Monday, April 22, 2013

Manual Trading vs Automated Trading

There is a constant debate which type of trading is better: manual trading or automated one (using EA robots)? Well, while surfing on the Internet you will find different opinions about this subject. Some would opt for manual, while other will say automated one and both sides will have good arguments to support their stance.

After being an active participant on the Forex market for several years and having tried both techniques I would say that both are good. Actually, the right question should be: Which style suits you better as a trader? The fact is that EA robot cannot replace human thinking, but also robots are not affected by greed and emotions, two big human weaknesses that affect the traders. The robots can work on the market for a longer period of time and they won't miss a trade due to lack of concentration. Also, the truth is that the experienced human trader will earn more than a robot.

So, which style to choose? Well, it depends about you. If you can overcome greed and emotions, if you can trade in full discipline following the the rules set previously and if you can fully dedicate yourself to the trading, than chose manual one. But if you see trading as a second job, if you are vulnerable to greed and to emotions, automated trading will be the one for you.

For those that chose automated trading there are two options left: you can create your own EA robot using MQL or any other programming language, or you can buy one. But be careful, if you decide to buy a robot because there are very few commercial ones that can trade profitably. Lots of scam is offered on the Internet. So, I advise you to find an independent review before you decide to buy a robot.

2 comments:

  1. "Becoming a successful trader in the forex market is not easy. You need to have a certain amount of discipline, ingenuity and a penchant for identifying trends.If you want to take a look in the mentality and mindset of a successful trader, you need to figure out the things that they generally avoid saying.

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  2. Top 5 free automated trading platform?
    Atomated Trading Algorithms
    Traders and investors can turn exact entry, money management and exit rules into automated trading systems which allow computers to monitor or carry out the trades.

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