he practice of managing and overseeing the investments and funds that comprise your portfolio may seem like a simple thing. You have this collection of holdings, and they return X, Y, and Z based upon the A, B, and C data sets that you (or a broker) used to analyze and assess the quality of those investments. For decades, brokers, fund managers and investors of all types have had what are known as stock trading programs, in that they wait for a set of predetermined market conditions, signals or triggers to materialize before they take action and either buy or sell.
With the inception of automated stock trading programs, this basic fundamental system is set to take off into an incredibly promising world of untold performance growth potential. There are a couple of reasons why automated stock trading programs are far superior to the human variety.
An Even And Consistent Analysis
One of the strengths of an automated stock trading program is that it offers a consistent and even analysis of every possible market condition, removing the possibility of human error from the equation. There will never be a case with an automated stock trading program where a computer analysis simply failed to account for a given variable, while a human counterpart may have had a lapse in judgment, or simply forgot to account for it.
Broad And Complex Data Compilation
An automated program can also make quick work of analyzing all of the data in all of the world’s stock exchange and commodities markets each and every day. What an automated stock trading program can do in matter of a few short minutes (or hours) would take a human broker or manager days (or weeks) to accomplish with any success.
No Biases Or Prejudices Based Upon Past Failures
One of the most beneficial aspects of an automated stock trading program is its ability to remove and discount the normal and engrained biases and prejudices that are endemic to a human stock broker or fund manager. A computer program will never feel slighted if it gets a call wrong on wheat commodities or a currency devaluation, whereas a human broker will internalize such a failure and likely hold a grudge against that particular aspect of the market for the rest of his career. It can be exceedingly difficult, if not impossible for a human broker to overcome this.
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