Trading bots are old news right now.

Old news in the sense that they have been existing for quite a while now.

And while trading bots were created to be perfect, they are usually anything but.

Want to find out more, and if you should use them?

Stick around!

Trading bots were created to eliminate human emotion.

Human emotion was becoming a serious barrier to making profits.

Many swing traders have a serious problem maintaining their emotions when the price swings too far up or down.

Stop losses helped, but not so much.

And accounts were bleeding to death left, right and center.

So some smart people somewhere decided to create this thing called a trading bot.

It is a piece of software overlayed on top of your trading platform of choice. 

The software is programmed to make trades only when certain criteria are met, and it will only make a trade when ALL the stars align.

This sounds perfect in theory. It does the work, and you make the money. 100% efficiency.

Not quite.

You see, trading bots have a serious disadvantage: They are rigid.

They won't make a trade if one of their programmed criteria isn't met. And once a TP is set, that's the end of that. The asset could moon all the way up to 500% gains, but because you set your bot to take 0.5% profits, that's all you'll be getting.

This rigidity is the main reason why I don't recommend trading bots.

Especially to new traders. Bots could be fitted with your personal trading strategy and left to run, say, when you're on vacation, so you don't miss those precious pips.

But using a bit full time is not really the best idea.

Another reason why it's not such a good idea is because bots work on trading signals given to them by certain technical analysis software. These software packages are also extremely rigid, and are usually wrong most of the time. So leaving your investment money to purely mechanical signals is not such a great idea.

Bots are also quite expensive. The starting price of good bots is about $500 US, and that price is more than some people's portfolio. These prices can get up to $4000, mind you.

What about free bots, you ask.

Well, picture this.

Someone you met on the subway tells you he's a professional trader, and will be able to quadruple your investment of $5000 in just 3 hours. 

Giving your money to him is the equivalent of using a free bot.

Clear?

Now, in conclusion.

I don't advise against using trading bots. They have their use cases as I outlined in the post body.

But they should only be used for those use cases, and not as a full time solution because you're too lazy to learn.

Thanks for reading!