Forex Trading Forex Trading Mindset

5 Questions To Determine if Manual or Automated Trading Is More Suited To You

Is Manual or Automated Trading Better?

First of all, I wish to say that the topic of whether manual forex or automated forex trading is better than the other is going to be a topic of never-ending debate. However, if we take the differences aside, and look from the perspective of our own capabilities and shortcomings as a trader, it isn’t that tough to decide whether manual or automated trading is more suitable for you in trading forex.

A Few Short Questions To Help You Figure Out Whether You Are More Suited to Manual or Automated Forex Trading

Do you prefer to spend a short time or a long time trading per day?

How much time do you have for forex trading? Also, if you prefer to spend more time per day in front of the charts, manual trading is more suited to you. Automated trading will bore you to death.

Recommended broker for manual trading. Offers high leverage even for folks in UK, Canada, Europe.

Do you tend to “meddle” with your trades or do you simply “set and forget”?

If you like to meddle with your trades, you probably want more decision and control in how your trades are managed and exit. Manual trading is more suited to you. But if you prefer to set and forget, automated trading will be better. Automated trading is meant for people who are mentally able to entrust and commit their forex account to a system that works in a pre-set way that they are agreeable with.

If you use a MT4 platform, an automated trading system is known as an “Expert Advisor” which is a script to automate your trading based on a set of pre-defined, adjustable rules. You can read more about this on my EA page.

What is your Forex trading capital? A little, or a lot?

If you have a smaller trading capital, you most likely have to do fixed-lot manual forex trading, using higher risk exposure and constant monitoring, so that you can maximize your gains and yet swiftly exit the market when economic events bear their impact. A larger capital is required as a “buffer” or safety net against the inevitable floating losses that automated systems will incur on its way to making profit. The profit reward in automated forex trading is generally more moderate than manual trading because risk exposures have to be toned down in order to cater for unexpected surprises without placing the account at risk of margin call or broker stop out.

Do you change your forex strategy or strategies often, or do you mainly stick to one or a few?

If you constantly change to new forex strategies or constantly make drastic changes to the settings of indicators or ways you take trades, then you should stick with manual trading. If you hardly vary your overall trading approach and stick to a similar set of rules, you probably can program a system to automate your forex trading. Alternatively, you can seek out an automated trading system that closely matches your trading style.If you have a trading idea that you would like to automate, I can either help you define and arrange the creation of your strategy, or, if it greatly interests me, I may even develop it for you for shared usage rights. You can contact me on my personal facebook regarding this!

Most Importantly: Are you constantly profitable as a Forex trader?

If you enjoy trading manually and are constantly profitable, you should keep doing it. However, if you’re making some, losing some and eventually just breaking even, you clearly have some issues in selecting the appropriate strategy, managing your risk, your emotions – or all three, and therefore automated trading could be a more consistently profitable approach for you.

Visit my Forex Managed Accounts page to find out how my trading system can make you money and free your life. 

How To Improve In Manual Trading?

The best way to improve in manual forex trading is making a dedication to learn and be consistent. Joining a group with regular lessons which also offers case studies can be a big help to you in getting good at doing self-directed forex trading. The Forex Learning Group has a lesson archive, weekly webinars, daily case studies and a students chat-group to help traders learn and internalise new techniques through practice, discussion, critique and comparison. Read more about the Forex Learning Group HERE. How To AutoTrade More Profitably?You should actually read a recent blog post that I wrote that is highly relevant to this, as in that post I share my “Top Recommendations on How to Properly Test A Forex Expert Advisor (EA) Automated Trading System”. You can read the blog post HERE.In addition, you might also be interested in this deal I have going on, where you can receive my personally-designed, bespoke Forex Hedging and Trend Riding EA, which is a core strategy of my FireYourBossV2 PAMM system, worth US$699, for FREE for forex accounts of $1000 and above, opened through me via either of the following links! I am also still doing some finishing touches to my hedging EA which is also used in my PAMM system, and you’ll also get to receive that when that’s ready, but only if you join now. I may have a separate fee for that in future as it’s very profitable.

Join FXPrimus with US$1000 or More To Receive My EA Worth US$699 for FREE

Join Fullerton Markets with US$1000 or More To Receive My EA Worth US$699 for FREE

Join FXTM with US$1000 or More To Receive My EA Worth US$699 for FREE

For FXPrimus or Fullerton Markets, I recommend “Variable Spread” if you plan to use my scalping EA later on, or plan to trade on USDJPY – as the ECN commissions at these brokers will make them not worthwhile on the original setfiles I have for you. For FXTM, Variable Spread is known as “ECN Zero”. Select that instead.

About the author

Julian Wong

Dad of 3 Kids. Son of floor-traders/broker parents. Born with ADHD and Aspergers which makes me "emotionally retarded" (according to my wife), but that also gives me special abilities in pattern recognition. Been involved in financial derivatives since 16. Enjoys playing tennis. Sings like Josh Groban. Aspiring to DJ in large music festivals.

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