Pros And Cons Of Buying Automated Forex Signals

Jul 08, 2011 • By • 21 Views

A controversial subject like allowing others to trade your hard earned money inspires strong feelings in many people, on both sides, for and against. Such subjects often inspire heated and fervent advocacy that it's hard to get past the emotion towards the facts, nevertheless, using logical analysis is preferred. A responsible analysis would demand a dispassionate study of each side and also the reasons in support of positions. Let's look at the advantages and disadvantages:

Ready? Then let's start. First the Pro, in favor of:

The leading point in favor of buying automated forex signals is the freedom allotted to you to go about your life without staring at a computer screen all day or being tethered to your office. You choose the schedule you want to check your active strategies and research other trading strategies.

Another supporting point is you can get started investing immediately. You can literally be up and running in a matter of hours or days instead of weeks or months.

The third positive point is you don't have to learn trading strategies or technical analysis. Some of the technical analysis when trading Forex is very complex and requires many hours of research and study.

A fourth big benefit is the ability to diversify trading strategies easily. You can tweak your settings to increase or decrease risk.

And last (although not necessarily least) we have the 5th point in support which is the ability to cancel a losing strategy and replace it with a winning one. If the strategy is bad in the long run, cut your losses early and move to a new strategy!

On the other hand, to help keep this balanced, there's Con;

The very first point in contra for buying automated forex signals is going to be the lack of control over trades, especially if they are executed in great number all at once. Depending on how often you check your account you may find a severe drawdown in equity before you can do anything about it.

The second point in contra is you don't really know the traders or trading systems that are controlling your money. Unless you have many months of verifiable trade history you never know what changes in behavior you may see.

Another point against is the lack of accountability if things go wrong. Without contact information you may get stuck holding the bag with no answers or lessons learned..

The fourth point against is you must pay, either a per trade commission or monthly fee, or your signals get cut off. This could happen when you have open trades, meaning they will not be managed! You must close them out, usually at a loss.

So there we have all the arguments for each side.

Finally then, what's the "bottom line" here? Is automated Forex trading good or bad?

The reply is apparently "Yes" to both questions! Buying automated Forex signals is a combination of good and bad... It must be left up to you to determine, which side, the good or the bad, has the preponderance of weight.

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Lola R Lane Lola R Lane

Avoid many of the pitfalls when shopping or buying automated Forex signals and trading strategies by going to the authority in automated...

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