Trading comes in so many ways and it has transformed ever since it was introduced to us. Nowadays it is possible to trade any-time and anywhere you are with just a few clicks. With this being said, the online trading methods have evolved in the past years to an extent where it is possible to let a machine does the work for you. This method of trading is called ‘Automatic Trading’. In this article, we cover the advantages and disadvantages of automatic trading.
The advantages of automatic trading
- Online forex traders and investors are subject to strong emotions that sometimes affect their trading skills or the ability to trade successfully. By using automatic trading, you will avoid getting emotional since robots will use the automated program or use the programmed orders without involving emotions.
- The robots also respect your online trading strategy. As long as you program it, it will follow your forex trading strategy.
- A trading automaton also responds faster and makes decisions quickly. It also has the ability to multi-task and handles thousands of operations at the same time.
- With automatic trading, you don’t have to work. You can relax and sip your coffee. It does all the work for you.
- Robots do not suffer from exhaustions or fatigue unlike human beings. They work every day, during the day and during the night without getting tired.
The disadvantages of automatic trading
- Automatic trading uses artificial intelligence. This means that trading robots use the knowledge you give them and do not think alone and might be unable to adapt to your online trading strategy in the foreign exchange market.
- Using the robots trading means you must be able to programme. You must understand programming languages if you want it to work alone.
- Robots or machines do not have emotions, so you must tell them what to do. Give them logic because if you don’t give them, they won’t understand what you are trying to do.
- Using the automatic trading means that you reply on research and development instead of moving with the trends.