Article: Self-directed Vs Automated Forex Trading

written by Ejovi L. Efenure, CEO, www.InvesticsFX.com

Author's Photo Self-directed forex trading is to automated forex trading as manual data processing is to electronic data processing during the wake of the advent of computer applications for business use.
Automated forex trading introduces hands-free forex trading amongst many other  advantages not attainable with self-directed trading. With automated forex trading, a forex trader is able to put his or her forex trading business on auto-pilot and do away with spending long hours at the computer desk. What this means is that the forex trader has more time for leisure or other human endeavours while the business runs itself. He or she is able to sleep well, go on vacation, spend time with kids, and just be plain relaxed while earning auto profit. More importantly, the forex trader is able to avoid the work load of constantly carrying out complex market analysis and decision making that he or she requires to stay successful trading the forex. There is virtually no learning curve in using ready-made automated forex trading systems.

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The question most people will ask next is whether self-directed trading will soon face natural extinction or be phased out. If not, why not? Every good thing, they say, has a downside. So, what is the downside for automated forex trading? Most, if not all, automated trading systems are based solely on technical analysis. This leaves much to be desired as price movement is driven by fundamental factors. A well educated and experienced self-directed forex trader can make more efficient trading decisions as opposed to an automated forex trading system that is based solely on technical analysis. This is  because, he or she can react more quickly to news effects even before they show up on the charts. As a result, you find that most automated trading systems have low equity growth curves compared to what is attainable with professional self-directed forex trading.

It seems like a good idea for businesses to invest more on self-directed trading than automated trading systems. A company can hire a few experienced professional forex traders to man their trading room on a shift basis say 3 shifts of 8 hours each to cover the 24-hour timeframe. These professional traders can then be responsible for directing other ordinary-class traders on what to do via live chat or some other cheap and fast means such as an electronic bulletin board or mailing list.
This way, the advantages of self-directed trading can be leveraged and the full potential of a forex trading business realized. Nevertheless, for an individual forex trader, automated forex trading would be the best bet given the advantages of savings in time, money and effort.
In conclusion, we see that in as much as computers cannot be used to completely automate everything that humans do, automated trading cannot completely phase out self-directed forex trading.
 

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