I believe that sighted shooting has a real benefit even for close range practice as it reinforces the basics. As skill level increases with sighted fire then gradually introducing instinctive fire or point shooting will produce much better results. While it will vary from one individual to another, point shooting, instinctive shooting or "speed rock" shooting requires a great deal of live fire practice. Both forms of shooting are valid techniques to learn and practice. In an actual encounter, being able to instinctively get rounds on target, quickly, as you move to create distance so you can transition to sighted fire can be life saving.
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