Forex robots, commonly referred to as forex expert assistants, forex EAs, or forex bots, are computer based programs designed to help a currency trader make profitable trades more times than not.
Even experienced investors, often make mistakes or become too eager. The idea behind forex robots is that if you remove human error you will have a better opportunity to make a more consistent profit day in and day out.
But What Exactly Is A Forex Robot?
A Forex robot or FX robot is an easy to use software program that allows an inexperienced or experienced trader to participate in the highly profitable foreign exchange money market and do so from the comfort and privacy of your home with a computer and online access.
The software will manage your trades from start to finish. Essentially it is referred to as a robot because it performs all of the trading actions, except it takes human error and human emotion out of the picture.
The largest reasons people lose money while trading forex is they let their emotions become involved. People tend to 'feel' and begin to go on the 'gut' when they are speculating upcoming changes rather than study charts, look at trends, and base their trades on solid numbers.
People also tend to react quickly and harshly to big loses, and even gains, by making forex trades that the robot will never even consider. This is where forex robots help every currency trader.
Forex robots make all of their trades based entirely on the numbers. They look simultaneously at a wide variety of daily, semi-daily, and long term trends and algorithms.
A forex robot makes a trade based on what is most likely to achieve a profitable end result. When it loses a little it doesn't panic and end up flushing away even more cash; when it wins big it doesn't waste the winnings on the emotion of excitement.
Forex robots can lose money. It all depends on how it is programmed. One of the other pluses to forex robots is that they have a stop-loss feature built into their algorithm. This means that when something goes terribly wrong with the market they can be set to automatically get out of a trade. Where a person may panic and lose more money your forex robot simply stops trading without emotion and it will not prevent them from taking the next trade when conditions are right.
Bottom line, a well designed robot can make even the experienced trader more money and help them greatly reduce their losses. But for the beginner or inexperienced trader there is no substitute for a well designed Forex robot when compared to a human trader.
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