Automated Stock Training: A Beginner’s Guide

Automated stock trading may be coming in the future. Do you know how to become involved? Read more about this up and coming trend.

According to the World Federation of Exchanges database and their most recent numbers, about 60 trillion USD are traded on the global market every day. 

Do you want to get in on some of that action? Perhaps you’re already in on that action but don’t have enough time to devote to trading? 

If I told you there’s a way to trade stock automatically with AI, would you be interested? What if there was a way to make money without actually making trades of your own? Is that something you’d want to learn about?

If so, and you want to learn how to grow your bank account with automated stock trading, read on below. 

What Is Automated Stock Trading?

Since this is a beginner’s guide, let’s first discuss what automated stock trading is exactly.

Automated stock trading uses software or a program that enters and exits trades by following pre-set rules and parameters you input into the program.

Parameters that match what you have in your portfolio and what you’re trying to accomplish. By doing this, you can go on about your livelihood and spend time doing other things while money can pile up.

How Exactly Does It Work?

The best part about automated trading is that you don’t have to monitor much of anything once you set the parameters. You don’t have to spend hours scouring the market to figure out the best time to buy and sell. 

For example, you can input the parameters “Buy 10 shares of Bitcoin when its 25-day moving average rises above its 100-day average.”

After you insert your parameters, the software or algorithm will monitor the stock constantly and make a trade when it falls within what you inserted.

How Can You Benefit From Automated Trading? 

There are quite a few ways you can benefit from automated stock trading. The best part about it is that you can set it up around your schedule.

You can go on about your daily life and allow the software and settings you’ve set up to do all of the work.

Trades can happen while you’re working, at the gym, spending time with loved ones, or sleeping. Who doesn’t love that?

You can also perform multiple trades in real-time. As a result, you don’t have to worry about manually going through the process. This will help you to take advantage of fluctuations in a more efficient manner.

You can use automated trading strategies and a wide array of indicators to analyze trends and see new opportunities. Now, you’re ready for “Going Live! Automated Stock & Futures Trading“.

Another great benefit of automated trading is you reduce gut reactions or emotionally making decisions that might hurt your portfolio. The planned decisions make for more secure and even-keeled trading. 

Automated Trading Platforms

There are a few different automated trading platforms you should look into. They have some tailored nuances for different individuals, and you can decide which is best for your needs.

APIs

If you’re versed in coding algorithms, then APIs are a great fit. You can build it from the ground up, and it’s totally customized to what you need. 

Top-market technology fulfills each order and provides you with excellent execution. You’ll be able to view new and old market prices, set up watchlists, analyze people’s trading patterns, and assess market instruments.

ProRealTime

ProRealTime is advanced but easy to use. You get backtested software to make the automated trading process simple for you. 

It gives you assisted creation tools with over 100 indicators. It’s great for beginners and advanced traders. Plus, if you make four trades per month, the system is free. 

MetaTrader4

MetaTrader4 allows you to build your own expert algorithms, create indicators, and make a broad spectrum of trades. 

It’s equipped with expert advisors that follow your set parameters and make suggestions for new stock opportunities. You can set it to alert you of a new opportunity or make the trade for you automatically. 

What to Know Before You Automate?

There are some questions you should answer before you jump into the automated trading world. Questions like “Is it right for me?”

You may be thinking that the money will start to pile in right off the bat. But, this isn’t usually the case. Often, auto trading can take a bit longer to bring in money than trading manually. 

The biggest question is to know what your preferred strategy is going to be. You should take a great deal of time researching this and clearly figuring it out. 

Once you have the answer, things will fall into place. You’ll most likely take a few months with trial and error.

So, unless you’re experienced and 100% confident in your strategy, go slow and play with a small amount of money until you get things dialed in. 

Cons

We’ve discussed the “pros” or how you can benefit from automated trading strategies. Now, let’s talk about the “cons.” 

Technical Failures

The biggest issue you’ll face when you use automated stock trading apps or software is technical failures. This happens most when the trade is on a computer and not a server. 

If for some reason, you get disconnected from the network, your trade might be lost.

If you’re dealing with “theoretical trades,” there might also be some discrepancies. But, again, this is because the order entry component may not turn them into a real trade. 

Over-Optimizing

Over-optimizing can hurt you more than help. To be more specific, you might fall into the trap of excess curve-fitting. You might think you’re plan is 100% guaranteed to earn money, and it could lose money right off the bat. 

Not Monitoring at All

While you don’t have to monitor the system regularly, you need to check in to make sure there aren’t any technical failures and make sure the parameters you’re creating are working in your favor. 

As a beginner, you should monitor the system more frequently until you know that it’s running properly. Then, you can taper it off or cut the monitoring time in half. 

Plug and Play

If plug-and-play automated stock trading sounds like a great fit for you, take these great tips and get into the action. Remember to go slowly at first until you’ve got the kinks straightened out.

Check out our Finance blog for some more great money-making ideas. 

Recommended Articles

Leave a Reply

Your email address will not be published. Required fields are marked *