This tutorial is created to show the difference between automated Forex trading and manual trading. The traders often hesitate to use the automated Forex trading and choose the discretionary Forex trading instead, but all can be found out when comparing one to another, so that’s why this tutorial is worth reading.
Automated Forex trading is the way of trading built on using special computer programs (automated Forex trading software) that have been created within the certain data schemes and backtested to prove the possibility to trade and give profits to traders. Programs for automated Forex trading are created and developed by experienced traders in order to help the other traders in their work that is sometimes too hard and requires efforts higher than human nature allows spending. Automated Forex trading is the best way of trading for those who appreciate their time highly and can’t spend all day long by the PC working on Forex. The software for such trading can be downloaded, bought or either created by trader himself thankfully to the special programming languages (like MetaQuotesLanguage).
When comparing automated Forex trading to discretionary Forex trading, there are some aspects that should be examined carefully as they are the most used arguments in this comparison.
It’s widely known that two emotions that rule the financial market all over the world are Greed and Fear. Trading Forex involves taking decisions on a daily basis, every day gets a hundred requests to make a decision whether to trade or not, whether to leave operation or not, to close position or not. So no wonder that the trader’s work that’s closely connected to making decisions all the time is either connected to emotional side of life. No decision can be taken without feeling something. But that’s what often leads the trader to the crash of his trading career, as in discretionary Forex trading extrafear or extragreed can lead to bankruptcy. No wonder every trader would like to trade without emotions. As it is impossible to the human nature, it is possible when trading is carried out via automated Forex trading software. Forex expert advisor makes the decision according to the indicators and programmed algorithm, it has the ultra-modern logic that recognizes all the market changes in time, so in conclusion the automated Forex trading is free from the chaos of emotions that the trader feels when he is entering the trade. It protects traders’ money without unneeded thoughts and feelings.
No trader that prefers discretionary Forex trading can trade round-the-clock without eating, sleeping and doing his own things. That’s another minus of the discretionary currency trading – many traders choose intraday style due to the needfulness of the night sleep, but night trades can bring great profits they wouldn’t like to lose. The only exit is automated Forex trading, because the program is not the human and it doesn’t need the sleep at night, so overnight trading without the human intrusion is possible, as it is possible when the trader is up to take a vacation and so on.
Money management is what many traders really don’t care about, and it’s a big danger because money management is created in order to protect the trader from the risk of losses, and it really works. When the trader is serious about his cooperation with Forex, the money management is a must, because the rules that this management is based on are not only simple, but checked on the life experience and proved to be real and helpful. Going into discretionary Forex trading automatically means that trader does all the money management by himself, in the meantime, automated Forex software has the included automatic function of performing all the needed events for careful money management. Some programs have the Stop-Loss function that helps exit the trade that can bring losses in time, and calculate the possibility of losses before entering the trade.
When analyzing the economic indicators and trading conditions, the discretionary currency trading limits trader to a very few indicators possible to watch at the time. While at the same time, when using automated currency trading provides the user a great variety of different indicators and the ultra logical system that takes a trading decision within milliseconds. It’s really precious for those who don’t know whether to trade or not and can’t decide fast. The economic indicators, available in automated currency trading systems, vary by their quantity and quality, so it’s necessary to test systems and compare them in order to find the best one.
While discretionary Forex trading requires deep knowledge about currency trading and everything what is related to it, usage of automated Forex trading systems requires only basic knowledge about Forex. It’s important for those who are newbies in Forex trading business and only learn to trade. Trading goes automatically and the systems are usually user-friendly and can be navigated and learned in an hour or two. So if the trader is new to Forex and just getting used to the rules of trading and so on, it’s highly recommended for him to use automated Forex trading on the way to success.
The other way to success is learning all of the Forex trading tutorials that the trader can find on this site!
