Manual Forex Trading VS Automated Trading – What`s the right choice for you?
Human brain is a complex thing and it’s still the most experimental thing in the world. On the other hand, we have computers that are the great invention of human and we all believe that humans are superior to machines. So what’s the point of me talking all this? Forex trading is an online business where we trade currencies and try to make profit upon them by buying and selling. If you are in Forex trading field then you must be aware of Forex robots (EA) automated forex trading system. Beginners who are desperate to taste the trading usually have the perception that they can make big money overnight using these forex robots.
Let me tell you one thing that if you are also one of them who is thinking that they don’t have to do anything on their part, just need to get any automated forex trading system for metatrader 4 so there will be raining money over them then you need to open your eyes before it’s too late and you do not have any more money to lose. I would suggest you leave trading at this exact moment!
Let’s discuss traits of manual trading and automated trading in details!
Automated Trading – Pros & Cons
Automated trading, Forex Robots (EA) is the hot topic for many traders where companies advertise that you need to buy their programmed system and it will earn money for them while they don’t have to do anything. I agree that computers are more disciplined than humans but we cannot deny the fact that there are chances of errors in automated trading as well.
When it comes to comparing automated with manual trading system, first argument is usually that Forex robots are much powerful, accurate, high percentage of calculation, they can store and remember more data and information than human mind with which there are slightly higher chances to have a successful and profit trade. They can help in predicting the future price of the currencies. There are several automated trading system for metatrader 4 but it’s highly recommended that you beware of these fake advertised systems because forex is no get rich scheme. It’s true that with EA you don’t have to sit for long hours in front of your PCs to analyze the market but you must know that automated systems also requires regular monitoring because there are different possibilities such as mechanical failures, internet problem, power loss or computer crashes.
Forex trading is a profitable business and it’s true that you can earn well but you should remember that to achieve all that you have to spend time learning forex techniques, study forex market and know how it actually works. Yes! It all does take time and a whole lot of patience but in return you will be more successful. Usually beginners do not want to go through all this hardships so they choose to go for automated instead of manual trading systems. But at the same time it’s also true that 90% of new traders face serious losses and leave trading market due to lack of knowledge and information of trading. Have you ever thought why does it happen actually?
A simple and straightforward answer of this question will be Human weakness and greed is the real culprit for this. Automated trading systems have been designed and advertised such that they should appeal the greedy or naïve investor but why we forget that there is no get rich scheme which will make you billionaire overnight. If these robots are so powerful than developer will not be sharing it with you and of course not on such low prices.
Manual Trading – Pros & Cons
Manual forex trading gives you the real feel and thrill of Forex trading system. In manual trading you have full control over your trades and it’s always better to learn things and experiment with them. In automated trading you don’t have any idea what’s going on behind the scene but in manual trading system it’s up to you that when you want to trade or avoid the market.
All negative aspects of automated trading system are positive aspects of manual trading system.
Trading is an art with the mix of science in it. You must try to learn if you want to be a successful trader. We cannot guarantee 100% success and we all know that risk factor is always there so in manual trading system at least you have the advantage that even if you fail, in return you will get experience. You will try different strategies; will think to manipulate them and in the end you will learn how to do forex trading actually. If you learn that part well then you can turn your losses into profits within no time.
Robots are only programmed machines, they will do exactly what that have been instructed them to do. They will not consider any other thing but as being considering the volatility of the forex market you must kept in mind that there is no fool proof mathematical formula to trade and predict the market. If you are expecting such things from robots then you must reprocess your thoughts.
Fundamental analysis is a really important factor which should not be ignored while trading and only human can sense and feel the change. Human can foresee if there will be a currency fall down due to some economical, political changes, world events news, announcements, interest rate change etc. these are all the factors that must be considered along with the technical analysis if you want make your trade profitable.
The Winner Is …
Manual trading system! Traders must choose manual trading because it will give them knowledge, a life time learning and experience which lacks in automated systems. Automated systems do sound useful and quite attractive but they will not work for long time. They only look good on paper! If you know how to trade then you can do that easily regardless of depending on some specific robotic system. It’s dangerous to rely on some specific system because if you do so then you lost the chance to groom; and what if that system goes down. Developers can discontinue that automatic system or maybe they just forget to update then what? You can see yourself that where you will be standing then.
Manual trading system gives you upper hand here because with this you have the freedom to trade upon your choice. You can trade in any dynamic situation and try different strategies according to your need. It will be your choice as when you think is the right time to trade regardless of an emotionless robot because there is no one better out there who will care for your money’s profit or loss than yourself.
Choosing between Manual Forex Trading VS Automated Trading is basically choosing between two different approaches . The bottom line is – it`s up to you to make the right choice.