Forex: Auto Trading Or Manual Trading?
One question that beginners make online all the time is if they should use auto trading or manual trading. The best answer is that you should use both trading methods to achive maximum profits. There are market conditions that suit auto trading the best and other market conditions (such as the release of news events) that suits manual trading the best.
Auto trading is used best when:
1. Scalping or high frequency trading. It is simply impossible for a human to be in the front of the computer all day long analyzing the market and buying and selling in seconds. The robot can take care of this matter automatically. If you are adept of scalping then a robot is much more efficient than a human traders. For high speed trading using a broker with zero spread the robot will have a better performance because no human can buy and sell more than once per second even using one click buy and sell.
2. Night trading. Everyone needs to sleep but the robot does not need to sleep and it can trade while you are resting and dreaming. If you have a robot that interferes with your normal day trading, put the robot into good use at night.
3. Invisible market conditions do not appear to your eyes but the robot can see them. You may be using a couple indicators but it is not practical to look at more than 5 indicators at a time where as the robot can look at dozens of indicators at the same time with the same efficiency.
Manual trading is the right choice when:
1. Unless you are a big bank or hedge fund which spend millions of dollars with artificial intelligence to have the robots analyzing the market news in real time and taking appropriate trades, only human traders can read the news and take appropriate action. Fundamental trading is very important for day trading and short term trading as the market immediately reacts to the published news during the day.
2. Social trading is also quite important because it shows the trends among the top traders for a brokerage service. So far only humans can read flash data and information published by such brokers so if you are using social trading you have to do it manually as there is no robot capable of doing such thing.
Forex trading can result in consistent profits when done right but it takes months of practice to achieve the desired results. You are trading against the best traders in the world, especially the top ten big banks which trade trillions of dollars every day to try to make even more money than they are doing right now. There is no such thing as best auto trading or best manual trading. Both systems have their advantages and disadvantages. The secret is learning how to make the best of both. Forex is the most exciting financial market and it is so big that no player has enough money or power to turn the market to his favor.