For some forex traders, deciding on one trading method can be a difficult decision. On one hand, mirror trading is a preferred method for those who would prefer to follow the tested methods of experienced traders. On the other hand, for those who have good instincts about the market and who take their time to research about currencies, manual trading can be fulfilling. It’s important to know the advantages of both methods for successful trading.
For those that are just entering the world of forex trading, the quickest and easiest way to get started is by following manual trading. Manual trading allows a trader to open and close their positions at any time of the day. Opening a trade is relatively straightforward. Simply make a deposit, choose a currency and decide which direction it will head. Set your leverage and your stop loss/take profit, if desired, and open your trade.
A player can do these steps any time of day. If you are advised of an economic announcement, thereby causing the USD to spike, you can immediately get on board and open a trade right away. Manual trading can be especially satisfying for those that are able to commit a considerable amount of time to watching the market.
Mirror trading by comparison, allows traders to select past strategies that are verified and objective, and then follow these strategies during their forex trading. Mirror trading is especially popular for traders who are still building their confidence in the market, though even seasoned traders can benefit from this type of strategy.
One of the most notable advantages of mirror trading is that traders do not need to be tied to watching the market all hours of the day. If a shift in a currency trend occurs and you are not able to buy or sell at that time, mirror trading will make the trade for you.
A second important advantage of mirror trading is that players have less of a chance of closing their trade due to emotion. A common problem encountered by traders is the fear of taking risks and losing money. Because mirror trading follows a set strategy, this problem diminishes.