Manual Trading

First in a series of the various types of trading.

#1 In a series, meant to give a fundamental overall meaning to the various types of trading done in the DEX’s, Forex Markets, and Stock Markets. These may not cover all categories or go totally in-depth but give an overview for a basic understanding.

A Manual Trader lists his trades and enters the market without using Algorithms. While algorithms automatically enter trades that follow a programmed, pre-determined set of rules.

I think we can all agree that the realm of trading is corybantic and not for everyone. Manual Traders could be at a distinct advantage, especially against the traders who prefer to capitalize on their computing power to take advantage of the deviations in market prices.

Manual Traders can naturally succumb to emotional trading in comparison to traders who all but eliminate that variant by using an automated trading program.

How a Manual Trader Works

As the name implies, Manual Trading is done by hand and therefore could easily be inaccurately posted. This could seriously put the trade order in peril with disastrous outcomes, especially if the trade error is large. Is it any wonder then that manual traders rely more and more on automated trading, which allows them to take advantage of application programming interfaces? (API)

I believe many Manual Traders seem to forget that they must maintain the mental discipline to focus intensely on what they are doing. They have to be fastidious at monitoring the markets and their own trades to maintain the correct, current prices and quantities and ensure they execute the proper sell or buy orders they intend.

Program Traders (automated) prefer to rely on Algorithms and Computing power to submit virtually error-free trades. They can enter trades much, much faster than a Manual Trader as well. This ability enables the Automated Trading system to take advantage of any “mispricings” entered by novice or “lackadaisy” traders who are left wondering what happened to their funds. Yes, the markets are unforgiving, and you cannot recall any losses!!

Advantages and Disadvantages of Being a Manual Trader?

Have you heard of FOMO? (Fear of Missing Out) Unfortunately, Manual Traders are prone to emotional decisions such as fear and greed. This characteristic could cause minor to major harm if the draw of “easy money easily sways a trader.” The adage “a fool and his money are soon parted” comes to mind.

Despite being susceptible to FOMO, Manual Traders can pick up on market signals that algorithms cannot determine, such as a declining market volume or an unusual spread in buy/sells in a singular market asset. Algorithms trade according to strictly programmed rules given them, and Manual Traders are adroit and can respond to news of mergers, competition, investigations into companies, power outages, and the like.

I can see advantages on both sides of the coin. Manual Traders, it seems to me, have greater control over their trades; however, incorporating Automated Traders using algorithms such as with trading bots does seem to have certain advantages.

Next we will explore deeper into Automated Trading or Automatic execution, black-box trading, etc.

About the author

Born in Illinois and the third oldest child of 10 children. Gail learned many lessons in life that would serve her well in her future. Patience, sharing, compassion, understanding, love, and acceptance were a way of life. Family is significant to Gail as a mother of three herself.
Gail lives by the motto "live and let live," and she takes pride in helping others. Educated, yes, but believes life is the best teacher and learning depends highly on an open mind.

Comments

  1. Thanks for this primer in Trading. I am looking forward to learning about other forms of trading as well. It is interesting, even if I don’t understand it yet. One day perhaps, a bell will go off, and it will all come together for me. Looking forward to more learning!!

  2. Being brand new to the crypto world I had no idea about manual trades or any other type for that matter. I saw “manual” and immediately thought of an old car I had with manual transmission. I doubt it’s anywhere near the same but I suppose in principal it would be.

  3. Wow, great breakdown of the two types of trades. Something I would need to read over a few times. I get the jest of it but would need to re-read to have the phrasing sink in better for me. I look forward to learning more and more on this subject.

  4. Thank you Gail, Very good information,manual trading involves human decision-making in a way, risk of loss in the manual trade may be higher,algorithmic trading is profitable,developing a logarithmic trading strategy is quite simple, provided you do everything right,anyway trading skills of any kind are very important.

  5. Much appreciated Ms Gail on the basis of trading. The two types of trading are so widely explained in this blog. Manual trading indeed can be quite risky especially having involved the emotional factor. How one handles their emotions during a manual trade without the assistance of a Bot is the determining factor of making profits or losses. I’ve learnt too in my few moments of day trading, that greed can widely affect ones’ judgment of the algorithmic patterns thus having a downtrend of losses.

  6. This is very informative, especially for someone aspiring to learn more about the techniques and technologies involved in virtual currency. I enjoy acquiring new information where my businesses are concerned, and I am fully committed to growing in the skills and knowledge required to help me excel in this avenue. I am looking forward to learning more about automated trading versus manual trading. Thank you, Gail.

  7. More wisdom from Gail. Excellent. I actually enjoy manual trading. It can be a ton of fun playing the ups and downs and coming out ahead. It can even be fun when coming out behind because the first rule is to not use any funds you can’t afford to lose. Emotion (FOMO) doesn’t belong in manual trading, but can appear when things start to go south. Beware and always use your head.

    Robot trading is something that is coming mainstream and also works very well when one doesn’t have the time to spend focusing on computer screens all day.

  8. Thank you, Gail for this trading tutorial information. The use of the word “corybantic” which I had to look up its definition (means wild or uncontrolled) exactly describes how my attempting to trade could end up! To be a manual trader certainly needs a strong discipline. I thank Henry and his staff for the introduction of virtual assistants, and will save my corybantic behavior for on the dance floor 🙂

  9. Gail, I am looking forward to the rest of the series on the subject of Manual Trading. As always, you come up with informative and timely topics.
    On the subject of our own Virtual Assistants, how are they classified? My thought is that they are manual traders, but with the emotion removed, as they are only doing what we ask of them.

  10. this is so informative on the Trading world — I just have read this once but am destined to read several times and when Gail takes time to put step 2 and 3 and so on for us to learn from — oh Yeppers this is that good on the info scale — so much Appreciation and Respect for this —

  11. Manual trading. Thank you for how much information it brings to my attention with a better understanding. I recently saw my son do some day trading and I never understood really why every time he gained money, out of greed he’d loose it all. It is so key to eliminate emotions out of manual trading and incorporate good strategies and secure, reliable bots that can automatically trade with the right algorithms.

  12. Thank you Gail for an excllent overview,
    Day manual traders have also discovered that Bitcoin is lucrative for many reasons:

    1. Because crypto trading is more volatile than stock trading, .
    BTC is traded 24 hours per day 7 days a week.

    2. BTC allows for big trades with low overhead
    Multiple tradings can be done within a 24 hour period,
    when we know what we are doing.with manual trades.

    I have been looking forward to learning more on this subject verses bots etc..
    as it makes an interesting topic.

  13. I always cringe when I consider manual trading, and you’ve described some of the very reasons for that reaction – emotional responses to fluctuations, FOMO, etc.. I admire the rare Manual Trader who has that uncanny intuition-and-skills combination that brings him/her success, more than loss. But for me…I feel that even a savvy Manual Trader is wise to use some sort of AI trading software to help!

  14. Okay now to follow up on the last blog you posted. Manuel trading, as you pointed out, can be an emotional type of trading. That got me personally in trouble quickly while trading. Automated trading gives a little leeway or breathing room. Bottom line is that no matter what type of trading one does it can never be a set it and forget it action. As Compumatrix opens her doors each member will have to decide for themselves what is the safest method. I know I will be playing it safe by handing mine over to the VAPE program as soon as possible!

  15. Sophye, When I traded in commodities a long time ago I had a broker in Michigan that only traded with certain stocks and commodities and his approach was that he could know everything there was to know about a few select trades than to know them all, and he was a millionaire and this was his advice to me. He also was a master at hedging the risky trades to allow him a safety zone. I do like the pre-programmed safety of automation and algorithms, but very few millionaires are made these days on a single trade; because the volatility is minimized by billions of calculations per second. Thanks Gail!!

  16. Thank you, Gail. Trading manually, if you are not very experienced in this, is extremely dangerous. You can lose everything you have. Automatic trading is also a dangerous thing. The best option would be to hire someone who understands this, for example, a virtual assistant. They will be very useful to us.

  17. Again, Gail, your blog confirms my intention to do no personal trading by myself. I am thankful that through Compumatrix, we have access to VAs who will, per our instructions, implement trades for us. They watch and monitor the exchanges for us and perform other duties that we deem needed. Manual trading is the way of most, but it is inspiring to be exposed to this technological world of wonders and have assistance and peace of mind along the way.

    1. Agreed Carmen. I will leave ALL trading, manual, automatic or otherwise to the PROS. I attempted to buy some CUSD with CBTC in the DEX and I messed up big time, so I will leave the for the VA to do for me. I’m so very grateful for the VA program this will be a tremendous help for those of us who don’t know how to trade and don’t have the time, energy or brain power required to lean.

  18. First thing taught to me about investing and or Trading was “Never put All your eggs in one basket”.From this blog “For me Personally” Automated Trading would be the way to go,as I learn to become a more “savvy” trader via small manual trades.Therefore I too see the advantage of both Manual and Automatic Trading.However, I must say I believe “A.T.” has the Greatest Advantage especially when it comes to the speed at which a trade is placed.

  19. Manual trading just seems like if you are not super accurate and know precisely what you are doing. Just pay someone, it’s worth it. You are helping someone and creating work and def making more than what you pay, I’m assuming. No reason to attempt something you have no business doing. Some of us have no idea or cause for even trying. Just pay a VA. Wouldn’t you rather be out enjoying some of your money and help someone out? I plan on going that route.

  20. Hmm. What a wild word for manual trading–Corybantic! I had to look it up… “Madly agitated, or inflamed like the corybants.” So then, Corybants… “The CORYBANTES are represented as a kind of inspired people, subject to Bacchic frenzy, and inspiring terror at the celebration of the sacred rites by means of war-dances, noise, cymbals, drums, and arms.” (from http://www.maicar.com/GML/CORYBANTES.html) Hopefully, not OUR manual traders! I find lately that when I go in to trade, that I am utterly relaxed and attentive. Perhaps the corybantes are what NOT to be, when trading! Thanks for the adventure into mythology, Gail! I am looking forward to the moment when I can do a BTC- USD trade in order to qualify. I am pretty confident that with care, I can do a fractional trade that won’t disrupt the prices. It really is as simple as being mindful.

  21. Very nice reading Gail. I have been in Compumatrix for some years now and everyday I am learning something new. Reading your blog Gail shows me that no matter how much I think I know there is still a lot that I don’t know. My son has a lot of work of work cut out for him because he has to work for both of us. I will learn and work as best as I can but I am glad that he is in my corner.

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