A lot of talk has been made of trading robots or else automated options in regular trading. The first depends on powerful computers to analyze market data and make market predictions. These predictions then might be examined by human experts or else the robot might make purchases instantly. With electronic options, a user sets a web-based trading profile to buy or sell based on simple conditions. An automated trade manager could be simple or complex, but is inseparable from modern trading.
Using a computer to trade is just like other programs. The software looks at provided data and performs math that is prescribed by the program. The program might crunch one set of data first and then decide whether to look at another set of data or to stop and turn down a trade. In the event of large corporate computers, a variety of programs are running and the machines never stop making trades even while they are monitored.
The average trader can access a variety of tools. The cheapest and least sophisticated trading platforms allow for simple stock purchases for a minimal fee but have no prediction or algorithmic tools attached. Other platforms charge a fee but offer a lot of market data and more complex triggers for buying and selling. In this case, the trading is only semi-automated. The investor makes the calculations and decides to buy at one price and sell at another.
Other software are not too demanding and can operate on a laptop computer. These software can crunch data and provide results that allow for human decision making. The most sophisticated software constantly monitors the stock market, makes calculations, effectively tries to predict if an asset is likely to rise or fall, and then makes trades based on these machine predictions.
Automation software is not perfect, and there is a reason why they are used with caution. Computers can see patterns that humans cannot, just as humans use experience and a knowledge about human nature to predict what people are likely to fancy. Since computers can see things that humans cannot see, they are essential to accessing otherwise impossible data.
The biggest reason to use an automated trade manager of any sophistication is that it can make instant trades. This beats human decision making to the punch in many cases, and there is an ongoing war for one machine to be faster at trading than another. The average person is best advised to stick to reliable stock and use a robot to get a better deal. This means buying the asset a little cheaper or else to have the option to sell even as the owner sleeps.