Manual Forex and CFD trading is a popular method among traders, and for a good reason. While automated trading systems have become increasingly popular in recent years, there are still several advantages to trading manually. This article will discuss the top 5 reasons manual trading is better than automated trading.
Top Reasons Why Manual Trading is Far Superior to Automated
Flexibility:One of the most significant advantages of manual trading is the flexibility it offers. You can make decisions based on your own analysis and intuition with manual trading. This means that you can quickly adapt to changing market conditions and adjust your trading strategy as needed. In contrast, automated trading systems are often inflexible and can struggle to adapt to changing market conditions.
Control: With manual trading, you have complete control over your trades. You can decide when to enter and exit businesses and the trade size. With automated trading systems, the software makes the decisions for you, and you have little control over the trades.
Transparency: Manual trading lets you see exactly what is happening in the market. You can see the price movements, volume, and other indicators in real time, giving you a clear picture of the market. With automated trading systems, you often rely on the software’s interpretation of the market, which can be opaque and difficult to understand.
Understanding: By trading manually, you will gain a deeper understanding of the markets and how they work. This understanding can help you to make better trading decisions and improve your overall performance. On the other hand, automated trading systems can make it challenging to understand the market and lead to poor trading decisions.
MEGATREND: Manual trading allows you to identify and capitalize on market MEGATREND. With automated trading systems, the software can only identify trends based on past data and might not be able to identify new emerging trends in the market. By trading manually, you can spot MEGATREND early and take advantage of them for maximum profits.
Human Emotions: Human emotions can play a significant role in trading, both positively and negatively. On the one hand, emotions such as confidence and optimism can lead to effective decision-making and successful trades. On the other hand, emotions such as fear and greed can lead to impulsive and irrational decisions, resulting in financial losses.
Traders need to recognize and manage their feelings to make sound investment decisions. Some traders use mindfulness and cognitive-behavioural therapy techniques to help them stay grounded and avoid emotional biases. Risk management strategies can also help traders stay on track and avoid making hasty decisions based on emotions.
Manual trading offers several advantages over automated trading systems. From flexibility and control to transparency and understanding, manual trading is a powerful tool that can help you succeed in the Forex and CFD markets. By trading manually, you can identify MEGATREND and capitalize on them for maximum profits.
In conclusion, manual trading is a powerful tool for traders looking to succeed in the Forex and CFD markets. By trading manually, traders have the flexibility to adapt to changing market conditions, the control to make their own decisions, and the transparency to see exactly what is happening in the market. Additionally, manual trading allows traders to gain a deeper understanding of the markets and how they work, leading to better trading decisions and improved performance.
However, it is essential to note that manual trading does require a certain level of knowledge and skill. It is not recommended for beginners or traders with limited experience. It is also important to remember that no trading method is foolproof and that risks are always involved. Traders must be aware of the risks and develop a well-rounded trading strategy that includes risk management. Traders should also consider combining manual trading with automated trading systems to take advantage of the strengths of both methods.
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Cheers and safe trading,