| The practice of managing and overseeing the | | | | trading program where a computer analysis simply |
| investments and funds that comprise your portfolio | | | | failed to account for a given variable, while a human |
| may seem like a simple thing. You have this collection | | | | counterpart may have had a lapse in judgment, or |
| of holdings, and they return X, Y, and Z based upon | | | | simply forgot to account for it. |
| the A, B, and C data sets that you (or a broker) | | | | Broad And Complex Data Compilation |
| used to analyze and assess the quality of those | | | | An automated program can also make quick work of |
| investments. For decades, brokers, fund managers | | | | analyzing all of the data in all of the world's stock |
| and investors of all types have had what are known | | | | exchange and commodities markets each and every |
| as stock trading programs, in that they wait for a | | | | day. What an automated stock trading program can |
| set of predetermined market conditions, signals or | | | | do in matter of a few short minutes (or hours) would |
| triggers to materialize before they take action and | | | | take a human broker or manager days (or weeks) to |
| either buy or sell. | | | | accomplish with any success. |
| With the inception of automated stock trading | | | | No Biases Or Prejudices Based Upon Past Failures |
| programs, this basic fundamental system is set to | | | | One of the most beneficial aspects of an automated |
| take off into an incredibly promising world of untold | | | | stock trading program is its ability to remove and |
| performance growth potential. There are a couple of | | | | discount the normal and engrained biases and |
| reasons why automated stock trading programs are | | | | prejudices that are endemic to a human stock broker |
| far superior to the human variety. | | | | or fund manager. A computer program will never feel |
| An Even And Consistent Analysis | | | | slighted if it gets a call wrong on wheat commodities |
| One of the strengths of an automated stock trading | | | | or a currency devaluation, whereas a human broker |
| program is that it offers a consistent and even | | | | will internalize such a failure and likely hold a grudge |
| analysis of every possible market condition, removing | | | | against that particular aspect of the market for the |
| the possibility of human error from the equation. | | | | rest of his career. It can be exceedingly difficult, if |
| There will never be a case with an automated stock | | | | not impossible for a human broker to overcome this. |