Whether you're thinking of going into Singapore forex trading or are already doing it, you've definitely come across the term "forex robot." This is actually an application or software that helps you run your forex trading account. It makes forex trading in Singapore so much easier, so you're thinking it's the best step to take in the business.
To help you know if you should depend on it or not, you should have an idea of its advantages and disadvantages:
Advantages
1. It's available 24 hours a day, 7 days a week.
Forex trading occurs 24 hours a day since various markets are open at different times. The problem with not using any forex robot is you cannot apply your forex trading strategies unless you're physically around. Simply put, without the forex robot, you would not be able to trade at certain times even if you want to.
Fortunately forex robots can run 24/7. Thus, you can be running errands or even sleeping and still go on trading. You can be somewhere else and still earn some money.
2. It has all the tools you need.
You cannot make any wise decisions when it comes to forex trading if you don't have all the tools, such as charts and indicators. Forex robots can provide them to you anytime. With a few clicks of the button, you can already generate the bar and stick charts you need. These tools have been fashioned according to the various principles or theories that govern forex trading such as Elliott Wave principle.
If these aren't enough, you can also save the reports or even print them. There are also forex brokers that allow you to send them to others.
3. You can utilize the demo account.
One of the best reasons for using the forex broker is you can utilize the demo account. A demo account permits you to trade in real-time market even if you don't have any cash. It simply provides you with virtual cash. You can use it for trading, and if it runs out, it can be replenished.
A demo account allows you to test the forex trading strategies you've learned. You can also try your own theories. It also provides you a view of how the real market works, so when you start trading, you will feel more confident and prepared.
It would be best, though, if the demo account can last for around 2 weeks or more. This way, you will have ample time to experience a lot of market movements. You should also remember that demo accounts are completely for free.
4. The learning curve for Singapore forex trading is smaller.
To learn forex trading is never that easy, especially if you have no concrete knowledge about the field. However, since all the tools you need are already available, hopefully you can make the learning curve a lot smaller.
Disadvantages
1. It makes you more reliable to the tools than your own decisions.
As they say, don't let the machine control you. It should be the other way around. One of the biggest problems is you may end up being too dependent with the automated forex trading system that you no longer make your own decisions. Keep in mind they don't work without your commands. If you make the wrong decisions about your account, then you cannot blame nothing else but yourself.
2. It doesn't include fundamental analyses.
It doesn't take into account factors that cannot be measured empirically. These include politics, geography, and traders' personality, among others. Unknown to many these can definitely affect the trends in the market or the movement of the currencies. For example, a political tension in Thailand would make baht much cheaper in the hopes its value in the market doesn't go further down. Singaporean dollars become more salable during Tokyo market hours since majority of the traders are awake at that time.
3. It's an application, thus, subject to technical glitches.
This is another reason why you should not completely depend on it. As an application, it is prone to technical errors. At the most, it has an uptime of 99.9 percent. Nevertheless, the 0.01 percent can never be neglected. A few minutes out of the market may mean hundreds of losses for you, especially if you're already in the process of selling when the system crashes.
In the End
An automated forex broker should be just one of the many tools to use. Most of all, you should rely on your own decision. In fact, there are times when gut feel becomes important. If you're unsure of your decisions, then you better not trade at all. It's better to not earn anything than to lose a lot.
Furthermore, choose your broker wisely. Make sure you can depend on an excellent technical and customer support.
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Oleh
Rohmatullah