A large number of investors use stock trading software to control their emotions and to enable them to focus on their stock trading strategy while avoiding the effects of fear and greed.
Before using trading software it is important to have enough experience on investing in the stock market. The next step is designing your trading system and then defining your rules for software. It scans to find what stock is match to your rules and makes sell or buy signals.
After software makes trading signals, brokers execute orders. Placing orders can be done by software or manually, it depends how you’ve programmed the software.
Using Trading system and trading software will dramatically increase your chances to succeed in trading, because it eliminates:
- Lack of a Trading Plan
- Lack of Discipline to Follow the Plan
- Failure to Control Emotions
- Failure to Accept and Limit Losses
#1: Having a trading plan
Having a trading system means having a pre-defined set of rules you have developed to guide your trading. Therefore you HAVE a trading plan, eliminating the No.1 cause for failure.
#2: Following the trading plan
The easiest way to follow a trading plan is to automate it with software. Almost every trading system can be automated, and you could let the software trade for you. You won’t have to worry about your discipline any longer, as the computer mechanically trades every setup for you.
#3: Controlling emotions
Trading with a system removes emotions from trading. If you don’t have a strategy and you try to make decisions when the market is moving, you are liable to become emotionally attached to positions. You may experience panic and indecision when the market does not move in your favor, as you do not have a prepared response. That’s when most traders lose their money. If you follow a system you will know what to do no matter what the market does.
#4: Controlling your losses
you probably have heard the saying “Let your profits run”. Unfortunately most traders let their losses run. Trading software will get you out of a position when the predefined stop is hit. Unless you override the system to “give the trade a little bit more room” it will stop the loss and therefore limit your losses.
Without any guarantee, your chances of making money rise incredibly when starting with a profitable trading system and software.