What is automated trading and how does it work?
It is possible today to use robots for automatic trading. If you have limited knowledge of the market or if you lack time to follow the markets closely, these robots can help you invest in the stock market.
But beware, however, of the many scams that hide behind the many offers available. Avoid those who promise you “100% free trading that will change your life forever”. Here are some tips for getting started.
Choose an auto trading service adapted to your investor profile.
Auto trading consists in entrusting a robot with its trading operations. A trading robot is a software or algorithm that allows you to buy or sell orders on a specific financial asset (mainly cryptocurrency and Forex trading).
It also analyzes market trends in real-time. These robots are therefore able to make decisions for you. They are aimed more at novice investors but are also used by professionals who use them to facilitate their manual trading.
When it comes to the foreign currency market, you choose the different currency pairs you want to trade, and the robot will trade the different pairs and analyze Forex market trends.
And when it comes to automated crypto trading, you select the currency on which to trade, and the robot operates on exchanges relating to this crypto-currency. The bot then places buy or sell orders based on meticulous cryptocurrency market analysis.
You can access automatic trading if you are a beginner or an experienced trader. To tell the truth, the use of this trading strategy does not require any training in the matter. If you have another activity and are interested in trading, you can opt for auto trade. Thus, the automatic trading robot will do all the work for you while you do your other business. Just set up the trading bot, and you’re done. You will only return for a routine check-up and to verify the results.
However, just like when choosing the crypto broker, the good choice of trading bot comes with precaution. Before opting for one software, read reviews such as Biticodes review to collect as much as possible info regarding the platform.
Doing auto trading does not exempt you from training in trading!
Any trader, beginner, intermediate, or expert, can practice automatic trading. Beginner traders must nevertheless ensure that they understand how the markets work and precisely the asset they wish to trade automatically and that they master the configuration of automatic trading features or programs.
The two main advantages of robots are: their ability to analyze all the market data very quickly and, therefore, to make more informed decisions than a neophyte investor. Their execution speed also allows them to be much more responsive than a human trader.
But, if these robots are undoubtedly the easiest way to start trading without advanced knowledge in the stock, Forex, or crypto market, they are not the most efficient. In the long term, it is often more effective to go through experienced brokers or become an expert to better control the risks inherent in financial market investments and optimize returns.