What To Look For In Automated Stock
Trading Software Packages
Automated Stock Trading is the process of fully automating
the trading in stocks and shares. This is quite different
to the various types of online trading, such as community
forex online trading or online commodity futures trading.
Community forex online trading has been available for over
10 years. Infact, since the internet made it possible for
anyone with a simple computer and a modem to access their
broker in real-time for receiving market information and to
transact. Automated Stock Trading, on the other hand, is a
more recent phenomenon. In relies on massive computer
power, artificial intelligence (AI), and that vague concept
of "fuzzy logic". These prerequisites have only been
available over the last few years.
So what is Automated Stock Trading? Simply put, Automated
Stock Trading is software that allows "you" to robotically
monitor the market second-by-second for all your buy/sell and
profit management conditions. "You" don't actually do anything
- the software monitors a myriad of intra-day data, indicators,
and conditions that affect the outcome of your trades. It's
faster and more efficient than you or any other human. It then
executes your trades automatically when the desired conditions
are met. Automated Stock Trading intelligently trades the
market on its own, freeing you up from charts and lights.
In addition to its speed and efficiency, Automated Stock
Trading software protects profits during market reversals. How?
It sees the reversal before other "human" traders, and
immediately goes to work locking in your profits. The automated
trader does not "panic" buy or sell. It reacts logically and in
a measured fashion to what is happening in the market. This is
quite different to the traditional stop-loss orders which are
only activated once the market has already turned which result
in you taking a loss.
Most Automated Stock Trading software packages, such as
StockPicker from Investing Systems Network or OmniTrader, have
proprietary algorithms that detect specific market conditions
so that the investor can ride a stock up beyond any
pre-specified profit goals. This "fuzzy logic" helps to prevent
you selling a stock prior to it reaching its peak. The investor
therefore maximizes profits during market advances. Finally,
unlike Community Forex Online Trading software, Automated Stock
Trading packages, have AI functionality enabling the program to
learn successful trading strategies from other traders. All you
need to is to subscribe to a trader network and offer to share
your strategy. You can then also download successful strategies
from other subscribers in your trader network.
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