Forex Trading: Automated vs Manual
by Jason HollumWhat has the fuss been all about with forex trading?
The topic of automated trading vs manual trading has long been debated in the field of forex trading. Certainly, there are pros and cons of both methods. I hope to give you a clear understanding on what differentiates them.
You see, what differentiates a successful trader from an unsuccessful one lies not in the system, nor the amount of capital one starts off with, but mental factors and discipline. A successful forex trader trades by his system religiously, even when the going gets tough. He knows that there is nothing to change in his system, for in the long run he will surely be profitable because he has tested and fine-tuned his system.
On the other hand, when a trader suffers a loss, there is a very high tendency to lose confidence in his system. This is especially so when the trader lacks the patience and confidence needed to "perfect" his system, and he starts trading based on emotions and not with his mind. This is called emotional trading. Emotional trading is what every trader MUST AVOID at all cost. It must not be part of forex trading.
The consequences are disastrous. All it takes is one moment of folly of not cutting losses early, letting them pile up, and the next thing you realise your account is wiped out. I am sure many forex traders have experienced this before.
What a forex automated trading system does is precisely to remove this factor of emotion, and to take away the hassle of having to monitor your trades constantly. But some people just don't trust their money being in the hands of an automated trading system. This is understandable.
The fact is, many of these automated systems are back-tested and tested live to be highly profitable. Many large global investment companies use these automated systems to great success, even in times of economic turmoil. The trick here, is to be able to filter out these quality trading systems among the many scams out there.
Once you are able to get your hands on one of these forex trading gems, such as www.fapforex.com, your financial freedom is set.