Easy money is everyone’s dream and it is no wonder that from experienced traders to fresh out-of-school individuals, everyone has got on the bandwagon of automated trading. People are the under the assumption that auto trading means you need to just set up the system and the machine will do the rest – bring in profits and stave of losses.
Here we will briefly bust few of the myths associated with automated trading.
Myth 1: Lack of Emotions
One of the marketing strategies for automated trading is to propagate the myth that since algorithms do the trading without human intervention emotions take a back seat and people are calmer and composed. This is far from the truth. Any strategy that finally goes live must have passed human eyes and analysis. Hence, if your trading concepts land you in the soup you will be emotionally distraught, won’t you?
Unlike manual trading where you are in better control and can take decisions instantly, here you have to wait for the system to react and this can be nerve-racking. Next, when you constantly look at a screen for news that would help you close a deal, your emotions are running high and you are not at peace.
This shows that it is not the method of trading but the entire experience that is stressful and full of emotions.
Myth#2– Technical expertise required
Yes, technical knowledge is a big boon and will stand you good stead in testing times but that does not mean that unless you are a programmer or know programming you should not become an automated trader. You can always hire technical help. In fact, if you browse online you can find information on any subject including setting up an automated trading.
Thus, It is not technical expertise but trading expertise that is required for you to make money using machines. The difficult part of auto trading is the invention of a system that can work with the trading rules.
Myth#3 – No need for Human intervention
Auto trading does save you time but they need constant monitoring and supervision. It is a myth that you just have to setup the code and then the machine will do the hard work and you can reap the benefits. The system can have errors in codes, might have a software bug which if not rectified at the earliest will not execute the trade as desired.
Trading systems like 1 G Profit System claim to be different from the rest of the online investment platforms. To know more how this system is different you must read up on 1 G Profit System Review review.