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We discussed the foreign exchange market yesterday, well as mentioned that these days, an investor can opt to either hire a real, live human adviser on what currencies to trade, or, can also choose to use an autotrading system.
Both systems have its own advantages and disadvantages. Let’s see what is there for each one.
Some people opt to trade forex with the manual trading system, with the traditional, real live human adviser. Mostly, the premium the manual trading adviser is the years of experience the trader has, as well as intuition about the market. However good a software or algorithm is, some people are most comfortable talking to someone with experience. With manual trading, a trader can open or close his market position whenever the trader decides. Opening a trade is relatively simple: Deposit, choose the currency pair to trade, study the market, prescribe the leverage level, specify the stop loss and profit taking points, then you are ready to trade. These steps can be done anytime. And if there are any special updates that may seem to be benficial to a currency, a trade can be opened then. For traders who desire to follow the currency market considerably, the manual trading is an exciting way of forex.
Automated systems, on the other hand, are also based on experience, but experience you can’t brain pick. The trading system, based on what works and increase profit, is already programmed into a software or mobile app. Autotraders can then just key in their preferences when to buy and sell, and are then able to attend to other matters. This eliminates the traditional practice of watching the market every second. If in case the currency market takes a turn for the worse, an autotrading system can sell as soon as the prescribed market downturn happens. Thus, even when the trader is not physically monitoring the currencies, the trading moves on. This kind of trading is less stressful to one’s health, and being able to do other things while potentially earning money is anyone’s dream. Beginners may find it a good way to master how the market works.
Individual traders may find though that both ways may be used in tandem, depending on what’s happening in the market and the countries. There may be days when a manual system may best be used to ensure gain is maximized, but on other days, an autotrading system may work just fine.