Stock market trading, emini trading and Forex day trading, have been taken over by robots!
It’s estimated that more than half of stock market trading is performed by automated computer programs – algorithmic trading that executes orders automatically without human intervention.
The most infamous type of automated trading to come under recent scrutiny is “high frequency trading” in which computers calculate small inefficiencies in the stock market and attempt to take advantage of them quickly before they disappear – often for only a few seconds.
Are the robots taking over the world? After all, money makes the world go ’round, right? … oh, wait, no, that’s supposed to be love!
But I digress.
Hedge funds, pension plans, mutual funds, and large financial institutions are using computer programs to make decisions about when to enter and exit the stock, Forex and futures markets, and also to execute those trades automatically.
The fact that so many of the “big money” players are using automated trading indicates that there may be some validity to it for successful Forex, emini and stock market trading.
On the other hand, there are myriads of trading “robots” offered to retail traders, and most of them see to only disappoint.
- Are computers better traders than humans?
- Can the market really be reduced to a mathematical formula?
- Will a highly skilled professional trader always be able to out-perform a robot in the markets?
- Is the dominance of computer trading a good thing for the world financial markets?
Let’s see what you think!
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