Online Trading Reviews: 4 Methods to Mix Automated and Discretionary Trading

There's always been a discussion about what type of trading is better, automated or discretionary. Folks within the Foreign exchange community read online trading reviews , trading articles, watch trading videos, and are always trying to get as much information and resources as they can. The thing is that many of these traders become overwhelmed with the big quantity of information accessible on the internet. In addition, frequently they are fooled by so named “Forex gurus” who often don’t even trade the markets and are actually just web marketers.

 

My team of traders and I have found that to become successful , a Forex trader must find a balance between automated trading and discretionary trading. You are about to learn 4 tips on how you can efficiently combine automated FX trading with manual or discretionary trading.

 

 

Machines are just machines and human involvement is required:

The utilization of technology has completely changed our standards of living and has transformed our world into a world of convenience. As a result most people are always looking for instant gratification, nevertheless; Forex currency trading is the wrong place to look for it.

 

 

Several people assume that buying a trading robot is going to change their life and make them rich overnight. A trading robot might produce you decent gains but to really maximize its performance human participation is needed. The simplest way you can maximize your automated software’s overall performance is through the implementation of discretionary trading.

 

Some of the most successful discretionary techniques that can be used to improve your robot’s performance are: discretionary take profits, scaling out your positions, reducing a positions risk, among others.

 

 

Machines commit mistakes too! :

 

 Automated trading systems are based on complicated mathematical algorisms that can be impacted by any modifications you make to the trading system’s variables. For instance, if you double the risk that the trading system takes per trade, this could jeopardize the results and even the money management strategy that the system uses.

 

 

How to use automation to put your emotions aside:

 

 Automation can be quite helpful since it allows you to automate the execution of your trades and also the risk control tasks involved in trading.

 

When you let your automated trading strategy to measure the best entries, exits, stop loss levels, and take profit levels, you will be able to put your emotions away.

 

Letting your emotions get on the way is a mistake that most FX traders make. When you take emotional trading decisions you are more likely to make irrational decisions and take higher (and unnecessary) risks.

 

 

How to put together a balanced trading plan and approach:

 

 Putting together an effective trading plan that has a excellent balance between automation and discretionary trading is easier said than done. On the other hand, one can accomplish this by just adjusting the trading system to his/her own individual trading goals and personality,

 

Make sure to always conduct proper backtesting, read online trading reviews, and be constantly developing your trading skills. As I always tell my traders, when you put it all together making money from the Forex becomes second nature.

Best wishes,

Jay Molina

Pro Currency trader and Instructor

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About the author

Jay Molina is an advanced Forex trader that helps other investors around the world to learn about the Forex market and its rewards and risks. Learn how does online trading reviews affects your trading life, visit the link: http://www.myfxventure.com

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