Benefits and Pitfalls to be Considered When Buying a Trading Software!

Many people get lured into the markets by overwhelmed promises of easy money via day trading robots or expert advisors (EAs). A trading robot is an automated trading software that runs on your desktop and trades for you.

The past decade has seen a sudden surge in selling such software online, but before you plunge into buying one, here are some benefits and other things that you must consider.

The first and foremost thing to keep in mind is that software rarely can make a boatload of money for you. Thus, any promise of easy money must be considered one of the oldest trading scams in the trading markets. There is only one way you can make money through trading software, and that is learning to automate strategies and keep learning. Unfortunately, to this do effectively could take longer than simply learning how to trade manually. A person needs to learn how to trade first and then learn how to automate the strategies via a programming language.

Benefits of Using Automated Trading Software:

• The software reduces the psychological pressures of trading. Although, traders using it still need to know when to intervene, which demands some specific skills.

  The software reacts quicker than humans when a trade signal appears. The lightning-fast speed and reaction time is beneficial in fast-moving market conditions.

  Automated software monitors more markets than any trader can ever do. This is how it finds opportunities in every market it is programmed to monitor.

  It only takes trades that suit a strategy and has proven profitable.

  Allows the trader to simplify a strategy to a programable level. This gives traders an in-depth idea of their key strategy.

  Once a trading program is created, it may require minimal intervention and maintenance for long periods.

  Automated trading truly tests whether a strategy is viable or not. Automating and back-testing is an excellent way to see if a strategy is viable under certain market conditions or not.

  Once automated, a strategy can easily be tested in different market conditions and can be assessed for weaknesses and strengths of the program.

Pitfalls to be Beware of when Buying an Automated Trading Software:

Beware the Sales Push

While a few Automated trading software may work and produce good results for the users, most tend to fail. There is only a tiny percentage of people who have attempted trading through software and have been successful. The odds of success are minimal even when using trading software.

The secret is to constantly watch the software’s performance and adjust to market conditions and volatility while also intervening when uncommon events occur. In general, once you make a purchase, there is hardly any support or update. Make sure you check through all such post-purchase services before finalizing a deal.

Slight changes in the program can change results dramatically. Ask the dealer to coach or train you on how to do this or provide long-term updates and monitoring while market conditions change. So beware, and do not get sucked into the sales push!

Rarely Is Automated FULLY Automated

If you think flicking a switch will roll the money out for you, you are misinformed. Successful automated trading software requires a lot of work in the creation and maintenance of the programs. If you purchase software, you are expected to have expertise on when to intervene and when not to. This means there is a need for manual assessment of the performance and trading! You need to know how to alter a program if market conditions change and know-how and execute it manually. Automated trading does not mean auto-pilot trading. It demands knowledge to maintain the program and trading skills to jump in when needed!