Binary options trading has never been so widespread and popular in the past few years. In fact trading online is so mainstream today. However, one crucial element that tends to get overlooked is the essence of binary options trading. Yes, today's topic is about differentiating between the various trading options available. Traders sometimes tend to get misguided in the way or perhaps lack the necessary information before indulging themselves in trading. The distinct purpose of this blog post is to create more awareness among binary option enthusiasts. Binary options robot aka auto trading and manual trading are the main stars in focus today.
Binary Options Robot Trading v/s Manual Trading
Before proceeding further, both concepts need to be understood. Auto trading and manual trading are the opposite of each other, colliding on the way to binary options trading. First let's have a look at automated trading:
What are binary robots?
There are numerous terms that are used to call binary options robot, but basically they are just the same component. Auto trading simply refer to hands-free trading, that is, as a trader you only invest and let a robot do the work for you. When it comes to the robots now, they are intelligent software that calculate asset trends in seconds and are programmed to place transactions the moment there's a financial opportunity. The automation, rapid executions and return on investment are the principal features that conquer most traders, especially those who lack experience in trading.
Here's how it works:
- Register for autotrading
- Fund your account
- Activate the robot
Auto trading has its own set of advantages and can be the best alternative for those not yet acquainted to manual trading. Some traders opt for bots essentially because:
- They are unfamiliar with binary options trading
- It requires a minimum of $250 to open an account
- It is effortless and time-saving
Manual Trading in the limelight
As explained above, manual trading is the complete contrary of bots. Here, the usage of the trading platform, one's ability to analyze the market and mastering trading tools are the predominant features. Actually traders require some know-how in order to take the leap for manual trading because it requires a lot of self-analysis and skills to spot trading opportunities.
Here's how it works:
- Open and fund your trading account
- Get acquainted to the trading platform
- Spot an asset, a trading tool & study the fundamental and technical aspects
- Analyze, execute and monitor transactions
One common mistake that traders make is that they are unable to differentiate between the different types of trading. Consequently, when they are funding their account, they lack information in terms of what they are required to do. Below are two scenarios that traders often juggle with:
I funded my account but there are trades which have already been placed!
Yes! This is very probable. The moment you activate auto trading, the robots will instantly spot financial opportunities. Consequently, the software will execute transactions which you can review in the open/expired position section once you login into your trading account.
I have activated the robot but nothing is happening!
The software you have registered for is programmed to place transactions based on rapid analysis. If there's no financial opportunities, the robot will stay idle. One essential tip for traders finding them in situations where their invested money is not bringing the required ROI, simply deactivate the robot. The next step would be to switch to manual trading and even try social trading where you can have greater control on your funds.
Elements to consider before opting for Manual Trading
Manual trading is considered to be the best option for higher return on investment, however, unless traders master the basics of manual trading, it can turn out to be harmful. With this alternative, strategies need to be deduced, much time must be spent over economic news as well as on technical analysis. Although it can be more time-consuming, but success is guaranteed.
Below are some points to consider:
- Remove quality time for learning
- Find a resourceful financial media outlet to remain updated
- Use trading tools to their full potential
- Take the guidance of an Expert Trader
Which type of trading is ideal for me?
The debate here is not about which is the best trading option. In fact each trading alternative can be of help to different category of traders. Also, besides of manual trading and robot trading, traders can also find trading signals as well as social trading. The rapidity with which the industry is growing, new add-ons are being sourced out to turn binary options even more enthralling.
This kind of trading is more suitable for beginners in the industry for a limited time until they get more familiar with the trading platform. Nevertheless, some advanced traders also insert auto trading in their strategies to diversify their portfolio. At BigOption, we provide auto trading solutions to traders who wish to adopt 100% hands-free trading, and is offered for free with specific types of accounts. One possible strategy is to go for the Gold Account for instance and then invest part of your money in robot trading to get the taste of it.
Manual trading is convenient for all type of traders but novices should take less risks when it comes to the trading tools. If ever you are interested in options trading but do not want to try auto trading, you can request the guidance of an expert trader. Likewise, BigOption proposes a Beginner's Webinar for novices who want to learn with a financial expert. Traders who wish to register for the webinar can contact the BigOption Support Team on [email protected]