As of recently, there has been debates about the better outcome of two forex trading strategy scenarios. The first one, the human’s trading capability, is where a human being would learn through trial and error and build a trading strategy. The second one is a software based platform which makes trades based on a proven trading strategy.
The title suggests that a software title, such as would be a clear winner in comparison in profits in comparison to a human trader building their strategy. Why does the author of this article suggest that an automated forex software system could have the possible advantage here?
Well, first of all, human beings have to gain experience through trial and error, losing money through mistakes and build their own effective trading strategy. While this sounds good and dandy, realize also that building an effective trading strategy doesn’t just take weeks or months, try years to build a strategy that works for them and the current market volatility! Livebet Markets do change and come and go, so how are you going to use the same strategy for a different market that make you lose your money even quicker?
Not only do we have issues with learning curves, but also you have to remember that humans are heavily emotional for when it comes to their money. Even if you are very secure and wealthy, if you were to see a major drawdown and lose your money, you would probably feel different and act a bit irrational. Even the best forex traders out there sometimes get a bit crazy if something goes on an extreme one direction or another.
Another thing as well, is seeking opportunities in trading. Humans cannot stay awake for 24 hours straight, it is flat out impossible to be coherent and make rational decisions after staying up 24 hours. You also want to get out and have fun with your family and be social with buddies and have a good time too! You are not a machine and you are not going to find every single notch of opportunity, even if you were to be insane and manage to stay up many hours to trade forex everyday.
It is just not possible.