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The Past, Present, and Future of Automatic Trading

Stock Trading Apps

Do you know that trading systems existed from as early as 1531? It was in Belgium, and how far have we come with it now? Stats say that up to 60 stock exchanges total $69 trillion in value. Modernization has led us to use our smartphones to buy and sell the stocks for which we have been using paper as proof for so many years. 

There are tons of apps you can use. But one always likes to choose from the best stock trading apps like AvaTrade, MetaTrader4 and others with simple and interesting user interfaces. 

The concept of automatic trading exists because so many people have started trading in recent years. Stock trading is at its highest popularity. As Gen Z has started losing its ability to delay gratification, the need for automatic trading is at par with the popularity of trading itself.

Two methods are widely accepted by many traders worldwide, and there’s no doubt why both methods work so well on large standards. So, which are these two methods?

The Top Two Trading Methods

There are always two groups of people: one trading group loves technology and trusts it with its heart, while the other loves the human touch. The latter puts faith into a decision when the information is solidified by someone it gets influenced by.

Technology enthusiasts love trading robots, while people who like human touch follow social media influencers and TV analysts who talk about trading, provide tips and tricks and sometimes handle their portfolios for them. So let’s understand how both these methods work.

1) The Trading Robots

The world has come a long way. Industrial, home, and offices have seen a lot of automation. Trading automation is on the rise and is here to stay. Subjective emotions must be kept far from objective trading tactics, and trading robots are a big help. 

Suppose you have invested in a foreign country and are deep asleep when the trading sessions start there. Thus, you sleep worry-free when you let the trade robots do your work. This is why so many people love the idea of trading robots. 

You may summarize, understand and attempt to remember everything you have read, seen, and heard about trading, but once you put the trends and logic into a trading robot, it doesn’t forget or miscalculate the outcome. This is the second major reason many fall in love with the idea of automation.

Yet, there is always a threat. You may get as many services and luxuries with the robots, but once you get scammed, you would lose all faith in technology. So always take great care in choosing the right trading robots for you.

2) Social Traders

Many traders trust social traders since their experience provides deep insights, which helps them learn at a faster pace. The need for speed is mandatory in a world that moves so fast. 

Social traders are experienced and help amateur traders learn better. This shortens the path of earning since individuals can start earning while they learn from these geniuses. There are chatrooms that talk about trading, the groups where people share how much they earned from their portfolio. 

Once there was a time when people thought of it as something boring, and people invested money when they had that extra money. Today, people have included trading in their habitual lifestyle. This is the exact reason why the features that help with better interaction are built for the users. Such features allow users to:

  • view portfolios of various successful traders and investors
  • chat with people you think can help you
  • raise a query in a group

Everything has a good and bad side. But we can always understand and adjust our ways to benefit from it. So let’s see what is so good and what is ‘Oh, not so good!’ about the automated trading system.

Also Read: Finance Trends

Pros of Automated Trading System

The automated trading system provides massive benefits that can even make an under-knowledged person fall in love with the idea of trading. Although, if you want to use automated trading platforms, these are the benefits you will cherish:

  • faster trade executions
  • takes emotions and stress out of the picture
  • low transaction commissions
  • doesn’t deviate from the goal since there are no emotions involved

Cons of Automated Trading System

As stated earlier, there are always some drawbacks. Compare these points with the positives of automated trading to make a proactive choice:

  • The curves don’t always follow the trends; the algorithms may fail
  • Over-optimizing can result in no or little results
  • Lack of control over decision
  • The success ratio of robots might not always be great

So what does the future look like with these trading platforms? Let’s peek a little, shall we?

Future of Automated Trading

Automation might be the future, but it requires a lot of inventive and patient approaches. When the knowledge available to us as humans blends in with the speed and the algorithms of computers, the rise of automation looks fit to help the world fulfill its wishes to an extent. 

We’re likely to see traders adopting automated trading in the future, but its speed will depend the most on the success of the current automated trading platforms we have at our disposal.

Last Words

There are always questions about how effective automated trading is and how much one can benefit from it. But one thing to be considered is that the future is automated; somewhere, someone is trying to do their best to give a better future to the trading population.

If you’re looking for effective trading apps, you can go to AppsHive – a great app marketplace with over 3500 profession-based apps.

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Oliver James is a UK-based professional blogger, content writer, and content marketer who writes about travel and tourism, finance, real estate, and other topics on his blog. Passionate about writing, traveling, and getting the best deal on everything he buys, Oliver also writes for customers and helps them publicize their products, and services in the US and UK markets. He is a traveler who has visited over 35 countries and loves his job because it gives him the opportunity to find stories, experiences, and places which he can share with his readers. Oliver James is a professional blogger, content marketer, traveler, and electronics enthusiast. He started blogging in 2016 and has become a contributing writer for several blogs, including Android Authority and Elecpros. Oliver has also published his own informational books with Kindle Direct Publishing on subjects like Flappy Bird and Google Cardboard.