If you're new to the concept of automated Forex robots that trade the Forex markets for you on autopilot, you might be just a little bit skeptical about the whole thing. After all, it sounds too much like a scam, and if it's so easy to make money with these robots, why is not everyone doing it … right? The truth is, while these robots can be operated by anyone regardless of their experience in the markets, there is some level of sophistication required to identify and use them to profit from the Forex markets. By the end of this article, you'll have the necessary knowledge to start winning with automated Forex robots.
Common Myths About Automated Forex Robots
The most common myth about automated Forex robots is that all of them are scams and will never work. While there are a lot of junk robots being passed off as the real deal out there, there are reputable robots that do deliver the goods as well. Obviously, you can not just take the claims of any Forex robot seller about their system as the gospel, so you need to do your due diligence to identify the very best automated Forex robots before you commit any of your money to buying one.
Another widespread myth about automated Forex robots is that they can not possibly exist, because otherwise all the banks and hedge funds would have sack their professional Forex traders and be trading with them by now. The reason banks and hedge funds do not use commercial trading robots is that they're a limited opportunity: limited in the sense that it can only handle a certain level of capital. Most automated Forex robots you'll see advertised for sale can only deliver good returns for up to a million dollars in capital, so they're useless to anyone looking to trade with more than that.
Winning With Automated Forex Robots
If you're starting with a small amount of capital ($ 1,000 to $ 100,000), automated Forex robots are perfectly positioned to take advantage of this "unwanted" opportunity. That said, you'll hear many stories about people losing their money trading with robots. Automated Forex robots can typically deliver a healthy return of 5-10% a month, but the problem comes when greed kicks in and traders crank up the risk levels to chase 50% or even 100% returns in a month. Risk control in Forex trading is an art in itself, and the rule of thumb is that you should never risk more than 2-4% of your total trading account on any given trade. Otherwise, you may get bigger returns, but you'll almost certainly wipe out your trading account one day.
The key to succeeding with automated Forex robots is to be conservative in your risk level by limiting the amount you risk on any given trade to 2-4% of your trading account. While you will not get rich overnight, you'll be able to steadily grow your account and create a nice Forex passive income for yourself. In time, as you invest more money into your Forex trading and allow your profits to compound, you'll have a much larger capital base and enough Forex passive income to improve your lifestyle or even be financially free altogether.
Source by Thad B