Forex Trading Systems: Pros and Cons of Manual Trading Systems

Using Forex trading systems could provide you with a number of advantages as a Forex trader. With all of the attention on automated Forex software, many people do not even learn how to manually trade anymore. Although trading software can be attractive, learning how to use a manual Forex trading system can be beneficial as well. Here are some of the pros and cons that come with manual trading systems.

Control

One of the advantages of using a manual trading system is that you have more control over your trades. When you use a software trading program, it takes all of your trades for you. You have very little input over what happens with your account. When you manually trade, you decide when to trade and when to avoid the market.

Adaptable

Another benefit of using manual trading is that you can get smarter as you go and adapt to market conditions. Many Forex robots do not learn from their mistakes and keep making the same decisions again and again. While a robot may be able to be programmed to be profitable over a certain period of time, it may not adapt to changes in the market.

The Forex market is very dynamic and it is constantly changing. You need to be able to change your strategy as you go and manual trading provides you with that opportunity.

Self-Reliance

When you learn how to trade the Forex market manually, you can do so regardless of what happens outside of your control. If you rely on a Forex robot to trade for you, you could lose the ability to use that robot at any time. The developer could discontinue it or fail to update it when the market changes.

If you know how to trade manually, you can keep trading and keep making money. It doesn't matter what decisions are made as you can rely on your own knowledge of the market to be successful.

Time Requirements

Even though trading manually does have some major benefits, it does take a lot of time. When you trade manually, you have to be able to be around your computer a lot. You may have to spend several hours per day in front of a computer monitor to analyze what is going on in the market.

If you have a day job or if you have other responsibilities, this type of trading may not work for you. Besides that, you have to be very disciplined because it can get old in a hurry.

Sticking to System

Most people who trade manually have a particular trading system that they use on a regular basis. The trading system helps them analyze the market and decide when to get involved. One of the problems that most people have is that they cannot stick to the rules of a system all the time.

Traders get impatient and they might feel like getting in the market even though their trading system says otherwise. It is during these times that many trades are lost. If you want to trade manually on a regular basis, you have to be very disciplined.