Wednesday, January 13, 2010

Automated Forex trading, does it really work?


Anyone that is seriously interested in Forex trading, either full time, part time or as a side job and did their research on the internet, has probably come across something called automated Forex trading in one form or another. Join some groups on Facebook and you were probably bombarded with several advertisements about how to 'generate loads and loads of cash' overnight trading Forex. Just pay them the 'small fee' of only $199, oh wait, there is a special just for you today, lucky you, today only it's half off so for just $99 and it's yours! The portal to financial freedom awaits! Just start up the system and it will do all the work for you! That sounds amazing! It does, really!
Well, don't fall for it. Think about it. If their program was so incredible, why wouldn't everybody use it? If they claim that the returns you get, let's say 30% or higher or even if it was 20%, sign me up! I would sell this software package to so many people you wouldn't believe. Let's go door to door and let everybody know! Who doesn't want easy money with only as little as $100 to invest. If that guarantees you financial freedom for the rest of your life, what are you waiting for?
As you may have figured out by now, it's all a scam.
I am sure that once in awhile their forex robot has it right, and there even may be streaks here and there. But the consistency of profits return, especially for a lifetime, is no where to be found.
The 'proof' you see in some of the examples given by those automated forex websites that includes balance sheets of the profit the robot has made is nothing more then a smart photoshop person that is able to enter their own figures in your favorite trading platform. I actually cought one myself, being in graphic design for years, a blurry inconsistent font type just below the actual trading software image.

Whether you like it or not, investing in the markets, if that be forex, stocks, bonds, mutual funds, ETF's, commodities or any other type of investing, requires some human brain power. It's hard work, especially in the beginning to learn all the basics and beyond, to understand technical and fundamental analysis, what it is like to trade under pressure or how to handle sideways markets.
That's why trading is not gambling. Gambling is easy, trading is not.
Don't get me wrong, a forex robot sounds fantastic! But only the creators and marketers of that robot become wealthy by selling it to people that think that automated trading actually exist.

I hope I have reached at least a few people not to make a mistake to actually buy this type of software, no matter how great the package (and believe me, they make some fantastic front covers!, example above) may seem.

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