Discretionary Trading
Trading where a human decides each entry and exit using judgement, rather than following fixed automated…
In plain English
Trading where a human decides each entry and exit using judgement, rather than following fixed automated rules.
In discretionary trading, you read the chart and news and decide trade by trade. The opposite is systematic or algorithmic trading, where rules or code decide.
Judgement adapts to new situations; it also invites fear, greed and inconsistency. Many discretionary traders still use written rules to keep themselves honest.
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