Nearly everyone who works on the Forex market faces a question: “What is better: manual or automated trading?” Every type has its pros and cons. If you haven’t decided what strategy would fit you, welcome to our article. Let’s go!
Manual trading
+ Full control over your trades. When trading manually, you are able to handle your orders and turn losses into profits anytime.
+ You can quickly fix the system if it doesn’t work properly. Need to make a correction to your trading system? Do it!
+ You improve your skills and become a better trader with every opened order. Practice gives you experience which is the most important thing in trading.
+ More mindful analysis and prediction of the market. You can analyze everything properly and look at the market from different sides.
+ Using both technical and fundamental analysis. While robots use only technical one, you can get the benefits of both types of analysis.
- Deep knowledge and improved skills are required here. You have to spend months and even years to become a professional. Moreover, the work doesn’t stop even after you have already created your own system. It has to be improved constantly.
- Manual trading takes more time. Of course, working with an EA means that you can concentrate less on the market, while manual work needs your complete dedication to it.
- It includes the emotional element. Psychology can be both your best friend and the worst enemy. If you don’t learn to control emotions, even the best trading system won’t be effective.
- The wrong approach to the trading process can lead to great losses. Don’t treat this serious business as gambling. Don’t try to cheat the market.
Automated trading
+ It is free of emotions. Robots allow you to calm down and rely on a program that trades without any emotional involvement into the trading process.
+ You get more free time. If you are sure that an EA works well, you can let it do everything by itself.
+ Constant sticking to the plan. Robots are programmed algorithms that won’t change their strategy and tactics in any case.
+ There are no data overloads. Manual trading requires a multitasking activity. It includes analyzing news, indicators, quotes, managing several orders, etc. An EA gives you an opportunity to relax from the hard mental working.
+ A quick reaction to the signals of the market. As every algorithm, an EA reacts to signals as quickly as they appear.
- It is based only on technical analysis and market volatility. There is no fundamentals here, but it’s complete understandable why is it so.
- Absence of flexibility. One strategy for one EA, no different variations and opportunities to change orders basing on trader’s intuition without interfering the robot’s work.
- This type of trading requires constant monitoring at the start. If you just starting your way with EAs, you can’t leave them alone before you test them properly. You can’t trust robots with unchecked performance as they can either make profits, or blow your account.
- EAs depend on the proper work of your computer and the Internet connection. What program will work on an old slow machine with a discontinuous connection to the servers? Probably, none.
- Robots sold in the web can be both effective and inefficient. It depends on the current market situation and the trading conditions.
So, now you’ve got the difference and can make the right decision regarding what type of trading fits you the best. Anyway, you can use both of them and switch from one to another anytime you want.
We wish you profitable trading and hope you will be successful on the market!
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