Discretionary Trading
Discretionary trading is an investment approach where traders make buy and sell decisions based on their own judgment, experience, and analysis of market conditions, rather than relying solely on automated algorithms or quantitative models. It involves interpreting economic data, news events, technical charts, and market sentiment to identify trading opportunities. This method emphasizes human intuition and adaptability in dynamic financial markets.
Developers should learn discretionary trading when building or integrating trading platforms, financial analysis tools, or algorithmic trading systems that require human oversight or hybrid approaches. It's particularly useful in scenarios involving complex market events, regulatory compliance checks, or when developing user interfaces for professional traders who rely on discretionary decision-making. Understanding this methodology helps in creating systems that support both automated and manual trading strategies.