The usage of Forex robots is quite popular amongst traders. Some investors love automated trading and use it to double their profits. While on the other hand, some people are not huge fans of these Forex EAs.
Because of everyone’s different opinions, tons of misconceptions and myths circulate in the Forex world.
Many beginner traders pay attention to these false facts without verifying their accuracy. This is the primary reason Forex EAs have attracted a lot of notoriety, and people consider it a scam.
However, let us assure you that Free Forex Expert Advisor is not a swindle.
Today’s post will discuss the top 5 major myths about Forex EAs. We are sure that after reading this post till the end, your doubts about this powerful tool will be crystal clear
So, let’s begin debunking the top 5 myths about free Forex expert advisors:
Debunking 5 Top Myths About Free Forex Expert Advisor
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Forex EAs Prevent Loss
Do you also believe that a Forex EA can safeguard you from all the losses and always win trades?
If your answer is YES, we feel terrible to inform you that it is nothing but a misconception.
Forex robots are helpful in protecting you from risky situations. However, they do not guarantee to avoid loss every time. We are sure you must have seen many Forex EAs claiming a win rate of 100%. Such Forex EAs are a red flag in your trading journey.
The Forex market is one of the most ruthless trading markets in the world. It is highly volatile and is affected by several factors, including politics, economics, and other social issues. Thus, computerized software cannot safeguard you from adverse trends every single time.
Let us give you an example here:
Can a blood pressure machine save you from high blood pressure? Your answer would be no. That’s because the device can only detect the problem; It cannot treat it completely. A similar case is with Forex EAs; they can see risks and identify profitable opportunities. Ultimately, how you trade depends upon your Forex trading knowledge and experience.
Moving on to the 2nd absurd misconception:
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Forex Robots Guarantee 100% Profitable Trades
Let us give you a million-dollar advice: There is no room for guarantee or certainty in the Forex market.
If anyone tries tricking you into believing that their signals or Forex robots can generate 100% results, run away from them. Such claims are only marketing gimmicks that tempt novice traders to buy these tools.
Forex EA is undoubtedly a beneficial tool for traders. It can trade for 24 hours straight without getting tired or irritated. Moreover, its advanced features can save the trader from huge losses. But, at the end of the day, a Forex EA is an electronic program and cannot compete with human intelligence. Moreover, it cannot assess the market situation due to the external factors of politics and economics.
Therefore, never invest in a Forex EA, believing it will give you guaranteed winning trades. Because trust us… that’s not going to happen. Even highly sophisticated programs can generate a trade that can result in losses, which is entirely okay.
Up next on number 3, we have:
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You Will Become Rich Overnight!
This one is the most popular myth; unfortunately, many rookie traders get trapped into believing it.
Many new traders think of automated trading and Forex EAs as a genie that can fill their accounts with a surplus of profits. They spend their resources on expensive bots hoping to make a ton of money.
As an intelligent trader, you must understand that Forex robots are not magical lamps. It’s merely a myth that Forex EAs can make you wealthy in a short span of time.
Remember, succeeding in the Forex market is a learning process. You cannot possibly become a millionaire by just entering the market and relying on an algorithm-based program.
The only way to make your mark in the market is to keep learning about the Forex market, being updated with the world news, and experimenting with different trading strategies. Once you have mastered the true art of trading, you will be better positioned to set the parameter of your Forex EA to generate more profitable trading opportunities.
Moving ahead, we now have another interesting myth:
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Forex Robots are Unsafe
With the rise of online frauds, hacking, and cybercrimes, it is natural to feel anxious while using a new program.
Security concerns are entirely understandable for traders. But linking them to Free Forex robots is bizarre.
Forex robots are far more secure and pose no security risks to traders’ accounts. They simply use your trading data to forecast market trends in the future.
As a trader, you only need to ensure that your Forex robot is not requesting permissions for data unrelated to its function.
The final myth about Forex robots on our list today is:
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Paid Forex EAs are More Effective than Free Ones
Most people have this odd perception that things offered for free might not be as effective as those paid for.
The same is true for Free Forex robots.
You may question Free Forex EAs’ efficiency due to the high cost of the paid ones. But we assure you that it is not what you think. Even the priciest Forex robot might not deliver the best outcomes.
Every Forex robot, whether paid or free, is programmed to analyze live trades by performing complex numerical computations of past trades.
Hence, always look for quality in your automated trading product rather than focusing on price. To ensure that your free Forex robots produce the same results as paid ones, look for the following features before using the Free Forex EA in your live account:
- Have a proper customer service
- Good user reviews
- Executes long-term profitable trades
Conclusion
The Forex arena is growing with leaps and bounds, and many passionate individuals enter it to earn lucrative profits. However, like any other field, the Forex market requires you to learn and practice trading skills before you dream about minting money.
A Forex EA can be your helpful friend in easing your trading journey. However, you cannot trust it blindly. You must be vigilant about setting up your robot and adopting strategies to safeguard your investment under unfavorable market conditions.
On the other hand, thinking that Forex EAs are a rip-off isn’t justified either. A highly sophisticated program can perform mind-boggling calculations in a matter of seconds. Similarly, by using the advanced features of a Forex robot, you can get an insight into the upcoming market condition. It can help you devise a robust strategy to combat adversities and maximize your trading account.
So, to conclude, Forex EAs are like an extra pair of helping hands for traders. But blindly trusting them is not a smart move.
What other myths about Forex EAs have you come across? Let us know in the comments below.