A forex trading system can be categorically defined as a method of trading foreign exchange that is primarily based on a set of analysis used to determine when to buy or sell a currency pair at a given point in time. Most forex trading systems are based on a series of signals which are derivatives of charting tools and essential news events. The latest forex trading systems are usually consist of technical signals that generate a buy or sell result when pointing to a direction that will led to profitable trade.
LATEST MANUAL TRADING SYSTEM
They are basically two forms of forex trading system which the manual and automated trading system. The manual forex trading system involves a forex trader sitting in front of a computer screen and making vital decisions on whether to buy or sell a currency pair. A manual trading system that involves humans or forex traders to make decisions concerning the entry and exit of trades. Here, human input and decision will always be needed in other to authorize trades.A Forex manual trading system helps a trader use qualitative factors to judge the current market factors which is not seen in an automated trading system. AForex manual trading system which has been repeatedly used in a current market can minimize losses in a great deal.
AUTOMATED TRADING SYSTEM
This form of trading system is entirely different from the former. Here, the forex trader tells the platform/software what trading signals to search for and interpretation of those signals. This platform entirely eliminates every form of a forex trader’s emotion and mental components of forex trading that often leads to failure, high risk and money loss. This form of trading removes time wastage by conserving time and energy used in the development of a trading strategy. It also eliminates trader’s dependency theory that states that every successful trade is based on the idea and experience of the trader. It always the trade to follow a strategic and well defined rules in trading strategy formation. This feature eliminates mistakes.
In conclusion, when it comes to forex trading, both automated and manual are both beneficial and fundamental to an everyday forex trader. They are both available for trading use and every forex trader should note that there is no guarantee when it comes to any form of trading system. No trading platform is 100 percent accurate. If there had no error or are considered perfect, nobody will like to make it publicly known. This sole reason is why most trading firms keep their trading strategy under high protection.
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