An automated trading software is an essential component for most of the Forex traders. It’s a key to success for them. As per them, they are able to gain more and accurate knowledge of the trade without involving any 2nd party help. But, if we consider the opinion of other traders. As per them, trading with automated software is equal to have a heck of a pain. Very hard to operate, doesn’t cooperate in the needful situation and cost them more.
Well, we can’t say that both statements are wrong. It all depends upon individual to individual. How better they understand trading? How dedicated are they to grow in this business? Are they familiar with using the computers or not? There are heaps of relevant question which can easily point out their interest towards the trade. First, we need to understand what automated trading is? An automated trading means convenient, effective, efficient, error-free method of trading with a support of online programmed software.
It helps to evaluate the current position of the market and make the decision accordingly. More productive and requires less input from the user ends. The main reason behind developing automated trading software by most companies is to provide long-term growth and gain instant short term income.
What other precautions need to take?
It is mandatory to get familiar with the functionality of the software prior utilizing it. For this, you need to contact to the developers because they can only guide you through in an appropriate manner. You need to analyze your requirement first. If it seems to you that you can bare with it then the next thing you should do is start asking these questions to get a better understanding of the software:
- Is it possible trade multiple markets simultaneously?
- Is it possible to trade multiple time frames?
- Is there is any restriction of trading in market conditions?
- Is it is easy to adapt the different trade times?
- Is it possible to determine own risk tolerance?
- What is the purpose of developing the software?
By asking these question to the developers, it will give you the crystal clear estimate. Whether the software is suitable or not for your usage. Read on further to know some advantages and disadvantages of automating software:
Eviction of Emotions:
In Forex trading, the majority of traders makes the wrong decision because of their emotions. They are unable to justify the difference between the reality v/s emotions. Trading never gets done while floating on the boat of emotions. One needs to be firm and active while making decisions. Thus, the automated software evicts emotion and only focus on productivity.
Gives You Spare Time:
It has been found that people who are in trading business. They spend their whole time in front of the screens to plan strategies to get protected from the lost. But on the other hand, software handle all the formalities firmly and gives you the extra time to learn more about trading or to spend some time with your colleagues.
Rapid Decision Making:
As we are familiar with the term, “every penny counts”. This term sits perfectly in the world of trading. The software has the ability of decision making in the time of micro-seconds. Trading is full of fluctuations, after every second, trends keep on changing and make it harder for the sole traders.
In any field of trade, as per the experts, maintaining discipline is the key to the success. Mostly, traders have an emotional fear of entering the wrong figures manually. But automated software ensures, no incorrect figures gets entered in the system to avoid any obstacle in following trading plans.
No Decision Making Choice:
Yes, it is true that automated system is well programmed and makes a quick decision. But there is an another side of it as well which can’t be ignored. It does not allow it, user, to make discretionary choices while trading. They have to go by with the decision of software only.
You may consider yourself an expert in other fields. But in the trading, if you have decided to use automated software then you have to learn codes to acquire perfection. Even if, you approach it’s developers to get it modify. Still, the challenge remains the same. Doesn’t matter you modify it 100 times, learning codes is a process you have to deal with.
To run the smooth functionality of the software, you need a good running speed of the Internet. The draw back of using automated software is that the chances are on a higher side that malfunction may occur due to bad Internet connectivity.
Though, the software has numerous advantages. But this fact can’t be ignored that it becomes very hard to control its functionality. This is simply because of preset codes. It becomes very hard to enter the current market trends most of the time. The system also doesn’t understand the fundamental rights of the financial world.
Whether you choose to trade solely or decided to go with the automated software. You need to analyze your requirements first. Which way do you find yourself more comfortable? Make your decision accordingly. This will help you a lot to trade accurately and promptly.