List Headline Image
Updated by Johnson Walter on Nov 08, 2019
1 items   1 followers   0 votes   15 views

4 Common Myths about Automated Trading

If you have realistic myths about your auto trading systems and ignore the myths, then you may surely make large profits.


Auto Trading

Auto Trading

Automated trading is mired with many myths. It often leads people to many myths which drive them to believe that they can beat the market easily without making much effort. All that may be needed is a trading strategy, then sit down and wait for profits.

1. It isn’t Emotional

A typical advantage is that trading is done by the software so you can’t be emotional like manual traders. What you have put in a position today and you can be pretty emotional about it later on. You may be so much driven that you get very emotional about it. Emotional state may be easily tapped into when you have open profits. Many occasions can lead a trader into emotional state regardless of the fact that computers do all the trading.

2. You may set it and forget it

Another thing that people assume that all you have to do is to install trading strategy and then you may are free, and profits will accumulate on own. It is true that auto-systems save you a lot of time, but they need your supervision. While things have been automated but you should monitor all the trades for errors. There may be some trades that may not get executed properly, so you’ll have to solve the problem with the application if needed. A mechanical trader has to monitor the system on a regular basis regularly. It depends a lot on strategy so you might save some time but you have to monitor the systems regularly.

3. There are lots of technicalities involved

Then there is a myth that you need to be a programmer to become an automated trader. You might have heard it earlier as well; if you have got the idea of the trading system, there is no programming that needs to be done. Also if you want to set your trading platform, technical stuff is not hard all it needs is simple capabilities. These days you may easily find much-needed information about setting your system on the Internet.

4. You Will Get Rich Quickly

If you think that you will get rich within minutes once you go for the automated trading system. It may not be true had it been everyone would have gone rich.