For many years, people have been trading on the foreign exchange market, and in the beginning, the manual method was the only way used to fulfill this. But since technology has developed since that time and there are a lot of people now who use automatic trading on Forex. Each of these methods has its specific features which can be both pros and cons depending on the trader's preferences.
...using automatic trading on Forex is faster and easier...
Manual Forex Trading
When using manual Forex trading, you will need to be very attentive and accurate because the calculation is made by yourself without the help of the robot. The advantage of it is that you keep control on every order that you open and close. Therefore, you know the situation on the market and what currency pairs to choose for your trading strategy. This helps you to make a plan for future actions. The trading plan for manual trading will help you to stay calm regardless of the conditions on the market and to avoid losses.
Automatic Forex Trading
Meanwhile, using automated trading on Forex is faster and easier. You can trade with the help of robots or expert advisors even if you are away and don't have an opportunity to watch the graphics. With automatic trading, you can make a profit while being engaged in your personal affairs.
From the other side, you don't have full control over the trading account when you use autotrading. This fact won't cause any problems in case the trader works with small trading volumes, but if he uses a more significant amount of money and the risk is higher, it will be hard to relax and just let the robot to do all the work for the trader.
Manual trading will help you to be always aware of the situation on the market. But because everything depends only on the trader, it may be not convenient and even hard to control the trading process if there are a lot of opened orders.
The very first thing that you should realize is that the manual trading plan on the foreign exchange market requires all your time and attention. While trading manually you make all orders by yourself, this is, especially when you want to keep records of every order. Manual trading will help you to be always aware of the situation on the market. But because everything depends only on the trader, it may be not convenient and even hard to control the trading process if there are a lot of opened orders.
Automatic trading offers a much easier method to manage orders. Robots and advisors do all the work for you. With their help, you can open and close a lot of orders at the same time. In addition to this, the instruments determine the momentum to enter and to exit the market. They also do all the calculations for you.
But automatic trading also has some disadvantages. First of all, you need to learn more about the robots you want to use, about how they affect your trading. It is not an easy job to choose a robot which will be suitable for your trading strategy because the results of your trading will depend on it.
It is impossible to say what is better: manual or automatic trading all depends only on the trader and his strategy. But there is some advice which can help you. You need to decide:
- how many orders you are planning to open within a day;
- how much time you can spend on trading;
- what trading volumes do you want to work with.
If you know this information, it will help you to make the right choice. Regardless of the kind of trading you choose if you get entirely into trading, you will receive useful feedback from it, such as high profit.