What kind of trader are you?

Are you a mechanical trader? or discretionary trader?

Well, kung wala kang idea ito ang purpose ng article na ito. To know the difference between mechanical and discretionary.

At para mag karoon din tayo ng idea kung alin ang much better.

Most of us, without knowing are discretionary traders.

Bakit?

Kasi ang desicion making sa ginagawa natin sa trading ay discretionary or based on our judgement and personal bias.

Yung mga nakikita nyo na nagpopost ng mga chart analysis sa crypto twitter sa mga facebook page, tradingview, etc. Those people are discretionary traders.

Normally, lahat ng mga bago sa trading.

Discretionary trader

Ang decision ay nangagaling sa discretion ng isang trader. Masasabi natin na a subjective type of trading. Ang desisyon making ng trader na ito ay base sa kanyang nalalaman at pang unawa sa market. Although, mayroon syang strategy na sinusunod, pero pwede nya itong baguhin anytime—depende sa kanyang kagustuhan.

A discretionary trader is always subjective to behavioral bias na nakaka apekto sa decision making. And normally, they used a predictive type of technical analysis.

Mechanical trader

Ito yung uri ng trader na hindi nag dedesisyon base sa kanyang opinyon. An objective type of trading. Mayroon silang sinusunod na system. Ito yung trading system na nakaprogram sa computer. Pero hindi ito tulad ng mga trading bots.

May mga set of rules na nakaprogram dito based on their philosophy and market overview at ang isang mechanical trader ay kailangan sundin ang mga rules na naka set dito.

Traders rigidly follow these trading rules. A system will tell them if its time to enter and exit the market.

The good thing about being a mechanical trader is you are not making a decision based on your emotions.

Sinasabi ng iba na boring ang pag gamit ng mechanical trading system. Pero ang sagot ng mga gumagamit nito “we trade to win, not to be entertain.”

Tama nga naman.

Ang isang uri ng mechanical trading system ay trend following. And they used a reactive type of technical analysis.

Which is better?

It depends on your personality.

You can be both. A discretionary trader na may pag ka mechanical. Pero hindi pwedeng mechanical trader na may pag ka discretionary.

Dahil nga may set of rules na sinusunod ang mechanical trader. They can’t abide by the rules that may cause it to fail.

Pero kung ako ang tatanonging nyo, I think mechanical trading is better.
Although, I am not a mechanical trader, pero patuloy ko pa din ito pinag aaralan.

Sa dami ng nabasa kong libro about trading, I found that most of the successful traders have trading systems.

And they designed it for themselves, based on their personality. It has been tested in the history of trading.

Anyway, if you can make a substantial profit being a discretionary trader, then you don’t need to be a mechanical trader. Just find what works for you.