another common problem with FOREX software is that users of the software do not fully understand how it works. They do not know how to use it effectively and because of this, they end up losing money. They do not use it properly and they make mistakes with the software. Many programs do not have the level of customer service behind them that is required to make the programs work for the average person. 

Limited Trading Methods

Another common drawback to these expert advisors is that they are limited to trading in one particular type of market. The FOREX market is continually trading and never completely stays the same. Therefore, a trading method that works one month, may not work at all the next month. While individual traders can learn from their mistakes and adapt with the market, trading software does not adapt. It continues to trade the way that it was programmed to trade and never adapts to the market. 

If the market conditions change and never change back, you could have yourself a useless piece of software. The software that you bought was optimized for a market that no longer exists. Many software programs work for a while and then become obsolete. 

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