Should I Start with Forex Robot?

Trading in currency market isn't always an easy process. You'll need to get knowledge about fundamental or technical analysis and about various nuances of trading and Forex market in particular. The automated Forex expert advisors won't help you with this. It's quite a wrong way to learn, especially if you are just turned to Forex market. The expert advisor, even if successful, should be configured adequately and optimized according to the ever-changing market conditions constantly. A Forex newbie usually isn't capable of doing so without enough experience.

Entering the correct program input data depending on the currency trading instrument, periodicity and conditions you are trading on is crucial. A Forex robot should be able to function in full agreement with the market. Applying it to different currency pairs will also require a tweaking of the parameters but can lead to even more gains.

For a newbie trader it always looks attractive to configure the Forex automated software to trade on all currency pairs offered in the terminal, but the more pairs it trades the more configuration and fine-tuning it will need. And the new Forex traders aren't usually have enough skills to follow so many currency pairs at the same time. Forex gurus recommend focusing on 1-2 currency pairs at a time to get more experience of how the currency trading behaves.

The other problem is introduced by the Forex trading brokers. Not all brokers can technically accept automated Forex trading, while some of them just prohibit it and others limit the functionality offered by such software. If at some point you decide to begin trading using some automated expert advisor you'll need to do a deep research on currency trading brokers, finding the one that will accept Forex robot with its system of trading.

The major part of the expert advisors on the market is paid and is sold by the not-so-honest marketing people. They promise a lot but usually deliver a little (with a lot of cases of a full account balance wipe). Spending money on this Forex software is a waste. If you are certain that you have to get some Forex robot for currency trading it's always better to opt for a free one. Anyway, paid Forex expert advisors are almost always based on the free ones - their "authors" just attach a good-sounding name to it and a high price.

If you decide to start your automated currency trading - be it with a free robot or a paid one - it's always better to work with it on a paper trading account first. With a practice account you don't lose real money, but you'll be able to watch how your expert advisor trades. Although the quality of trading can be different on real accounts of your broker, the virtual trading will offer you some basic insight on the future results.

The last, but not the least in its importance, issues of using the automated programs for Forex trading is that such programs should be always turned on without any interruptions. For that you'll probably need a dedicated server called Virtual Private Server because your home PC will probably need rebooting and restarting every so often. VPS can be pretty costly and also need basic skills to use. For a new trader it will be a very difficult (or too expensive) task to set up a Forex VPS with a working Forex robot running on it.

by Andrey Moraru

It's really easy to get started in currency trading, but it's not a very good idea to do it using a Forex expert advisor, especially with a paid one. It's better to start with some beginner's Forex strategies. Communicating with other Forex traders may also be useful during your first phase in a Forex trading field. For that it's good to use some popular Forex forum with a community of professional traders and experts.