Category Archives: Trading

What is automatic trading?

Automatic trading consists of computer applications or software that issue orders for the purchase or sale of a financial asset based on parameters previously programmed and that perform advanced analysis of multiple variables that are supposed to assure them in some way to make correct or exposed decisions of lower risk in the extent to which they are not affected by the psychological part of the trader .

There are multiple automatic trading platforms. A tool that most brokers and traders use. In spite of everything a wide debate has been created around its reliability. This issue has many nuances, since most traders opt for the creation of their own program systems or the optimization of existing ones.

Trading Strategies

Trading is a system of buying and selling with a lot of risk, only suitable for the most qualified. It is not properly an investment, but rather speculation. Apparently it is very attractive and gives the option to earn large sums of money in the very short term, but also to lose it. The amount of commissions to be paid, added to the high probability of performing erroneous transactions mean that only 10% of traders earn money and few of them do so during the first months. However, when the rules of the game are well known, the performance of trading operations is usually very high, with benefits of dizzying figures.

It should be noted that to be a successful trader it is not necessary to know the market thoroughly and the rules of the game specific to trading. A curve, a simple drop or momentary rise is more than enough to generate profits, even ignoring the direction in which markets move. For this there are a number of strategies with which the risk of launching this adventure is relatively small. Combining a good trading psychology, an adequate risk management and a good strategy, success is assured.

The Psychology in Trading

A big mistake that beginners make when they start learning about trading is that they assume that by the mere fact of developing analysis skills, both technical and fundamental, they will reach success. In fact, learning to control emotions is the most important skill that allows the trader to be successful, because emotions have the greatest impact on your results.
Success in trading is not achieved through a single trading operation, but is due to a number of operations that use the same strategy. This means that the trader must be disciplined enough to stick to his strategy, even during a bad patch.
However, human beings do not always behave logically and in many cases emotions influence us and we act differently than usual. The success of a trading strategy is determined by a number of trading operations. A successful trader must stick to the rules of his strategy and not let emotions get in his way.