When to Recognize You Need a Switch With Your Stock Trading Program

Though the stock market has experienced a drasticprogram is a predetermined system where an
amount of volatility over the past few months (andinvestor waits for certain signals or triggers to occur
really, years), the up and down roller coaster ride hasin the marketplace before implementing a set course
not yet completely scared off potential investors atof action. For example, an investor has $100 invested
all. Though this is a little surprising, part of the reasonin Stock A and $50 in Stock B. His trading program
is so simple that it is often being overlooked entirelyinvolves waiting until the price of Stock B has risen at
by the many "experts" that get paid a lot of moneyleast half of a point and Stock A one quarter of a
to interpret the vagaries of the stock market. Thepoint before he will ever consider selling his shares in
reason that investors are still willing to play theeither for a profit. This is the essence of a stock
market is because the very nature of the old tradingtrading program, and it is a way to mitigate emotional
paradigm is shifting toward something much betterresponses to market conditions.
and brighter.With an automated stock trading program, what little
Though the idea of a stock trading program hasof the guesswork involved is removed completely, as
been around for a very long time, the 21st century isa computer software algorithm is tasked with
bringing with it the adaptation of an ingenuouscompiling and analyzing the stock market data to
innovation - a truly automatic stock trading programdetermine what the best course of action should be
that offers investors a thorough, trend basedat the close of any given trading day. This removes
analysis of the fluctuations in the stock market eachboth human bias and human error from the equation,
and every trading day.leaving the investor to simply pull the trigger on the
But what makes an automated stock tradingadvice given by the automated program. Though this
program that much better than the old fashioned,may seem a little too odd for some investors, keep
more traditional kind?in mind that automated stock trading programs have
Well, first let us look at what a stock tradingfar outperformed human stock brokers and
program really is. In the traditional sense, a tradinginvestment managers over the past few years.