An increasing number of people choose to start trading cryptocurrencies every day, however, they only later realize how much time, effort, and energy it requires. This is why most of them choose to utilize computer programs for carrying out a wide range of automated trading functions, most commonly known as Forex bots.
However, if you never used such robots before, you might be wondering – what are the pros and cons that I can come across when using these automated programs? Fortunately for all traders that are looking for an answer to this question, you’ll be able to find it in the article below. Let’s take a closer look at the list of benefits and drawbacks:
Five Pros of Trading Robots
1. They Could Run At All Times
People cannot function at all times, especially since they have other obligations such as spending time with their families, enjoying their hobbies, as well as taking care of their natural needs like eating and resting. Even the most successful and motivated tradesmen have to take occasional breaks for consuming food, sleeping, and spending some time away from the monitor.
On the other hand, a trading robot is able to function all the time, without needing any breaks, hence, when you decide to take a break or when you cannot be online, they’ll be monitoring and working instead of you, meaning that you won’t miss any opportunity that comes up on the market.
2. No Emotions = Better Choices
When people trade, it could be difficult to control their emotions, which means that they can make bad decisions. And those bad decisions can easily result in some huge financial losses. The bots you can choose will function on a set of commands and no matter what happens and occurs on the market, they’ll follow those commands.
Even if you have set some rules for yourself that you try and follow all the time, it could be hard to think objectively. An automated program will help you with removing any risks of your emotions influencing the trading decisions you make, which means that you can rely on these bots to make the right trades.
3. They’re Fast And Efficient
There are various Forex bots such as the ones featured on forexezy.com, that can scan and monitor the market in order to find different trading opportunities. Besides finding these opportunities, they’re able to carry them out properly and according to the rules you have previously set for them.
This makes the bots extremely efficient and fast in the process, which is something that would take a trader much more time, effort, and energy. Additionally, since you cannot quickly examine the market, you might lose some trading opportunities which won’t happen if you opt for utilizing a trading robot.
4. They’re Able to Multitask
Although you might think that you’re good at multitasking, in most cases, it could lead to some serious mistakes. But, utilizing a completely automated program will enable you to monitor a wide range of things such as exits and entries and profit objectives, all of which will operate at the same moment. Also, these bots can trade several currency sets at the same time, meaning that you won’t miss out on an opportunity.
5. Even Beginners Could Utilize Them
There are hundreds of these programs that you could find on the market, and almost all of them are simple to utilize, which means that you won’t need specific expertise and skills for using them. Of course, before you choose a specific one, you must do some extensive research, nonetheless, utilizing it will surely enable you to have more time to learn the entire concept of trading and how to do it properly.
Four Cons of Trading Robots
1. Your Connection Needs to Be Constant
You won’t be able to utilize a trading robot if you don’t have a good PC with a strong, reliable, and consistent connection to the net. And problems with the connection or servers can cause some serious glitches which can influence the bot to trade inaccurately. And, like any other program that you could purchase and utilize, they could be affected by malware, but they can also be subjected to external threats including cyberattacks.
2. Imagination Isn’t Their Strong Suit
Yes, as a prosperous trader, you’ll have to properly use your knowledge and experience, however, you also need to use other things such as your imagination and logical thinking in order to try and predict how the market will evolve. These automated programs will only function based on how you originally programmed them to, which means that they aren’t capable of being creative when it comes to the trades they make.
3. They’re Mostly Designed For Trending Markets
By now, it’s pretty clear that these bots are designed for trending markets only, which means that they’ll monitor and notice any signals and act on them. This is quite beneficial when the exchange is trending – when the charges are moving in 1 direction – however, when the exchange becomes non-trending, the bot might not function properly, meaning that they won’t know what to do when the prices are moving horizontally.
4. They Might Be a Scam
Last on this list, but not least important to know is that these programs can be scams, which is why it’s extremely important for you to do your research and choose a company that can provide you with a bot that is reliable and trustworthy. Even the ones that are extremely popular might have some issues, hence, you must ensure that you make the right choice. Keep in mind, most companies offer free demos, so, before you go ahead and purchase a bot, try it first.
Although there are a few disadvantages that you might come across when using these automated programs, choosing to utilize a Forex robot for your trades will prove to be quite beneficial. Not only will these bots help you with staying online 24/7, but, they’ll also make better decisions, especially since they’re not influenced by emotions.
So, now that you’re aware of all the advantages these bots can provide you with, you might not want to lose any more of your time. Instead, you should open up a new tab and start searching for a Forex robot that will help you with making your entire strategy more efficient and quick.