Thursday, March 24, 2011

Computer Trader on the Loose

A computer can successfully trade the market? Answer is a resounding yes. Start a computer has an unfair advantage. It does not trade on emotion. Appropriate algorithm according to the trades to take a set of rules, you may come across will maintain a poker face harsh view.

Points of websites out there who promise miracles but in terms of accountability are fraudulent. "Show me your trade log and I will believe you" maybe you're thinking.

Also, always out of hundreds of unhappy results can take a set of successful trades. A handful of results in isolation in your home to develop the system does not warrant.

About the basics? Computers can ignore them completely. As the saying goes: "Everything you need to know is already factored into prices!"

So the best technical analysis tools are suitable for a computerized system? The answer is that any device in the business, such as low liquidity and unexpected hurdles will have to leave. So our preference index, foreign exchange and commodities will be. Of course blue-chip stocks that fall into the category as some large cap and behave like an index of their own.

To a computer still will not trust your money? Well here's feelings come back. Today most people have changed a navigation device for your street directory. If you rely on your driving directions to a computerized gadget what's your point?

This probably is the issue of discipline and fear. The only reason you are being rewarded for market trading for you is because of the risk appetite. If you had the stamina to hold on for the long haul and not back out of appropriate goals you had before the reform.

Such a business to treat the disease a long time frame to step back. What are you looking at daily charts? How things look like on a weekly or monthly chart look. Then chart your daily and an entry point to come back to hunt.

But be careful. Markets are in the habit of reviewing your entry points if the support level several times (or resistance if you are short) need to check. So if you stand on your two feet are firm, but a stop-loss orders off a (small) will be struck off the get together. Adding insult to injury the market now will fly away without you finally reach the goal.