What Is Automatic Trading
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How Automatic Trading Works
Automatic trading allows users who want to invest in the stock market to immerse themselves in the financial markets through a special program. It is a trading robot that executes set rules to complete trades. When an investor wants to embark on the adventure of trading, he must conduct an in-depth technical analysis and define the positions’ parameters: opening order, trailing stops, guaranteed stops, etc.
Once these parameters are entered, the trading robot acts accordingly. Automated trading offers the prospect of opening many positions in a relatively short period. The robot frees operations from any emotional aspect that could pollute decision-making. The position rules are pre-established in the robot’s parameters, and the algorithms it deploys operate the decisions.
The Advantages Of A Trading Robot
The use of a trading robot offers several indisputable advantages. First, it allows you to free up time on your schedule. The robot executes orders both day and night. In trading, emotional data occupies a central stake. Emotions can lead to making bad choices. They can make you make a bad decision that will lead you to lose money or miss the opportunity to earn it. The robot reduces the emotional impact with its pre-populated strategy settings.
By rotating daily and weekly, the robot identifies new opportunities in line with your investment strategy. It still analyzes trends according to many indicators you wouldn’t have time to review. Finally, the robot executes several orders simultaneously. The elimination of manual execution offers the user several operations performed much faster. Where humans can only perform one task at a time, robots perform several simultaneously.
Assets Available With A Trading Robot
Several assets can be traded with a trading robot. Of course, it is possible to “trade” shares of companies worldwide for all sectors of activity. This is conditional on your broker’s offers. Other assets can be explored:
- Currencies choice between major currency pairs, minor currency pairs and exotic currency pairs.
- Indices the possibility of trading with indices such as the CAC 40, the Dow Jones, the Nasdaq, the Nikkei 225, etc.
- Raw materials include wheat, oil, coffee, cocoa, gold, etc.
- Cryptocurrencies are among the most popular investments today.
Trading robots offer efficient solutions to support you in your stock market operations. They save time and increase efficiency.
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