Discretionary Trading and Automatic Trading: Which will Prevail over the other?

Discretionary and automatic trading: which will prevail?This dilemma has been the subject of many debates among financial market investors for several years
Discretionary and automatic trading: which will prevail?This dilemma has been the subject of many debates among financial market investors for several years

This dilemma has been the subject of many debates among financial market investors for several years. That’s why we will objectively examine the different points of view and thus be able to draw reasonable conclusions.

Automated trading

In recent years and more and more now, there is a plethora of automated trading software for sale on the market. The automaton confers many advantages, particularly that of not being demoralized in the face of losses. In short, if it is well developed, it can become a very relevant tool for people who do not have free time( employees, students, etc.).

The best way to ensure that an auto trading tool follows a strategy that you think is valid is to program it yourself. There are quite a few tutorials on the net, and programming is not necessarily straightforward. Developing an automated system also requires programming notions, solid knowledge of the financial markets, technical analysis, and risk management.

In addition to the creative work, the longest part is undoubtedly testing the automaton through backtests and their analyses, then through long live monitoring on different assets simultaneously.

Choosing a good tool is the first step toward successful automated trading. Choose one with a decent accuracy rate, good client support, and a user-friendly interface. When opting for your auto trading software, perform diligent research. Take your time, read software reviews and trading forums. We suggest taking a look at BitcoinCodePro, and see the available features of this recently launched auto trading tool. .

Discretionary trading

Much more discussed in practice, discretionary trading consists of trading in a “manual” way. In terms of knowledge, it is unnecessary to have a lot of it to get started. You just need to know how to handle a platform and a few notions about the financial markets. However, it takes a lot more to win and, above all, experience. Trading is not only about knowledge; it is from practice that success is born.

Despite the clich├ęs, discretionary trading is not easy to grasp. In short, you have to know how to predict, properly analyze the market conditions, invest intelligently, and control yourself to hope to achieve long-term capital gains.

In conclusion, we will confront the two points of view. In summary, automated trading goes particularly well with people who don’t have much free time during the day or don’t want to be stuck in front of the computer all day.

On the other hand, discretionary trading can also pay off. But in the same way, it is long to master and requires much work on oneself that many traders do not do.

Although some predict that the machine will sooner or later defeat man, given the results of many commercial programs, this does not seem to be the case at present.

Nevertheless, some seriously constructed software produces outstanding performance. It is therefore difficult to decide, generally, trading enthusiasts try to master both. The prospects offered by each are impressive.

However, given the volatility of the markets, such as crypto or Forex, it may be a better idea to go for automated trading, especially if you are rooky in this field.

Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.

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