Automated Forex Robots Versus Humans

Traders are being replaced by automated forex robots. This is because these robots are seen to have more advantages than human traders. However, these robots have some cons, as do human traders. When choosing between automated forex robots and human traders, it is important to consider the pros and the cons of each option.

The greatest advantage of automated forex robots over humans is that they are cheaper. This is because after the initial investment, you do not have to pay anything else. Human traders have to be paid commissions and other charges – this eats up a huge percentage of the profits.

Working hours are a big problem with human traders. Forex markets are changing continuously and humans cannot keep up with all the changes. This leads to loss of money or loss of good opportunities. Automation allows automated forex robots to work even when a human is not present. All you have to do is set the minimum price below which a certain currency will be bought, or a maximum price above which a currency you hold will be sold.

Automated forex robots are convenient since they can be used day or night, all year round. This is important because of the difference in time zones. With these robots, it is possible to trade in different markets – this maximizes your profits and allows you to trade whenever you have time. There is anonymity with automated trading robots since all transactions and correspondences are done online – you can continue with your day job without alerting your boss.

Automated forex robots are more accurate than human beings. This is because they rely on data and there is no issue of miscalculations. Haman traders can make irrational decisions that are informed by emotions rather than facts.

However, automated trading robots are disadvantageous in that there is a risk of cyber crimes. This is because most of the transactions are through credit card and they are with companies and/or people you do not know. Do thorough research because some automated forex robots are scams.

Human forex traders are advantageous over forex robots in that they can use intuition or gut feeling. This is important because for profits in forex trade, there is need to make split-second decisions. These decisions are based on such things as major announcements such as release of unemployment rates, consumer spending rates, and inflation rates of different countries.

Human forex traders are able to adapt to change easily – automated trading robots only act depending on how they have been programmed. There may be need for adaptation in situations such as when there is war or when a market is collapsing.

However, human forex traders are disadvantageous in that they are guided by emotions. Such emotions include fear, greed, and hope. These emotions blind human forex traders and this usually leads to massive losses.

Using the strategies he now teaches, Marcus de Maria went from £100,000 in debt to financial independence in just 5 years.