Differences Between Manual and Automated Trading


Today there are numerous online trading sites where you can invest in stocks, bonds, and even virtual currencies. This makes trading an accessible option for many retail investors around the world, as you only need a stable internet connection and your mobile device to start trading.

On the other hand, automated trading has become a viable alternative to manual trading. It has grown in popularity as it is also readily available for individual investors, even for ones that are complete beginners in this field. If you're wondering what the differences are between manual and automated trading here, we cover everything you need to know about both styles of trading.

Manual Trading

Most online trading platforms support manual trading. This is a trading process where a human facilitates the trading and is involved in the decision-making process. This means that the investor needs to keep up with the latest news in the market, gauge the market trends, and make decisions on their own. However, it doesn't exclude the option of setting automated trading indicators in order to receive prompt notifications about different opportunities.

But, generally, the investor needs to conduct fundamental and technical analysis on their own and research the company before buying stocks, for example.

Furthermore, their decisions are based on their level of experience and knowledge, which can hinder the possibility in some cases when they want to earn a higher return of investments, but they lack certain trading skills or are not knowledgeable enough about trading.

However, if they are confident about their trading skills, then manual trading is a good option for these investors. Also, the trading strategy is chosen and...

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