What is Auto Trading?
In the Auto Trading system, we set a strategy in our program’s software. According to this strategy, our program automatically enters or exits from the market. It is also known as Algorithmic Trading since computers are used to execute a trade.
Why is Auto Trading Useful?
1. Emotionless Trading: Here is no emotion in the Auto Trading system so enter or exit from the market is totally controlled by our program’s software, according to the strategy set in the software.
2. Discipline: In the Auto Trading system discipline keeps remains all the time. Many times in Manual Trading we forget to trade on our strategy but in Auto Trading our software always remains in the discipline.
3. Mistakeless Trading; Here is no chance to create any mistake, in the Auto Trading system. In Manual Trading, we can create a mistake.
4. Time-Saving; In Auto Trading, you do not need to remain on your computer screen all the time. Once you set your strategy in the software and then you can do any other work. It is a big advantage in Auto Trading.
Drawbacks of Auto Trading
In Auto Trading we get less experience of trading in the Stock Market to compare to Manual Trading. A person learns from mistakes. But in Auto Trading entering or exit is controlled by the strategy in software. So we are unable to learn something new about the market.
What is Manual Trading?
In Manual Trading, here is human decision involves to enter or exit the trade. This is the opposite of Auto Trading which employs programs that originate trades based on human instructional criteria.
Manual traders are often still assisted by programs and technology in making their trading decisions.
Why is Manual Trading useful?
1. Choice: In Manual Trading, we enter or exit the trade by our choice.
2. Experience: We gain much experience in the trade in Manual Trading. We create mistakes and learn from them. We do not create the same mistake again.
Drawbacks of Manual Trading
Manual Trading and Auto Trading both have pros and cons. But some time in Manual Trading we get lots of cons due to our emotions.
In Manual Trading, we need to remain on the screen all the time. So here needs so much time to trade in Manual Trade.
In Manual Trading, we can create many mistakes. For example, many times we want to buy shares but we click sell-by mistake.
