Automatic Trading Systems — Making You Money!
Have you ever heard of the stock trading robot? His name is Jeff and he was developed by two computer wizards, Michael and Carl. Jeff differs from other automated systems by the way in which it analyzes stocks. I, like most of you, started out knowing little about trading stocks. Like many of you I was a novice to trading systems; however I now know that with a solid knowledge of the market and a tool like the stock trading robot the market can be powerful money making tool.
Who is Jeff?
Jeff is an analyzer of penny stocks. It analyzes a stock’s trading patterns and looks for patterns using mathematical algorithms. Example: company ABC for a 7 day period of time traded at either +/- $0.50 of it’s beginning week value. Jeff breaks down the trading record and determines at which points the stock peaked, and the points where it’s value declined. By doing this it is able to tell you a time to buy or sell the security.
Okay! Excellent! Sign me up for my million! If this is what your thinking I want to explain a bit more. Don’t get me wrong. I am all for making money, but make it with an educated decision. Jeff can be a very helpful tool. I t has the greatest potential risk, and also the greatest potential for return. For your investment strategies I highly recommend that you utilize tools like Jeff along with knowledge and all other tools that may be available to you. You must, as an investor exercise both prudent financial judgment and common sense when dealing with such tools.
This having been said, the top traders are like robots, executing trades without emotion. They develop a systematic approach to trading which helps then attain consistent returns while limiting their risks. So, what is stopping you from becoming one of the top traders? Nothing! What is stopping you from using your own automated trading system? Nothing! Here are some advantages and disadvantages to help you decide if an automated trading is right for you.
How Are Automated Trading Systems Created?
Automated trading systems are created by converting your trading systems’ rules into code that your computer can understand. Your computer then runs those rules through you trading software, which looks for trades that adhere to your rules. Finally, the trades are automatically placed with your broker.
Your Computer — — — Your Rules — — — -Trading Software — — — -Broker (placed automatically)
There are two types of trading programs semi-automatic and fully automatic. Fully automatic systems will automatically generate and place trades for you with your broker. Some fully automated systems require that you use specific brokerage firms that support fully automated features and require the completion of an authorization form. A semi-automatic system will find trades that fit your criteria, but require you to place your orders with your broker yourself.
Fully Automated Systems
1. An automated system takes the emotion and busy-work out of trading, which allows you to focus on improving your strategy and money management rules.
2. Once a profitable system is developed, it requires no work until market conditions demand change.
1. Improper coding can cause large losses to occur quickly.
2. Certain codes are impossible to put into code. This makes system development difficult.
The most important thing here whether you use trading tools like Jeff or not is to research your options and make educated decisions.
I am Shannon Curtin and I, like many of you started out not knowing a thing about trading stocks. Through research and educated decisions I have manage run a quite successful business. On this website http://pennystocksystem.co I would like to share these tips, strategies, articles, videos and more with you for FREE in my e-zine “Forex Trader Plus!”