To improve your stock market investment strategy, automatic trading represents a revolutionary long-term solution.
How Automated Trading Works
Automated trading allows users who want to invest in the stock market to immerse themselves in the financial markets through a special program. This is a trading robot that executes defined rules to complete operations.
When an investor wants to embark on a trading adventure, he must carry out an in-depth technical analysis but also define parameters for the positions: opening order, trailing stops, guaranteed stops, etc. Once these parameters are entered, the trading robot acts accordingly.
Automated trading offers the prospect of opening many positions over a relatively short time. The robot frees the operations from any emotional aspect that could pollute decision-making. Since the position rules are pre-established in the robot’s parameters, the algorithms it deploys operate the decisions.
The advantages of a trading robot
Using a trading robot offers several indisputable advantages. First of all, it allows you to free up time on your schedule. The robot executes orders both day and night. It is available 24 hours a day.
In trading, emotional data is at the heart of the game. Emotions can lead to bad choices. They can make you make a bad decision that will lead you to lose money or miss the opportunity to make money. The robot reduces the emotional impact with its pre-populated strategy parameters.
By running all day and all week, the robot identifies new opportunities in line with your investment strategy. It also analyzes trends according to many indicators that you would not have time to review.
Finally, the robot executes several orders simultaneously. The elimination of manual execution offers the user a number of operations carried out much more quickly. Where humans can only perform one task at a time, the robot performs several at the same time.
Assets available with a trading robot
Several assets can be traded with a trading robot. Of course, it is possible to “trade” stocks of companies around the world for all sectors of activity. This is subject to your broker’s offers. Other assets can be explored:
- Currencies: Choice between major currency pairs, minor currency pairs, and exotic currency pairs.
- indices: possibility of trading with indices such as the CAC 40, the Dow Jones, the Nasdaq, the Nikkei 225, etc.
- raw materials such as wheat, oil, coffee, cocoa, gold, etc.
- cryptocurrencies, which are among the most popular investments today.
Trading robots offer efficient solutions to support you in your stock market operations. They save time and increase efficiency. However, there is one thing these robots lack: human intuition that allows them to make strokes of genius.
