Sunday, April 7, 2013

Stock Trading Computers - Are They Always Helpful?

The technology has surpassed even these days. Can in simple media, or in more complicated business or make money transactions, the use of computers very clear in the lives of many people.
In stock trading, the increase in market transactions online has become quite common in recent years. Many institutional investors prefer to use sophisticated computer technology to help them make investment decisions. And many people argue that computers can only improve on stock selection than traditional human intermediaries.
Although computers can do a much more demanding, you may be wondering if it really better aid for trade to traditional brokers are compared. At the end of the day, remember that what is to offer technical recommendations only and ultimately, the decision is still up to you.
Among the emotions out of stock
One of the most common that most people who choose to use information technology in business who, not having a lot of emotions that people can have mediators in stock-picking deal, so computers can more objective recommendations for investors to offer.
Since most computer programs for quantitative models try to do justice to search through layers of data for the stock to be sold or compatible to use, so the lack of computers to the confusion of human emotions can be very useful. Note that with the inclusion of human emotions such as pride or greed, choosing the right investments in quantitative models can perhaps be more profitable.
No system is perfect
Although computers can be promising tools in the market, noting that no system is ever perfect. Since people are responsible for the construction of these models, in which computers are basically running in skirts are distortions in the system. And even the most sophisticated computers can not always for all variants of the market report, at least not for the moment.
A very common problem found in computer use, is that the time can, computer programs often end up the same stocks recommended on their lists. And when hundreds of these programs simultaneously analyze the company would most likely, the same recommendations as many customers. And at the end of the day, investors would still fight for actions.
When many people usually want to invest in securities, and the question is what happens in the market is that prices are on the rise, and this can be very bad for the investor.
And this is the last question if the computer really useful for doing business a lot easier for you. The answer is that it is yes and no.
Although you can certainly help your computer in many ways, giving the usual disturbing emotions humans and can also analyze the data much faster, remember that there is still a system that is still not perfect. And despite the many benefits, there are still shortcomings of which can involve the trading game with a jungle has
The stock market with its unpredictable behavior can certainly be to take a difficult pitch. And so it is recognized that, regardless of the help that you want to use, do, if the sophisticated computer equipment or broker more traditional end of the day, your decisions would still be the make or break factor in your efforts will be successful .

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