Auto trading: A guide for beginners in 2021
Financial markets are very complex and it is not easy to control them – especially without dedicating the time and regular effort to them. In recent years, along with changing markets and technological breakthroughs, advanced and intelligent trading systems have emerged. This is how automatic trading developed, which is gaining in popularity.
If you want to be involved in the cryptocurrency trading business process and want to have passive income, then making bot software for trading is an obligation. Trading robot software is a program designed to open or close positions in trades automatically. The software can be arranged based on criteria set by the user. From day to day, the use of robot software for cryptocurrency trading is increasing, this is driven by the fact that many software is proven to generate fairly consistent profits. For example, most of the people who trade with trading bots have made consistent profits.
The advantage of using robot trading software is:
- The process of opening a buy/sell order can be determined based on the criteria that you have created
- You can set the percentage of profit as you wish
- The percentage of loss can be set according to your risk plan
- You do not need to monitor the price of assets that you have for 24 hours
- Your trading process is not affected by emotions, which becomes a weakness in the trading process you are running
In this article, we will introduce you to this type of trading in detail. We will show you how to auto trade and what are the best free auto trading robots and best stocks for doing it, read the NIO stock forecast 2025. Finally, we will tell you about the importance and the risks of automatic trading.
How to do automatic trading?
Long before we introduce you to automatic trading, we will introduce you to the procedure for doing automatic trading.
– Choose a broker to auto trade
– Open a trading account
– Deposit funds
– Configure the platform
– Let the robot trade for you
– Let us now focus on the steps to follow to start automatic trading with a platform.
Start automatic trading
Auto trading has become so much of a strategy used by traders that we have chosen to walk you through how to auto trade before going into the other details. Follow these steps well and you will know how to auto trade.
Step 1: Choose a broker to auto trade
Just like traditional trading, in order to auto trade, you must first and foremost choose an online broker. You need to make sure that this broker can offer auto-trading functionality. Because not all brokers offer automatic trading services. You must also ask yourself the right questions before choosing a broker for automatic trading. For example, ask yourself: Is the broker regulated? Does it allow you to automatically trade the assets of your choice? Does the broker offer a demo account for training? Does it have responsive customer service?
Step 2: Open an account
To open a trading account, you need to download the software or go to its site. You need to download the app or go to the site to complete the registration process. You will enter your name, an email and your password, and your phone number.
Step 3: Deposit funds
Once you have created your account you will need money to make the minimum deposit. This can be done by wire transfer, or by debiting the chosen amount from your credit or debit card. The deposit is your trading capital, which will be used to fund your trading transactions on the automatic platform.
Step 4: Configure the automatic trading platform
Before carrying out the transactions, you must configure the trading parameters. These include, among others:
The currency you want to trade-in
The amount of your investment
Your take profit
Your stop loss
Maximum daily trades
These parameters will dictate how your investments will be conducted in automatic trading.
Step 5: Let the robot trade for you
After setting these parameters, you can let the robot trade for you. Note that you can change the settings at any time you want.
Interested? Give it a try!
Information is given by https://blockwatch.app/.