New traders have to decide whether or not to use an automated trading system.
Unfortunately, many new traders let their prejudices get in the way of making money with good systems. This article will address the concern many traders have regarding automated trading systems.
After they first hear about auto traders (or: robots) many new traders are skeptic. The promise of making money without doing anything yourself seems too good to be true. They read about winning guarantees, and about 80 percent winning percentages. “If that would be true”, they ask themselves, “why doesn’t everyone do it?” They conclude that auto traders must be scams, and that they should stay away from them.
This begs the question: Are auto traders scams, or can you trust them to make money for you? Unfortunately, there is no simple answer to this question. Undoubtedly, the rapid growth of the binary options market has promoted the “make money quick” side of marketing, even in trustworthy auto trader providers.
Many clever marketers have taken advantage of this new space by heavily promoting auto-trader robots and signals that claim to guarantee success but actually lose traders money.
Due to the fast growth of the binary options market, even some brokers are now providing robots for binary options trading. Think about these offers for a second: A broker, which makes money when you lose money, is offering you an automated trading software.
Do you think investing in that product is a smart idea? What is the only possible outcome? Of course, all of these programs are going to lose you money. That is what they are supposed to do.
To make money, you have to invest in auto traders that make their creators money when you make money. The best way to do that is any offer with a monthly subscription fee. The design of this kind of service guarantees that your auto trader provider makes money as long as you are satisfied and make money. While subscriptions are usually more expensive than one time offers, in the long run, they are usually worth the additional cost.
Most binary options trading products are sold using a payment provider called ClickBank.com. As a requirement, all products come with a 60-day money back guarantee. This means, if you’re not satisfied with the product you bought, you can get a full refund.
If you have not made any money using an auto trader for 60 days, you can be sure that you are not going to make any money going forward. Quit their service right there, and you will not have lost any money. This strategy limits your risk to almost zero.
Recently, new auto traders emerged, that can connect Meta Trader, the gold standard for automated trading, to binary options: Meta Trader to Binary. With these auto traders that simply execute the decisions of your meta trader, you have full control of your automated trading strategy, and you do not have to trust any vaguely defined bought algorithms. No offer such as this can be a scam.
In conclusion, it is important to understand that not all auto traders are scam. In the end, an auto trader is nothing but a signal provider that executes its signals automatically. If the signals are good, and it is definitely possible to create good signals, the auto trader will work just fine.
The dangers of auto traders spring more from how traders handle them than from the auto trader itself. When you subscribe to a signal provider, you have to execute every single signal yourself. If your signal provider creates bad signals, you will immediately realize that and know that you should switch providers.
With auto-traders, however, many traders tend to forget about them. Since they are not involved in the trading process, they do not supervise their auto traders and do not check their results. After some time, they might find out that they chose a bad auto trader in the first place. To avoid this trap, simply check your trading account every day, or at least every few days, and make sure your account balance is heading in the right direction. If it is – great. If it is not – switch auto traders.