Automated Forex Trading vs Manual Forex Trading
Forex can be traded in a number of different ways, and in this article we discuss the basic differences between automated trading using forex robots, alias forex expert advisors, and manual trading.
What are the Differences Between Manual and Automated Forex Trading
The Foreign Currency Exchange (FOREX) market is the largest and most liquid financial market in the world. But, in this huge market, at least 90% of new FOREX traders lose all their money within their first 3 months of trading. Why? People who enter the world of forex is commonly of a fairly high intellect, however, they usually lack the right tools to make profits in the long run. The right tools does not neccesarily mean for instance analytical tools, but rather tools that take away the "human-factor", for we as humans have a number of inherent weaknesses that make us seem almost self-destructive.
FX Automated Trading ReviewsLet's discuss a few human weaknesses...1. Greed. Many times we have a 1% profit, but we feel it is not enough. We want more, 2% or 3% will be better. When the profit really goes to 3%, we will think how about 10%? It's never enough. But the forex market is so volatile, and profits can and often do turn into losses.2. Fear. Fear of losses is often the cause for people to make irrational choices and end up losing all their money. 3. Lack of confidence. A lack of confidence can mean taking a small profit on a trend that goes a very long way, and making larger losses all the time. A lack of confidence is the opposite of greed in this case, but a good trading strategy should dictate where entry and exit points are even before the trade is made.4. Hesitation. Hesitating and not sticking to your plan can be detrimental to your trading performance. Not only does it mean that you might get confused when thinking too much, it also means you loose that vital window of opportunity that would maximize your profits. 5. Weariness. Taking a break is something we all need every now and then. However, taking a break in the fast-paced world of forex can often be the difference between making a profit and a loss. 6. Negligence. We often neglect to pay attention to the smaller things in life, and more so do traders often neglect to pay attention to the minute details of every trade. This can lead to constant losses as every bit of detail often proves to be vital.7. Lack of discipline. Forex trading is often compared to fighting in a war, as you need absolute confidence in both or you will almost definitely perish.
Forex Robot ReviewsTo overcome these terrible weaknesses of humans, people have developed many methods. One of them is called "Automated Trading". Automated (or Automatic) Forex Trading means to trade Forex (Foreign Currencies) using some trading systems, programs, software or robots (on Metatrader MT4 platform it is called as Expert Advisors - EA), without needing a human to physically trade.An automated trading system is a group of specific rules and parameters, governing entry and exit points, having the ability to both generate signals and execute trades automatically. There are many advantages in Automated Forex Trading: 1. Automated trading is executed by computer. Computer technology advancements mean that computers can now process millions of times as many calculation per timeframe as humans can, giving them a clear advantage in the fast-paced world of forex.2. Taking the emotion out of trading. Computers do not trade based on emotions. Period. They only trade based on a certain set of criteria that was programmed into their algorithms.3. Automated trading can take trades day and night, non-stop, no weariness and negligence. EA robots free their owners of the necessity of sticking in front of the computer at all times. Once an effective system is developed and optimized, it can be left to run full automatically and independently. A successful automated trading EA robot will allow its owner to focus on optimizing strategies and money management rules rather than having to constantly watch the market. 4. Computers can run multiple programs simultaneously, so we can use automatic trading EA robots to take multiple trades synchronously. We cannot monitor multiple currency pairs over multiple timeframes all at the same time, yet computers can, and what's more is that you can even run multiple different ea's on the same computer at the same time.5. For day traders or other short term trading fans, automated trading robots are very helpful tools to deal with the high frequency of trades using tick data. Day trading keeps traders exposed in the market very shortly, so sometimes it is safer than long term trading, but it is really difficult for a human to handle. However, for automated trading EA robots , it is just a piece of cake. 6. No whether you are doing long or short term trading, the forex market is always volatile and moves fast, only automated trading can afford faster identification of signals and reaction to them. No doubt, computers will typically beat human beings in the speed of identifying a trading signal and the entry and execution of the corresponding orders. No more missing a trading opportunity.
FX Automated Trading Reviews
The Foreign Currency Exchange (FOREX) market is the largest and most liquid financial market in the world. But, in this huge market, at least 90% of new FOREX traders lose all their money within their first 3 months of trading. Why? People who enter the world of forex is commonly of a fairly high intellect, however, they usually lack the right tools to make profits in the long run. The right tools does not neccesarily mean for instance analytical tools, but rather tools that take away the "human-factor", for we as humans have a number of inherent weaknesses that make us seem almost self-destructive.
FX Automated Trading ReviewsLet's discuss a few human weaknesses...1. Greed. Many times we have a 1% profit, but we feel it is not enough. We want more, 2% or 3% will be better. When the profit really goes to 3%, we will think how about 10%? It's never enough. But the forex market is so volatile, and profits can and often do turn into losses.2. Fear. Fear of losses is often the cause for people to make irrational choices and end up losing all their money. 3. Lack of confidence. A lack of confidence can mean taking a small profit on a trend that goes a very long way, and making larger losses all the time. A lack of confidence is the opposite of greed in this case, but a good trading strategy should dictate where entry and exit points are even before the trade is made.4. Hesitation. Hesitating and not sticking to your plan can be detrimental to your trading performance. Not only does it mean that you might get confused when thinking too much, it also means you loose that vital window of opportunity that would maximize your profits. 5. Weariness. Taking a break is something we all need every now and then. However, taking a break in the fast-paced world of forex can often be the difference between making a profit and a loss. 6. Negligence. We often neglect to pay attention to the smaller things in life, and more so do traders often neglect to pay attention to the minute details of every trade. This can lead to constant losses as every bit of detail often proves to be vital.7. Lack of discipline. Forex trading is often compared to fighting in a war, as you need absolute confidence in both or you will almost definitely perish.
Forex Robot ReviewsTo overcome these terrible weaknesses of humans, people have developed many methods. One of them is called "Automated Trading". Automated (or Automatic) Forex Trading means to trade Forex (Foreign Currencies) using some trading systems, programs, software or robots (on Metatrader MT4 platform it is called as Expert Advisors - EA), without needing a human to physically trade.An automated trading system is a group of specific rules and parameters, governing entry and exit points, having the ability to both generate signals and execute trades automatically. There are many advantages in Automated Forex Trading: 1. Automated trading is executed by computer. Computer technology advancements mean that computers can now process millions of times as many calculation per timeframe as humans can, giving them a clear advantage in the fast-paced world of forex.2. Taking the emotion out of trading. Computers do not trade based on emotions. Period. They only trade based on a certain set of criteria that was programmed into their algorithms.3. Automated trading can take trades day and night, non-stop, no weariness and negligence. EA robots free their owners of the necessity of sticking in front of the computer at all times. Once an effective system is developed and optimized, it can be left to run full automatically and independently. A successful automated trading EA robot will allow its owner to focus on optimizing strategies and money management rules rather than having to constantly watch the market. 4. Computers can run multiple programs simultaneously, so we can use automatic trading EA robots to take multiple trades synchronously. We cannot monitor multiple currency pairs over multiple timeframes all at the same time, yet computers can, and what's more is that you can even run multiple different ea's on the same computer at the same time.5. For day traders or other short term trading fans, automated trading robots are very helpful tools to deal with the high frequency of trades using tick data. Day trading keeps traders exposed in the market very shortly, so sometimes it is safer than long term trading, but it is really difficult for a human to handle. However, for automated trading EA robots , it is just a piece of cake. 6. No whether you are doing long or short term trading, the forex market is always volatile and moves fast, only automated trading can afford faster identification of signals and reaction to them. No doubt, computers will typically beat human beings in the speed of identifying a trading signal and the entry and execution of the corresponding orders. No more missing a trading opportunity.
FX Automated Trading Reviews
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