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Traditional Trading Vs Automated Stock Trading

by Randal Desailly (2020-02-09)

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Probably the biggest question in the world of stock marketing is, "How does automated stock trading differ from traditional trading?" Now this is a question that is capable of generating many reasons from various perspectives, but eventually people take a stand in favour of automated trading due to the considerable advantages that are provided by it.
Automated Trading is Way Faster than Traditional Approaches Traditional Trading Vs Automated Stock Trading

Automated trading is characterized by two key elements which include faster responses to market conditions and the ability to process / analyse data faster. This can never be matched by traditional trading approaches as manual analysis would take a lot of time.
Moreover, with automated trading systems, the orders can be placed at the online brokerage or with the exchange in seconds as compared to the traditional order placement method (this takes up a lot of time). Automated Trading Provides Greater Convenience and Independence The problem with the traditional approach to trading was that the traders were required to constantly monitor the market even during non-operational hours so that they could be aware about any possible news that could have an impact on the valuation of the stocks.

If you are into day trading, then the traditional approach would have exhausted you terribly. But with automated systems, you only need to provide your strategy and the system will monitor and market and even trade for you. You can have complete peace of mind and be absolutely free of worries about your investments.
As long as your strategy is correctly configured, you won't have to worry about anything. Minimal Risks are Applicable for Automated Stock Trading What is the biggest concern for traders when they make a move in the stock market? Emotional decisions. This is the single most prevalent reason behind the incurrence of loss in any trade.

Loss due to emotional decisions may also be attributed to the lack of adherence to the action plan. Both of these conditions cause loss for the trader. This is the thing that makes traditional trading rather risky. However, automated trading systems work strictly on your strategy and a move is only made when the market conditions appear to be perfect as per your trading rules.

So there is absolutely no chance for a loss situation here. Moreover, 주식 상품 the system also eliminates emotions completely from the equation so your trades have a greater chances for success. Automated Stock Trading is Cheaper Automated trading systems make use of online brokerages where the rates are pretty cheap (as much as $5 per trade) so traders can save up on commissions.
Moreover, the absence of physical brokers reduces lag in the order placement process. As compared to these systems, the traditional approach is way more expensive and the fee may not be justified in certain cases as the outcome of the investments may turn out to be too low.

The Verdict Automated trading software have an upper hand any day and in this age of digital communications, it is important to get accustomed to the new trend in stock trading. Almost everyone has started using these systems. Those who are not using them currently are definitely pondering over the possibility of their usage.
No matter how much effort you may put in, you would never be able to keep up with the speed and accuracy of automated systems by using the traditional approach. Automated Trading Software have an upper hand any day and in this age of digital communications, it is important to get accustomed to the new trend in stock trading.

Almost everyone has started using these systems. Those who are not using them currently are definitely pondering over the possibility of their usage.

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