Manual Trading

AAA

DEFINITION of 'Manual Trading'

A trading system that involves human decision-making for entering and exiting trades. This is in contrast to automatic trading, which employs programs linked to market data, which are able to originate trades based on human instructional criteria. Manual traders often employ computer programs in order to consolidate information. In some cases, they may also set automated indicators to alert them to potential trading opportunities. However, in all cases, human input is required to authorize trades.

INVESTOPEDIA EXPLAINS 'Manual Trading'

There is an ongoing debate as to whether automated trading is advisable or not. Currently, most traders believe that manual trading is superior, since human judgment is required to gauge market trends and control risk. They feel that the proper place for automation is in monitoring data and consolidating it for human interpretation. However, proponents of automated trading argue that this method is superior, since it takes irrational human behavior out of the equation. This debate is likely to become even more relevant as programmable trading continues to become even more sophisticated.

RELATED TERMS
  1. Mobile Trading

    The use of wireless technology in securities trading. Mobile ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely ...
  3. Ultrafast Trading

    A lucrative and highly competitive method of stock trading that ...
  4. Flash Trading

    A controversial computerized trading practice offered by some ...
  5. High-Frequency Trading - HFT

    A program trading platform that uses powerful computers to transact ...
  6. Wall Street

    1. A street in lower Manhattan that is the original home of the ...
Related Articles
  1. Forex Strategies

    Trading Forex Trends With MACD And Moving Averages

    Although based on short-term trading, keeping the long-term picture in mind will help investors trade with the trend.
  2. Options & Futures

    Losing To Win

    Adopting realistic expectations is essential to staying in the trading game.
  3. Options & Futures

    The Importance Of Trading Psychology And Discipline

    Find out how investing success can be more about your mindset and less about the markets.
  4. Forex Education

    Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.
  5. Active Trading Fundamentals

    2 Indexes That Help Assess Market Behavior

    The Herrick Payoff Index and New-High New-Low Index are some of the more interesting (and often complex) measures of crowd psychology.
  6. Options & Futures

    Can Insiders Help You Make Better Trades?

    Find out why the trading activity of owners and executives can be a valuable trade-confirmation tool.
  7. Trading Strategies

    What are common trading strategies when identifying a double top

    Learn strategies traders use when a double top pattern is spotted. This pattern is common and can be profitable in the equity and currency markets.
  8. Trading Strategies

    How are Outside Days interpreted by analysts and traders?

    Understand the meaning and significance of outside days and how they are interpreted as trading signals by traders and market analysts.
  9. Trading Strategies

    How do I build a trading strategy after spotting a breakaway gap pattern?

    Capitalize on the irrational exuberance investors create, forming a breakaway gap. Learn the best strategy for trading a stock during this time.
  10. Trading Strategies

    What are common trading strategies used with the Double Exponential Moving Average (DEMA)?

    Learn how the double exponential moving average, or DEMA, works and how swing traders use this fast moving average to develop trading strategies.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center