One of the great things about automated trading is that it relieves the stress of trading. Those who have more of experience will tell you that after years of staring down the market the stress takes its toll. One has to be able to cope with the reality that he is likely to be wrong more than he is right, a very common aspect of trading. It’s not uncommon to see traders burn out after five years. Even when you are wrong more often than you’re right it is still easy to make money as long as you do not let the wrong trades get any worse than they need to be. However the stress of watching the market like a hawk day after day begins to take its toll.
Automated trading takes the pressure off. It also makes the losing trades less important, especially when a system has been meticulously back-tested. When the program loses money you can say, well, that was the one out of five trades that it gets wrong and yet have confidence that the program will make up for that bad trade with four good ones. It may also make up for those four small losing trades with one big winning one, depending on how the software is programmed.
The Forex market operates twenty four hours a day. There is no telling when the best setups in the market will be. They could take place when you’re asleep at 2A.M. in the morning. Automated trading however allows you to take advantage of those opportunities by setting those parameters. And if you’re concerned about the system going haywire and losing a ton of money at night when you’re asleep and have no way to shut it down, you can program a stop loss into the system so that it will shut down in the event that a certain amount of money is lost.
Another great benefit is that you can essentially start from anywhere. The software itself is not incredibly expensive and you can probably start a brokerage account with as little as 500 dollars. Plus you get a good amount of leverage which means instead of using a mere 500 dollars of buying power you will probably have access to fifty times the buying power, so 25,000 dollars, in which case it’s not hard to see why people’s money doubles so fast.