Discretionary trading is decision-based trading that tends to incorporate all forms of analysis. Traders decide which trades to make not only based on their well developed trading procedures and knowledge of the fundamentals and technicals, but also sometimes intuition and experience. Based on their experience, discretionary traders tend to flexibly formulate trading rules and adapt to the current market conditions.
The disadvantage of discretionary trading is that trading decisions are susceptible to the psychological whims of the trader. Also, traders need to pay more attention to the market based on the time frame, compared to the system trading strategy.