The debate over which is the best method for foreign exchange trading has been running for many years now. Some will extol the virtues of using a robot trader while others will state their preference for good old-fashioned human trading. Both methods have their advantages and disadvantages which are examined in a little more detail below.
The method of using a Forex Robot to complete your trading is also known as auto trading. Obviously since the advent of the internet, auto trading has become considerably more widespread and is the preferred way of doing business for many traders today. Although the internet has massively increased the use of Forex Robots, the auto trading method was first used back in the seventies by the Chicago Mercantile Exchange.
One of the main advantages of using this method is the fact that an auto trading system can cope with a large number of trades at once, something that it is just not possible for a human to do. By establishing a number of pre-sets, various trades can also be replicated across a variety of markets. Again, all this can be done at the same time. Computer systems also do not suffer from the emotional stresses and strains that can befall a human trader in this most competitive of environments.
Of course, for an auto trading system to work correctly, it requires a human to know exactly how to use it in the first place. If someone is not entirely clear how to use their system in the first place, there is the potential for inappropriate trades to be made and money to be lost.
Proponents of human trading will often point out the fact that for an auto trading system to work in the first place, it requires the input of a human being anyway. Auto trading systems can be notoriously difficult to set up correctly, particularly for inexperienced traders so in these cases it is often better to trade the traditional way.
Despite the many huge improvements in technology over recent years, there is perhaps no substitute for human intuition, that inbuilt instinct that all successful forex traders seem to possess.
The decision whether to use auto trading or continue to trade in the traditional way really comes down to the personal feelings of the individual trader involved. Some like to let a computer system take the strain for them while others prefer to rely on their own instincts. The debate over which system is best is sure to rage on for a while longer yet.
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