Although some would argue that trading is a game involving a lot of luck, experienced traders will tell you that it’s a game of skill, patience, and being able to control your emotions.
Even then, those traders would more than likely also agree to the fact that using technology and software to help us become more efficient and accurate with our craft, giving us that extra edge, would be a wise decision when applicable.
This is where auto trading comes into the picture. Auto trading is a method of trading that has been streamlined over recent years using underlying algorithms and technical inputs to place trades at lighting fast speeds.
Auto trading with this specific type of platform is referred to as an auto trading bot. Here are some benefits of auto trading and more particularly, auto trading bots.
Trade With Speed
When it comes down to it, trading with speed is not just about how fast you can execute a trade. It’s much more than that; it’s being able to analyze data, trends, multiple possible scenarios, and outcomes all at once.
While this is an achievable task for many pro traders, auto trading bots can help alleviate and automate this portion of the workload allowing traders to leverage their attention and efforts.
These tools can analyze, compare, and execute on 100’s of different data points, commands, and information inputs simultaneously, much faster and more efficiently than any one human could.
Speed in these areas of trading is exceptionally important to those trading across shorter time frames such as day traders.
Multi-Tasking
Auto trading bots act as a 2nd pair of hands, an assistant in a way. They enable a trader to efficiently multi-task.
As stated in the previous section, this ultimately helps them to trade faster, but the amount of pressure it takes off the trader is immeasurable. It not only saves them time, but it also helps them maximize it by allowing them to focus on other tasks that can further help increase their chances of success.
Although the trading process is automated, it doesn’t necessarily mean that it’s completely hands-off and self-reliant forever. Depending on what type of auto trading bot or trading strategy you’re using, such as day trading, you may need to be more active whether that’s staying up on the news, an event, or studying different coins.
Learning
Learning is something that is (or should be) an ongoing event in one’s trading journey, and with auto trading, you can do just that, and even better, do it while you potentially profit.
Some platforms provide trade signals or callouts of ideal trade setups that the creator of the signals themselves believe will result in trade profits.
When you take those signals and automate them through auto-trading bots, the trader doing the “copying trading” can essentially watch, study and learn from the bot and the underlying strategy the original trader has implemented.
Many different strategies are automated, some more complex than others, and vice versa – this makes auto trading bots appealing to traders of all backgrounds and experience levels.
For instance, a dollar cost average (DCA) trading bot may be the perfect first bot (and strategy) for a beginner trader to study and learn from. The DCA investment strategy is perhaps one of the most well-known in the industry and provides a solid foundation for understanding trading and investments for beginners.
Diversification
Along with speed, time, and knowledge, using tools such as auto trading bots helps provide your trading style and portfolio with diversification.
It’s common to find traders using various trading bots and strategies at the same time across many bots. This also allows the trader to effectively act on numerous possible outcome scenarios as well as add balance to their trading strategies.
An example may be a trader who is scalping, or day trading using shorter time frames to enter and exit a position as soon as possible. On the other hand, the same trader could have a DCA bot live and running. One that perhaps gradually buys on the way down, and sells in lots on the way up once it’s in profit.
Don’t be Intimidated
Most tend to shy away from such opportunities for fear that the possible learning curve may be too much for them to handle.
Just a couple of years ago and such a perspective was probably right, however, auto trading bots have come a long way in their development and are currently enjoyed by traders of all skill levels.
All the benefits discussed above were just the tip of the iceberg when it comes to the value these tools provide – and remember, there’s no better time to start learning than now!
