Are Automated Trades Better?

Automated trading allows a trader to set trade entry, exit and stop loss triggers and execute trades without the need of dedicating full time. Through automated trades, a trader could successfully remove emotions out of the task as trades will execute when certain criteria are met. But is this the correct way? Definitely not, given the nature of the stock market that changes every single day. It is likely that the market starts behaving in an opposite direction than what presumed leading to losses. Moreover, automated trading comes along with set of disadvantages. Sometimes computer systems, softwares or programs could run into errors and the set trade could fail to execute. Additionally, automated trading does not rule out the need of monitoring. Connectivity issues, power cuts or computer crashes need time-to-time attention. In short, despite several appealing factors, automated trades are not best alternative to personally executed trades.

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