trading automatic is a mode that allows you to carry out trading operations in automatic mode. In this mode, the trader does not have to carry out the operations manually, but the system will work for him.
This method of trading allows you to carry out operations by applying trading signals directly on the platform you are using.
Automated trading allows the investor to set standard purchase and sale parameters, which are then applied by the software in an automated manner.
Once the investor has set the parameters, the platform will independently find the assets to invest in.
The automatic trading system is very simple to use and is structured as follows:
- the trader sets the trade he wants to implement;
- the system automatically generates the orders, also setting the stop losses and the objectives to have;
- the investor will then have to wait for the closure of the position and collect the earnings.
The earnings that can be obtained from automatic trading is considered by many investors, especially the less experienced ones, as a good way to generate profits. However, there are risks with automatic trading that should not be underestimated.
The robot that will operate in the trader’s place is not possible to know if he will act adequately before entrusting him with the positions.
Furthermore, for automatic trading, brokers require higher commissions, compared to those that apply for manual trading. Furthermore, when you operate automatically, you can lose signals that only the trader can recognize as sources of income.
The trading automatic therefore, if on the one hand it allows you to trade even when you don’t have much time, it can however lead to losing sources of income.
It will therefore be possible to eliminate all the emotional factors, which can lead to incorrect strategies, but there will also be the risk of opening failing positions due to incorrect signals.
Before setting up automatic trading, therefore, you must carefully consider the pros and cons of the question and decide how much you are willing to risk.
We therefore advise you to deepen the topic and read Automatic trading: pros and cons. What are the disadvantages?.
