Pros and cons of EA trading

With minimal investment and learning, you can automatically trade with a purchased EA and start profiting from the Forex market. EAs work best without intervention on your part. This is based on the assumption that EA system providers provide regular strategy updates.

Advantages of trading with an EA

1. Provide a business plan
2. Monitor and execute trades on your behalf
3. Minimize the tendency to negotiate with emotions
4. High probability of entering at a good price
5. Provide lightning-fast market analysis with little to no error
6.Provide money management for you (lot size calculation and Stop Loss)
7. Good learning tool for trading (for beginner traders, this may be the best option to earn steady money and learn about the market)
8. Trade a system researched by professional traders
9. Take advantage of the expertise of professional traders as they provide updates to your EA system at little or no cost.

However, even if traders use EAs, most of them will lose money.

EA trading weaknesses

1. EA allows users to be lazy and tend to become complacent, that is, take unnecessary risks with the idea that they will win all the time.
2. Believe that consistent profits in trading is about having good systems.
3. You cannot handle loss emotionally or have a low tolerance for the risk of loss.
4. Don’t do proper research before buying EA
5. I don’t understand how the EA operates
6. Human intervention in EA trading is the last thing you want to do when trading EA
7. Personal characteristics do not match those of an EA (a trend follower by nature will not like the EA of resellers even if a profitable EA is used due to conflict)

It is very important that we understand EA’s limitations and the leverage of EA’s strength in our trading business. Beginning traders are encouraged to learn how to trade from the books and start trading with well-researched EAs. We have learned a lot from using these commercial EAs. The next step will be to design your own system and operate your own system. Feel free to use this article on your website or ezine as long as the following author / website information is included.