Discretionary vs mechanical trading

Discussion in 'Trading' started by AshanD, Feb 15, 2006.

  1. bitrend

    bitrend


    Agree, the Master (you) always have the last word.
     
    #21     Feb 15, 2006
  2. ilganzo

    ilganzo

    My take...
    Both styles look for patterns.
    Discretionary trading...
    - can not handle a large number of transactions at the same time
    - has to win emotions
    - risk of human error
    - slower execution
    + can deal with unexpected conditions and new variables immediately
    + adapts faster
    + doesn't need to be programmed (no risk of programming error, no development time and related costs)

    Mechanical trading...
    The opposite of the above.
     
    #22     Feb 15, 2006