There is a long list of advantages to having a computer monitor the markets for trading opportunities and execute the trades.Automated trading software also called robotic trading minimize emotions throughout the trading process. By keeping emotions in check, traders typically have an easier time sticking to the plan. Backtesting applies trading rules to historical market data to determine the viability of the idea. When designing a system for automated trading, all rules need to be absolute, with no room for interpretation (the computer cannot make guesses – it has to be told exactly what to do). Traders can take these precise sets of rules and test them on historical data before risking money in live trading Because the trade rules are established and trade execution is performed automatically, discipline is preserved even in volatile markets.Automated trading systems allow traders to achieve consistency by trading the plan. (It’s impossible to avoid disaster without trading rules).Since computers respond immediately to changing market conditions, automated systems are able to generate orders as soon as trade criteria are met.Automated trading systems permit the user to trade multiple accounts or various strategies at one time.
If you find online trading or investing in the stock market is confusing, here is an article to help you out. It includes 8 best online stock trading tips that are proven to work. If you’re new, make sure you spend some time reading this article before putting your hard-earned money at risk. Even if you have invested or traded in the stock exchanges before you should find some excellent tips here that can help you increase the profits in your portfolio.
Here are the 2 best online stock trading tips that work:
1. Choose a reliable brokerage firm.The brokerage firm should have a very reliable web-based or online trading platform that allows you to trade anywhere in the world as long as you have a PC and the Internet connection (and an brokerage account as well of course). The broker should charge a low commission for each transaction ($1 per transaction is the best we have found so far). The platform must also allow you to create both buy and sell orders before the market opens.
2. Find a simple but proven trading system.The trading system you choose should be able to help you to find or screen stocks that meet certain preset criteria. It should also be able to give you very clear entry and exit signals. This two features are must so that you can easily find the stocks that meet your criteria and set up your trading plan without wasting too much time on research and analysis.You can opt for automatedtradingsoftware, this is one of the best in the industry.