The Advantages And Disadvantages Of An Auto-Trade System
More and more people are choosing to play the stock market these days, often in a part-time or even occasional manner, so an automatic stock trading system is the answer for traders who also have a day job or a busy family life.
An auto-trade system, or robot, is software that follows a set of rules created by traders to determine buying and selling points for stock or currency. This software can monitor stock markets all over the world, 24 hours a day, allowing the trader to get on with daily life (or sleep). The main advantage of an automatic stock trading system is that it is just a system – a robot – and will follow rules blindly, without jitters, without emotion. It will carry on following these rules all day and night, until it’s time for a change.
A lot of new traders start off in the foreign exchange market, and it’s here that a lot of the robots come into their own, as the Forex operates around the clock, and there are constant small gains (or losses) made. There are many types of automatic Forex trading software available, and they all do pretty much the same thing – buy and sell currencies according to market fluctuations.
It seems like automatic stock trading is foolproof – you just sit back and watch your account grow, but a major downside for people who use automatic Forex trading software, or any other trading robot , is that they rely on the software too much. Traders should remember that the robots are tools, not traders in their own right. You still have to understand, monitor and intervene occasionally.