Automatic or manual trading?
For a relatively long time, automatic forex trading has been in demand among speculators.
Why it happens? Firstly, the automated method of working in forex completely replaces the trader himself, eliminates errors due to the “human factor”, and all transactions are concluded by trading robots – that is, forex advisors.
Despite the obvious advantages, manual trading remains the most popular type of forex trading. Every day the army of traders , which trades by hand, is replenished with fresh blood – “green” fighters who want to try their hand at the market.
So, let’s consider what the disadvantages and what advantages are inherent in “manual” forex trading and automatic.
Advantages of “manual” forex trading
First of all, it is flexibility in closing a deal. If you have experience in the forex market, you are able to independently analyze the market and find trading signals that the market sends you. Usually a forex trader can independently identify the most suitable moment to enter and exit the market, calculate the best stop-loss and take-profit levels, and, of course, the lot and the opening price.
Fast orientation in unplanned situations . The price movement in the foreign exchange market is often influenced by various factors, they do not depend on the forex trader himself and it is extremely problematic to predict them. This includes political news, and harsh statements from important persons, and macroeconomic data, and microeconomic statistics, and jumps in the financial sector, and much more.
In such cases , strong, sometimes incomprehensible to traders, price jumps begin at forex . And only a living person can identify such situations in time and stop trading in time, or vice versa, catch a new and profitable trend for himself.
Forex advisors do not accept such changes, and open deals according to their own algorithm, often to the detriment of your depot.
Flexibility if the trading system fails . It is no secret that any system does not work with 100% reliability. Moreover, the Forex market always behaves differently, and trading systems should be adjusted at certain intervals. A speculator can change the principles of his forex system himself, if necessary, even every day. Sometimes this method helps to avoid mistakes and serious losses. But automatic forex trading does not have such flexibility.
Forex advisors trade according to the set settings permanently. Moreover, trading experts are not immune from technical overlaps, which always go sideways for a forex trader.
Affordable and cost effective. This way of working is available to everyone who wants to work on Forex. The speculator’s expenses depend on the time of his work and on the size of his wallet.
Automatic Forex trading requires constant availability of money on the deposit to be effective. In addition, you need your terminal to work constantly, that is, the computer must constantly work with a network connection.
That is, as you can see, there are also drawbacks to “manual” work on Forex.
Disadvantages of “manual” forex trading
This is a notorious human factor, a trader who looks after quotes on the screen and waits for signals from the market, is an extremely emotional creature. And even if you have a specific Forex strategy and a system of strict discipline, it does not always help, because it does not eliminate emotions, fears and doubts of you as a biological organism. Moreover, not all traders manage to strictly follow the principles of the strategy and control their emotions.
Hence, it is clear that the influence of the human factor brings certain adjustments to the results of work on Forex. It is enough to imagine the speculator’s doubts when strategy signals diverge, say, with the current trend. Or imagine your state when, when the position is open, the price goes into negative territory or a stop-loss signal appears.
Automatic work on the market is the opposite, because the robot is devoid of emotions and fear, and trades according to clear rules prescribed in its algorithm.
Limited trading operations . Identifying intelligible trading signals requires constant monitoring of price movements in forex. It will take a very long time and can drain your physical and emotional resources. Therefore, the number of trades, including profitable ones, very much depends on the time that a trader can spend in monitoring the situation, and on his perseverance and ability to wait “in ambush”.
When working in automatic mode, advisors trade around the clock. They do not get tired, they work even at night, because the market sometimes gives good signals for deals at night.
The habit of distraction . Any circumstances, external stimuli, even pets and family matters can distract a speculator from forex trading, which is not good. It is especially unpleasant when the market price goes to key levels or a fresh trend is formed, and you are forced to be distracted by some “urgent” business.
So a speculator can miss planned deals, lose the projected profit and, as a result, become discouraged. And forex advisors are ready to work in any situations and do not miss the deals they need.
So, we have found out what is good about working on Forex “manually”, and what disadvantages it has.
If you do not wish to entrust your money to automated systems and enjoy Forex trading , “manual” trading is for you. If not, and you get only negative emotions and stress from Forex trading, then the best option for you is trading advisors that will make money for you offline.
Choosing the option of trading with a trading expert , our website ” Forex Advisors ” will definitely be useful to you .