Manual Trading vs Automation

Manual trading is a trading process that involves human decision-making for entering and exiting trades.

There are several reasons why Algorithmic Trading is better than Manual Trading. It performs complex calculations, it does not miss out on trading opportunities, and it faces no emotional conflicts that arise when you're making trading decisions.

Algo’s are perfectly disciplined and makes no mistakes

The robot will be fully disciplined and adhere to the trading plan you set up by an automated trading plan.

Proper execution will always be performed by a robot.

Trade with better discipline, better execution, and more range, but a robot is not tired either.

Manual Trading vs Automation

Automated trading is not a guaranteed money-making machine; however, many traders still opt for automation in trading, because it gives you sense of freedom from chaos.  Automated trading is nothing but following a set of process, when you follow a process, there will be a progress.

You become more disciplined, and this helps you to become a successful trader. Automated trading gives you more time than manual trading.

I once read this story long back and wanted to share that, because I could completely relate this to trading.

Manual Trading vs Automation

An Airbus Flight is on its way across the Atlantic. It flies consistently at 800 km/h at 35,000 feet when suddenly Fighter Jets appears.

The pilot of the fighter jet slows down, flies alongside the Airbus, and greets the pilot of the passenger plane by radio:

“Airbus, boring long flight, isn’t it? Now, have a look here!”

He rolls his jet on its back, accelerates, breaks through the sound barrier, rises rapidly to a dizzying height, and then swoops down almost to sea level in a breath-taking dive. He loops back next to the Airbus and asks,

“Well, how was that?”

The Airbus pilot answers:

“Very impressive but watch this!”

The jet pilot watches the Airbus, but nothing happens. It continues to fly straight at the same speed. After 15 minutes, the Airbus pilot radios, “Well, how was that?

Confused, the jet pilot asks, “What did you do?”

The Airbus pilot laughs and says, “I got up, stretched my legs, walked to the back of the aircraft to use the washroom, then got a cup of coffee and a cake”.

The Moral of the Story is:

When you’re young, speed and adrenaline seem to be great. But as you get wiser, you learn that comfort and peace are more important than thrill.

Don’t worry about the Jet planes surrounding you. Enjoy your Cruise mode.


Moral for us traders is that a peace of mind, within a set of rules and risks involved will be a smoother ride than a roller coaster of cheap thrills.

September 6, 2022

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