What are the pros and cons of manual ( click trading) vs automated trading?

[AP2705]

What are the pros and cons of manual ( click trading) vs automated trading?
I am a decent programmer with python and c++ knowledge, but wondered if it would be better to just study the markets and politics instead and click trade?

 

[Deam.Hender]

I am aware that EA trading requires a higher balance, whereas manual does not have any such restrictions, but for a beginner, which one would be much suitable to avoid higher loss and risks?

 

[Sherverty]

Manual trade is better than robot trading because the robot is just a program. it don't understand the market's present situation and does not get any news bulletin advantage. If you manually trade than you able to get all kind of advantage and you can implement your own strategy. so I prefer manual trade.

 

[Sheldon.D]

From my personal experience, manual trading does not require a higher balance and the profit or loss depends on the traders' strategy and skills.

EA trading requires a higher balance, and consistent profit is not guaranteed because it is based on the calculation of the robot.

 

[NadalEs]

I prefer manual trading because in manual trading, beginners can learn about the forex market in-depth and create various skills or strategies for consistent profit and the only drawback is you need to keep track of your trades always.

And EA trading requires a higher balance, which is a drawback for many beginner traders, and the positive note in EA trading is that it does not need to be tracked.

 

[macrov48]

For someone who tried both, I would say manual is still the best, though I am not good at manual trading but I know that manual trading will keep you in the long run

 

[mlawson71]

To me the biggest pro of manual trading is that I am in control. My successes are my own and my losses are my own. I don't surrender my training to a thoughless robot.

 

[andengireng]

Basically these two analytical techniques differ only on the object being analyzed. Technical analysis refers to graphical analysis that can be done through doodle charts, see indicator signal, or use price action. While fundamental analysis refers to the economic data of a country. The table below will give the difference between technical analysis and fundamental analysis. The important thing is what broker you choose to trade with. I suggest you to trade with FreshForex because FreshForex is good for your strategy (Technical and Fundamental) you will get the best price.

 

[AayushiShah]

Pros of manual trading

• Manual trading is unquestionably the most effective technique to learn about forex trading and put your skills to the test. Because as an investor, you must become acquainted with and understand specific tools, techniques, and most importantly the ability to make critical judgments based on fundamental and technical analysis.
• A trader with this trading strategy is more likely to have greater control over the execution of a trade. This also aids in identifying potential and avoidable errors that could lead to future losses.

Cons of manual trading

• Despite its benefits, traditional trading can be time-consuming because it requires the trader to undertake thorough research, evaluate previous deals, and identify the best time to enter a trade.
• Another significant disadvantage of this strategy is dealing with the sentiment component, which frequently influences trading decisions and diverts attention away from certain trading indicators.

Pros of automated trading

• Most traders favor automated trading because it removes the emotional component from transaction executions. Traders can focus entirely on the numbers if they are immune to certain emotions when completing a trade.
• This technique of trading also allows investors to diversify their portfolios by covering a wide range of market circumstances.
• Beginners can profit from the ease with which they can test different methods using demo accounts.

Cons of automated trading

• Although historical data is useful in determining the software's capabilities, it does not guarantee the future because the forex market is notorious for being highly unpredictable with new patterns emerging regularly.
• Trading in this manner is more expensive than trading in the traditional manner.

Conclusion
It is obvious that each of these strategies is good in its manner, therefore, weighing the pros and cons is necessary before deciding which option is best for you.

 

[areteus]

Pros of manual trading

• Manual trading is unquestionably the most effective technique to learn about forex trading and put your skills to the test. Because as an investor, you must become acquainted with and understand specific tools, techniques, and most importantly the ability to make critical judgments based on fundamental and technical analysis.
• A trader with this trading strategy is more likely to have greater control over the execution of a trade. This also aids in identifying potential and avoidable errors that could lead to future losses.

Cons of manual trading

• Despite its benefits, traditional trading can be time-consuming because it requires the trader to undertake thorough research, evaluate previous deals, and identify the best time to enter a trade.
• Another significant disadvantage of this strategy is dealing with the sentiment component, which frequently influences trading decisions and diverts attention away from certain trading indicators.

Pros of automated trading

• Most traders favor automated trading because it removes the emotional component from transaction executions. Traders can focus entirely on the numbers if they are immune to certain emotions when completing a trade.
• This technique of trading also allows investors to diversify their portfolios by covering a wide range of market circumstances.
• Beginners can profit from the ease with which they can test different methods using demo accounts.

Cons of automated trading

• Although historical data is useful in determining the software's capabilities, it does not guarantee the future because the forex market is notorious for being highly unpredictable with new patterns emerging regularly.
• Trading in this manner is more expensive than trading in the traditional manner.

Conclusion
It is obvious that each of these strategies is good in its manner, therefore, weighing the pros and cons is necessary before deciding which option is best for you.

I totally agree with you. You had outlines pro and cons for both trading systems. I think the best one is combine of these two systems- semiautomatic.

 

[Supercilious]

Major pros of automated trading is that the trader does not have to sit in front of the system to trade, algorithms do it for the trader. A manual trader does not have this freedom of time and would have to sit in front of the system while trading. As a pro for manual trading this provides more control to the trader in which strategy can be changed according to the market situation.

 

[Svengali]

Automated trading is better than manual trading as the trader involvement is reduced to very less, leaving the trader with more free time and less stress. Manual trading on the other hand has a benefit that traders are updated with the latest developments in the forex market allowing them to make better decisions than automated trading.

 

[Allegator]

If we talk of automated traders, they have to spend time building a robot in accordance with their particular requirements and let it trade on their behalf. Such a robot can help them take advantage of the small market movements that are not possible for a manual trader. But talking about manual traders, they believe that their intelligence and capability to understand the market is far better than robots. And find it more profitable to analyse the market before making a market move.

 

[ShihTzu]

Manual click trading is perfect for beginners but it is time consuming and demands active participation of the trader. Automated trading helps an expert trader to trade without getting involved actively but then there are sometimes in trading when active participation is more beneficial.

 

[Schmooze]

I don’t think it matters whether you are doing automated trading or manual trading. What matters is whether or not; you understand what you are doing. You can start as a manual trader and when you have gained some market experience, you can test using an automated system. Where manual trading makes you the master of your own trades, automated trading gives you the advantage of not missing to take advantage of the smallest market fluctuations.

 

[VargaDimwit]

Automated trading has its limitations. It might help in not missing out on any trading opportunities but can also deplete the whole account if the trader is not careful and alert. One needs to keep a check on the platform. On the other hand manual trading is based on the intellect of a trader which is more reliable and profitable.

 

[Kalology]

With automated trading you can trade without emotions, unlike in manual trading, where trading psychology is the key player. Traders can use bots to execute complex strategies easily and use them for 24 hours. However, manual traders, on the other hand, have the ability to process the market and handle its volatility, unlike bots, which are limited in their scope.

 

[monssur]

Automated trading is definitely riskier, you can control so many more things by manually trading

 

[Serimeter]

In my opinion, the biggest advantage that has made me choose automated trading over manual trading is deletion of all sorts of emotional influence while making trading decisions which had been bothering me for a while now. Other than this, I feel both manual and automated trading are quite similar and should be chosen as per convenience and goals.

 

[sarahgoutvaks]

Automated trading allows a trader to trade even without being online on the trading platform. It works efficiently within the range that is set by the trader.
So, the trader needs to change the range according to the change in the market. Secondly, any kind of technical error can lead to unexpected losses.