Reasons to Consider Using an Auto Trader For Your Trading

It's no secret that trading can be difficult. Watching a position go against you and watching your account go lower and lower Can be one of the most psychologically difficult things you can do. Trading is different from other professions in that in every other job, once you get paid, that money is yours to keep. But in trading, it's possible to lose the money this week that you made last week.

This is one of the reasons that some traders will fail based in entirely on psychological reasons rather than on technical reasons. Some systems experience drawdown (temporary loss of money), and even if the system has positive expectation, some people can not comfortably sit through drawdown and will close their positions so they do not lose any more money, and it is usually at this point that price begins to go in their favor and if they had held their position, t hey would have started making money.

Fortunately, there is a solution that takes much of the psychological stress out of trading: Auto traders.

An auto trader is a program that looks at price and uses specific rules to generate buy and sell signals. It can also be configured to trade for you automatically based on these signals, which for many people, can make things a lot easier. If you know your system is doing the work for you, you can relax.

You also do not have to worry about watching the screen 24/7 because the auto trader can take trades for you that you would otherwise miss. This can relieve some of the stress and anxiety that some traders may feel, especially the feeling of "I can not ever leave my desk because I might miss that next big trade!" Indeed, an auto trader can handle all of the potential trades for you so you can essentially let it run hands free.

Just as a safety precaution, however, consider that you might not want to let it run unobserved; While the auto trader will take the trade signals for you, you still probably want to monitor everything just to make sure the program is running correctly, to make sure you do not lose your internet connection, etc. But the auto trader can definitely take a lot of the stress of trading away from you since it handles all the buy and sell decisions.

And in the event that you want to manually override it for whatever reason, it can be easily turned off as well.



Source by Tina Dever

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