What is manual trading?

What is manual trading?

What is manual forex trading, how to start manual forex trading, how manually to trade forex and how does forex manually trading work. Manual trading is where a trader will make a decision on when to buy or sell an asset and then place the trade themselves via market or pending orders. The manual trader may also scan multiple markets first to actually find an opportunity before deciding to act. In essence, most of the work is done by the trader which means their output is only as good as their input.

For example, an intraday Forex trader may spend the morning scanning through a list of different currency pairs to find combinations of technical trading events using indicators and other types of analysis. They may then either place a buy or sell order themselves or build a watchlist and set alerts to notify them when an asset’s price has reached a price level they would consider buying or selling at.

The trader may then make the decision to buy or sell by placing the order themselves. Some traders may also opt to manage trades themselves by moving stop loss and take profit levels as the market moves with them. In manual trading, it is the trader which has to make all the decisions and act.

Manual trader pros

  • Through manual trading, the trader has to learn about the market they are trading, the tools they are using and methods of makingtrading decisions such as technical analysis and fundamental analysis. This is a great way to build knowledge about trading which can then be useful when trying to devise an automated trading system.
  • In manual trading, traders have a bit more control on what to do when. From a mindset perspective, this is powerful. Especially if a trader is trading on live money. Knowing that you have a trade on, inputting the details and seeing the stop loss on the chart yourself can help to feel more settled in managing an account.
  • With manual trading, a trader can actually identify what is working for them and what is not working for them. Typically, most traders struggle with the mindset aspect of trading and even more specifically, taking losing trades which is an inevitable part of the business. But by understanding what is not working, they can work on it to become better.

Manual trader cons

  • Manual trading does take time. The trader needs to perform research, be there to place their orders and spend time reviewing their trades and individual behaviour to try and reach superior performance. Some of these tasks can be semi-automated though. For example, a trader could use pending orders to instruct their broker to close trades at profit or loss at certain predetermined price levels.
  • A disciplined mindset is required to trade successfully. Many traders often let their emotions get to them and start to ‘gamble.’ It is up to the trader to maintain discipline inrisk management at all times, making sure they don’t risk too much to allow for losing trades, making sure they actually trade consistently to allow a statistical edge to work in their favour and making sure they focus on their processes rather than all the noise of other people’s opinions.
  • Many manual traders struggle with being solely accountable for their trading account and will often blame their strategy, or their platform, or their broker, rather than look internally at their own behaviour and decision-making abilities.

Fortunately, manual traders can access automated trading services to help identify potential trading opportunities! With Your broker you can upgrade and supercharge your MetaTrader trading platform with the Supreme Edition plugin.