Due to the recent rise in the fame of automated trading, many traders, especially beginners, are wondering which currency strategy is better between the two. Both have advantages and disadvantages and both can be used to make quite large profits. However, you can experience both the ups and downs of these two currency strategies based on your trading style and several other aspects of trading.
To determine which currency strategy is more ideal for you, you need to know as much as you can about automated and manual trading.
Manual trading is the standard form of trading in which you trade using your own capabilities and without the help of an electronic system. This means that you make your own predictions and assumptions, calculate your own capabilities and make trading decisions manually.
Automated trading, on the other hand, is just the opposite. Automated forex strategy uses robots or electronic tools created by developers specifically for commercial purposes. These high-tech trading systems can do almost anything that human traders can do, thus taking the burden of the work off the shoulders of traders. Automated trading systems can make forecasts, place orders, execute trades, etc. and all her decisions will not be affected by human emotions such as overconfidence or lack of confidence, surprise or anxiety and greed. This means that all decisions and moves are made in a strictly technical way.
Both types of forex strategies can benefit different types of traders. The manual forex strategy is more ideal for experienced traders or traders who can easily and skillfully make their own calculations. The manual trading strategy is also more suitable for long-term traders. The disadvantage is that manual trading is more demanding because it requires more commitment on the part of the trader. In addition, it is more vulnerable to various factors that can influence decision-making and can lead to reckless mistakes.
As far as automated trading is concerned, these electronic trading systems are good for traders who prefer daily trading or short-term trading, as the electronic system can trade quite efficiently. Automated trading also offers the advantage of round-the-clock trading. The forex market never sleeps, and with an automated currency strategy you will not have to either. Automated trading systems also mean that you do not have to spend a lot of time and effort on the systems. You can easily leave the system, be sure that it can support your trade while you are gone. The downside, however, is that the programs limit your flexibility. It adheres to a specific system that must be well programmed, otherwise the whole system will cease to be effective.
No matter which one you choose, the important thing is that your choice matches your own skills, experience and market experience. And if you decide on an automated currency strategy, be sure to test your automated forex system before making a big investment.