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DailyForex is a one-stop-shop for all Forex traders whether they are new to the market or have years of experience. We offer in-depth objective reviews of Forex brokers, money managers, signal providers, Forex courses, and general market products. We also cover the market news and analysis and... More
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  • Forex Auto Traders: A Scam or A Gold Mine 0 comments
    Jun 14, 2009 5:50 AM

    By: DailyForex
    The rapid speed at which the Forex market is growing has many consequences, some better than others. On the one hand, there are endless resources online for learning and becoming an expert on the largest most lucrative market in the world. There are also many more people around the world who are spending their days and nights testing out the waters of Forex trading.

    Other positive outcomes of Forex growth are more Forex brokers and services from which a trader can choose. However, as always, the growing popularity of Forex brings with it some problems that require caution on the part of the Forex trader. One of the biggest issues in today’s online Forex community, as well as the general Web community, is spam. When it comes to surfing the web and encountering annoying popups or receiving bogus emails, as annoying as these occurrences are, 99% of the time, they are annoying and nothing more. Of course, there is the occasional online scam, but with the widespread use of online communication such as email, messenger, and social media, most people know to stay away from those types of things.

    When it comes to Forex spam, however, it is a totally different ball game. There is money to be lost as a result of the different types of Forex spam that traders encounter on a daily basis. The most common type of Forex spam is advertisements for Forex robots or auto trading systems. The big question regarding these auto traders is “Are they all bad? Are there some legitimate ones and are they worth trying”? The answer is that they are NOT all spam and that there is a LOT of money to be made by using auto traders, but for that, you need to do your homework.

    First, let’s try to understand why one would use an auto trader and what are its advantages? As, we have written before, one of the biggest downfalls of the Forex trader is emotion. While being in touch with your emotion will get you far in life, it will set you back in your Forex trading. It is important to set yourself a trading strategy and stick to it, NO MATTER WHAT. This is harder than it sounds. Just imagine you define your trading technique, and for days, all you see are losses. Are you telling me your emotion would not kick in?

    Alternatively, if you are seeing constant profits, would you not be swayed
    by greed to trade more money? This does not make you a bad trader, this makes you human. For this reason exactly, it is a smart tactic to remove the human factor from your trading. The way to do this is to automate your transactions.

    There are many auto traders out there that perform technical analysis and decide when to open or close trades, while its primary “concern” is to keep you on the winning side. Unlike Forex brokers, who occasionally profit from your loss, auto traders work for you and not against you. Another reason to use auto traders is that they can trader 24 hours a day, even when you are not near your computer.

    Imagine, you can be at a friend’s party and find out that you just made a huge profit, it’s like the feeling you get when finding money in your pocket multiplied by 100. Let the auto trader do all the work while you sit back and enjoy the fruit.

    Finally, auto traders can be a great and effective trading tool for any Forex trader, no matter how experienced they are. However, it offers a huge advantage to new traders. They do not need to know the market, how to read the charts, or what a certain currency will do in the market today. Essentially, you do not need to know anything about the Forex market, and you can become a very successful Forex trader.

    Now that we have established that Forex auto traders can be a wonderful thing for traders, how do you choose one? There is no one way to decide which auto trader to use. An important and crucial tip in ensuring your auto trader is legitimate and will bring you profits and not losses, is course to read reviews. You can read professional reviews as well as user reviews, but make sure these are objective opinions and not written by the people who are behind the system that is being reviewed.

    Another way to take precautions before buying a Forex auto trader is to look for a few signs when examining the company at hand. Here are a few questions you should ask yourself when choosing a Forex auto trader:

    1: Do they offer a money back guarantee? Most reputable auto traders are so confident that their product works, they will offer a money back guarantee ranging anywhere from 30-60 days after the purchase. This means if you buy the software and realize soon after, it is not for you, you can receive a complete refund. This is a must when choosing a Forex auto trader. If you have this guarantee, it lowers the risk of a scam to virtually zero.

    2: Do they offer a free demo? Similar to choosing a Forex broker, one of the first things you need to do when choosing an auto trader is test it out. When buying a car, would you not test drive it first? Make sure to do the same in your Forex trading. Test out the software before purchasing it. However, it is also important to take into account that demo accounts are not always 100% accurate, so take the results of the demo with a grain of salt.

    3: Does their website annoy you? Lastly, this is a universal rule when it comes to buying anything online. Go to the vendor’s site and look out for any popups/illegal activity/inappropriate advertisements. This is not full proof but it is a precaution worth taking. 9 out of 10 times, a site that displays annoying and shady popups will offer a questionable service as well. If this vendor associates itself with shady businesses such as the online pornography industry, you should think twice before investing your money in such a company. As I said, this not across the board, there are some very legitimate online businesses that feel that a popup covering your entire monitor is effective marketing. They are wrong, but that does not make them a scam.

    The bottom line is that online scammers do not choose to scam in areas that are not full of potential. Nobody is going to click on a spam advertisement for a computer from 1981, scammers know what they are doing and they choose topics that will draw attention. Forex auto trading has endless potential when it comes to making you steady and significant profits, but just like anything else online, you must proceed with precaution.

    Themes: Forex, Auto Traders, Scam
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