Forex Expert Advisors - 3 Myths Traders Believe That See Them Lose

If you see a system calling itself a Forex Expert Advisor it's likely to lose money quickly however traders buy them because they believe 3 myths enclosed. If you fall for these myths, you will lose too - let's take a look at them.

Cheap Forex Expert Advisors and Robots claim better track records than the world's best traders and these super traders get paid millions in salaries, so why have these traders not been replaced by robots? Their employers could save millions in wages but no serious trader would use a cheap Forex Expert Advisor, because it's obvious they don't work.

The myths that traders believe which see them buy these systems are:

1. The track Records Presented will Repeat

They take the track records as real evidence of future gains but of course no Expert Advisor ever has a real track record of gains in the market which has been independently audited.

All you get are simulations going backwards (knowing the closing prices) or figures from the vendor direct which are not independently checked. The claim is financial freedom for the cost of a night out, it looks to good to be true and it is.

2. They Believe they Can Trade with Low Drawdown

I have seen systems claim 300% annual gains or more, with less than 1% drawdown which is laughable and any experienced Forex trader will tell you this is not true.

If you trade on leverage, you will have drawdown - Period.

No trader has ever made 300% annually and had less than 1% drawdown in the history of trading, so don't expect a cheap Expert Advisor to manage this either.

3. They Believe the Algorithm is Sophisticated and Detects Moves in Advance

I have seen all these algorithms and there normally very basic and because they have been bent to make a profit on past data, the only way this can be done is to let money management suffer. When these systems trade forward in the real world, Forex prices never repeats in exactly the same way again and the system collapses in real time trading.

The vendors always claim these systems are low risk but look at they way they work and there high risk; It's obvious they will never last long in the brutal world of real trading.

95% of Forex traders lose money and if traders think these systems will give them success with no effort, then the market will teach them some respect.

You can win at Forex trading but you need to learn skills, just like you do in any other business in life and Forex trading is no different. So get yourself a good education and learn to trade Forex the right way and start making some great Forex profits in 30 minutes a day or less.