Manual Trading VS Automated Trading-Binoption
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Manual Trading Vs Automated Trading: Is Automated Trading More Profitable Than Manual Trading?

Manual trading vs automated trading. Which one is more profitable? To know the truth that you are searching for, read this article till the end. 

Automated trading is not inherently profitable than manual trading. But definitely, it is more profitable than manual trading. For an investor, investment is a process where automated trading or automation is a logical conclusion.  

In automated trading, the risk is yours. One wrong move can make you helpless. However, all sort of investment carries a high risk for traders.

On the other hand, trading via automated software can go fast or slow. It also depends on the robustness of your design. Additionally, a robot is not something that you can do over a week. Operating a robot software without strategy is like you are sitting in a car without a steering wheel, accelerator, or brake pedals.

We will break down each part precisely so that we can draw an outline in front of our traders. Let’s start with a small introduction to manual trading and automated trading.

What Is Automated Trading

What Is Automated Trading Software - Binoption

Automated trading is a program that generates profits depending on market analysis. Trading robots work on behalf of traders. Algorithmic trading also allows traders to set specific trading rules. Once programmed, trades will be automatically executed via a trading device.

Trading robots monitor asset price movements and carry out trades according to the preset rules. However, you have to find the perfect trading system for automated trading. Below, we have listed some ideal trading software that guarantees profits.

The automated trading bot works based on the command. Either you can input data after analyzing the market or use the built-in settings. You don’t need to sit in front of the monitor after giving the direction. The trading system will trade without emotion. 

It is simple to operate but not easy. The simplicity of a bot is, one can even use who do not understand its sophistication. It must take time, time, dedication, attention to design a profitable booming trading system. 

What Is Manual Trading

Human decisions involve in manual trading. It’s a process where traders and investors input their strategy by using different charts and tools manually. Traders, when entered into the financial market by a human, is counted as manual trading. That means you are sitting in front of your computer or mobile for opening and closing trades by the click of a mouse. 

Additionally, sometimes manual traders assisted by trading software in making their trading decisions. But most of the time in manual trading, traders analyze the market and place buy or sell orders manually. 

On the other hand, a trading analysis is mandatory for traders to find out when to trade and what to trade. In manual trading, experienced traders use technical analysis and fundamental analysis to build a profitable trading analysis. 

Why Traders Fail With Automated Software

Why Auto Trader Fail-Binoption

Not only binary option robot, but also automated trading is highly attractive by novice traders who are still learning how to trade. It is also popular because it does almost all trading works. Thus, trading emotions are not completely involved with automated trading, but traders often fail for some reason.

The way traders designed a profitable trading system is fully counter-intuitive. People think of the best possible outcome when they design a strategy.

On the other hand, you need to design automated strategies with failure in mind, always.

The other part of that you can’t overlook that not involving much with the trading world. It is wise not to rely upon the trading robot fully. The robot has less supervision power than a human. Because an auto-trading requires a pre-determined strategy.

So, for the best result and profitable outcome, a trader must have to analyze the market movement before running the trading software. Generally, when people think about failures, they think about stop losses or blow-up accounts. It is not the main issue of your failure.

Why 90% Of Traders Fail In Manual Trading

A manual trader generally makes a way to buy and sell trading positions depending on the asset price movement. They carry out trades based on their own abilities. But 90% of traders are still accepting their failure.

In this phase, our mission is to help our readers overcome the failure and achieve the best profitable outcome. However, the reasons will vary traders to traders, but these are the primary cause of failure.

Backtesting:

You may hear about the demo account. A demo account mostly used by traders to test the platform before trading live. Not only to test the platform, but it is also necessary to build a strategy. On the other hand, backtesting is not only for automated traders, but manual traders should also do it. It will show you what to expect from a strategy and give you a trading database to compare your live trading results.

To learn the importance of a demo account, you can read this complete demo trading guide.

Lack Of Education:

Lack of trading education can be another reason for failure. Success in trading depends on how much you have learned before performing the first trade.

It is a serious business, you have to get the best education possible. With the help of trading knowledge, you can improve your trading skills. Moreover, it is a magic wand to make constant profits.

Trading Emotion:

Trading emotion is a personal feeling. Moreover, it has an impact on decision making. Bringing emotions into trading is a bad idea, but sometimes it is helpful for traders.

Unfortunately, traders allow emotions to take over their trading. Removing emotion from trading is not easy. It is the most difficult thing for traders.

Money Management:

Money management is the key to success, especially when the market gets volatile. By following this rule, one can save their funds. Risk management is mostly necessary for traders who trade with leverage. In binary options trading, traders do not use leverage to execute trades. 

On the other hand, as per rule, traders are recommended to invest 2% of the money from the capital. It also ensures the long-term sustainable return from binary options. 

Trading Plan:

The trading plan is a guideline for traders on how to trade and when to trade. A basic trading plan includes entry and exit point of each trades, trading time zone, and market movement. 

Moreover, a trader will decide either he will make a short term trading plan or a long term trading plan depending on his trading nature. 

Is Automated Trading Profitable?

Is Automated Trading Profitable-Binoption

Trading profitability depends on the strategy that once makes to place an order. Either you do manual trading or Algo trading, a trading strategy is a first and foremost thing for traders.

You can grow account instantly by an auto trading system. But it is not always profitable for those traders who are too lazy to research the market. Note that the trading robot itself is not successful without the correct strategy.

Anyone can create trading bots according to the market movement. You don’t have to be a programmer to run a bot. Moreover, you can only bring a profitable trading environment if you follow these rules: 

  • Analyze the trading market with the help of the economic calendar. 
  • Do not execute more than 1 trade per day
  • Avoid high volatility market
  • Do not fully rely on trading robots

Best Automated Binary Options Trading System For 2020

In the options world, you will find many binary options trading robot. As these robots are not regulated by any regulatory bodies, so it is difficult for novice traders to find legit automated trading software. 

On the other hand, all trading bots will not perform the same all the time. So, based on the performance, results, and profitability, we have selected these below trading bots BinBot ProBinary.com Auto trading Bot, and CentoBot

BinBot Pro

$ 250 Minimum Deposit
  • Returns up to 90%
  • Demo Account: Yes
  • Robot Profitability:300%

Binary.com Bot

$ 5 Minimum Deposit
  • Returns up to 80%
  • Demo Account: Yes
  • Regulated and Trusted

CentoBot

$ 250 Minimum Deposit
  • Return up to 95%
  • Demo Account: Yes
  • Regulated and Trusted

Best Broker In 2020 For Manual Trading

As we have already mentioned before, the human decision involved in manual trading. So, picking the right trading broker is the first for traders. 

The broker must be regulated. We are recommending the top and best trading brokers for 2020, depending on the current trading results and performance.

IQ Option, Binary.com, and BinaryCent are leading the binary market. These brokers are regulated and offer various features for traders. 

IQ Option

$ 10 Minimum Deposit
  • Regulated: Yes
  • Maximum Payout: 93%
  • Demo Account: Yes

Binary.com

$ 5 Minimum Deposit
  • Regulated: Yes
  • Maximum Payout: 100%
  • Demo Account: Yes

BinaryCent

$ 250 Minimum Deposit
  • Regulated: Yes
  • Maximum Payout: 95%
  • Demo Account: Yes

Manual Trading Vs Automated Trading

We will find some minor differences between manual trading and automated trading. Both trading types are profitable if you have prior knowledge of trading. But the question that you want to know which trading method is more profitable? 

Certainly, there are some advantages and disadvantages to both methods. The hardest challenge that many manual traders faced is to trading psychology. For traders, it’s nearly impossible to stay calm and rational in the loss period as well as the profitable period. 

Traders often failed to follow simple rules that lead to the destruction of many trading accounts. For these cases, people prefer automated robots. 

But think logically, if you are unable to follow your rules using manual trading, is it going to be any different when trading with robots? So, stick on your rules and never ever doubt your robots. 

On the other hand, the trading market is unpredictable and shifts constantly. In particular circumstances, the robot isn’t able to react as a human does. You can also consider that manual trading is time-consuming. 

A lot of traders unable to spend countless hours in front of the trading monitor as they have day jobs. The bottom line is that either you trade manually or an automation system, it is more important how you execute your trading plan. And also what logic behind your trading plan. 

If your trading plan and strategy flawed in the first place, it doesn’t matter either you are a manual trader or an automated trader. 

Advantages Of Binary Trading Bot

An automated trading bot whether it for binary options or other trading assets provides multiple benefits: 

  • No trading emotion is involved
  • Trade at the best possible prices
  • Instant and accurate placement of the trade order.
  • Low transaction cost
  • An automated free signal generator
  • The trading bot saves time
  • More accurate than manual trading
  • Improve trading diversification

Final Words

Finally, the manual trader mindset is different than an Autotrader. You have to trust the system and its performance. Another good news is that you can monitor the market on your flexible time. However, it is best to select a time -frame.

After being an Autotrader, now I can go out and drink some coffee or tea or both, while the machine keeps trading on behalf of me. I can also enjoy my favourite tv shows in the middle of trading. It is an incomparable feeling of freedom. 

You can also enjoy your life like mine!!

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