A Robot Can’t Day Trade For You

A Robot Can’t Day Trade For You

Posted on 10. Nov, 2010 by in Forex

If you are looking to start day trading, you should be prepared to spend a lot of time sitting in front of a computer.  Day trading involves spending your day buying stocks, or selling them short, in order to profit.  You will trade pretty frequently throughout the day, and you must watch the markets at all times, from open to close.  In addition, you’ll be spending time in the morning preparing for the day, and time at night going over your trades.  Of course, before you even begin, you’re going to have to learn the big secret of day trading.

Day trading isn’t just about analyzing data, or technical analysis, and this is one of the big secrets of trading.  If you’ve heard of day trading, it’s likely because someone has tried to sell you a forex robot, or stock trading robot.  These “robots” are essentially programs that tap into data and can make reasonable assumptions based on the data using the parameters its program has plugged into it.  It’s missing a key ingredient to successfully become a day trader.

Including fundamentals in your analysis is crucial to succeeding in trading.  Ignoring important news events that might affect your stock could prove detrimental to your trading account.  As you might imagine, no robot can read and interpret the news.  The thing is, these events can have catastrophic effect on the typical technical patterns used to trade the markets.   They cause the market to move erratically.   This could be in your favor, or it can erase your account in a second.  It’s important to be aware of these events and either use them to your advantage, or avoid being in the market while they’re occurring.

Using an effective combination of technical and fundamental analysis will keep you in the trading game a lot longer than most. It will certainly beat some robot, hands down, any day.

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