We all already have a subjective opinion on the matter. The proponents of automatic trading will tell us that through a program, there is no psychological bias to consider.
Proponents of manual trading will support their point of view by asserting that trading software cannot quickly adapt to different market conditions.
The two opinions do not contradict each other. They are complementary. Consequently, there is no point in siding with one side or the other because both support their theory with largely valid arguments.
When manually executing trading orders, the trader will necessarily be confronted with emotional factors, for example, loss aversion or risk aversion, which are the two main problems of the beginner trader.
It is said everywhere that it is necessary to “quickly cut your losses and let your gains run.” It is a crucial rule but remains rather rarely rigorously applied by traders.
Many will tell you that they trade with a large ratio, i.e., their gains are always far more significant than their losses.
Nevertheless, the ratio remains constant, i.e., that one certainly cuts losses as necessary, but one does not let the gains fly away. “Letting your gains run” means that you don’t place a fixed exit from the top but progressive exits from the bottom. That is the principle of the trailing stop.
Also, manual trading will require much time dedicated to tech and fundamental analysis. So if you are too busy for that, maybe you should consider switching to automated trading. Let’s see its main characteristics.
Automated trading is a complex mechanism, unlike manual trading. It is based on algorithms that are responsible for studying the market price and adapting according to its evolutions.
This way of trading is based on elements already recorded upstream and which are used to configure the opening and closing of positions according to what you have configured.
However, the algorithm implemented must be monitored to ensure its consistent performance. It requires a particular vigilance because the software is not infallible.
Also, be vigilant when choosing your auto trading platform. For instance, BitcoinCodePro is one of the recent top-notch crypto auto trading platforms. If it draws your attention, make sure to take a look at its reviews and search the opinion of the active users.
What are the benefits of automatic trading?
One of the great benefits of automatic trading is that it is devoid of emotions. So no more crazy shots after a meteoric rise in action or a movement made under the influence of panic. The algorithm performs the steps that have been indicated.
Another benefit results in the saving of time. Manual trading can mobilize a lot of energy to purchase and resale shares. In addition, the constant monitoring of market developments and the emotional commitment can considerably hold a trader’s attention. Thanks to automated trading, the investor plays a simple supervisory role and can thus devote the time saved to other projects.
You now know more about the operation and benefits of automated and manual trading. It’s up to you to choose one or combine them for the best trading performance.