Algo Trading for Retail Investors: World of Opportunities

Trading Algorithms for Retail Investors: World of Opportunities

The stock market is one of the purest forms of modern commerce. Every participant, whether a trader or a corporate hedger, all are involved with one specific intention and that is to make money.

Retail trading has been an indivisible part of the market, it has been there in the market for decades. However, the concept and mechanism of trading has undergone a profound change, and the major new trend is the use of computers in stock trading. 

Usage of algo trading platform, which involves automated computer programs and software to ensure faster and more precise trading, makes it more accessible, disciplined, and reliable.

It is almost impossible for a veteran investor to keep up to the new trends.

Understanding Algorithmic Trading:

Trading algorithm accounts for around 75% of the entire global trading. It uses a defined set of instructions in the form of algorithms to generate trading signals and placing orders in an automated manner.

It’s an automated, simple and accurate way of modern trading, still Retail Traders remained deprived of algorithmic trading for a long time, making them dependent on Brokers!!

In today’s competitive world, Automatic trading strategies are having an upper hand over manual traders.

Algo Trading can be defined as the process of converting a trading strategy into computer code, which buys and sells the shares in an automated, faster and accurate way with the help of Algo trading software .

Benefits of AlgoTrading:

Speedy Execution: If you are trading a strategy which is profitable for you, you need to be able to increase the speed of execution for making the profitable trades happen quickly.

Algorithmic trading  is a way to do the same.

Disciplined and Emotion-less trading: Another reason is that traditionally retail traders have been trading on the gut feeling based on the ‘feel’ of the market. However, the gut feeling often turns out to be wrong, mostly when there is greed and fear involved. Algorithmic trading follows pre-decided entry-exit rules which prevent such emotional trading and hence avoidable losses.

Increase in market reach: It uses modelling techniques to manage risks. It further enables retail traders to trade in the options which otherwise are very volatile for retail players.

Systematic trading: Trading Algos make more accurate predictions of stock prices and thus, makes trading more systematic and advantageous.

Robo trading: Algorithms can monitor and take decisions and execute trades based on market movements. So, the need to continuously monitor the market manually during trading hours is not required.

Algo trading is the Future Trading: The concept of trading has evolved leaps and bounds in the past few years. The odds of succeeding as an individual discretionary trader are getting worse every minute. With access to mobile internet, trading apps, and various software, trading has changed its scope. Traders that use these exciting new technologies when investing increase their chances of success significantly. 

The Future Stock market is open for retail investors to excel with Trading Algos, click here to know more and understand how best we can explore the modern world of automated trading.

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