4 Reasons Why You Cannot Do Without Automated Stock Trading

4 Reasons Why You Cannot Do Without Automated Stock Trading Automated stock trading has revolutionized online investing in stocks.
It has nearly done away with the need to invest a lot of time in stock trading.
Are you still in two minds about whether this can work for you? Find out what automated stock trading can do for you...
#1- Lowering The Costs - automated stock trading can help you reduce costs in commissions and help you gain access to share quotes in real time.
You also get access to instant charts and comparative prices for the last few weeks at a click.
How is this helpful? Well, information is key to good investment.
This information helps you buy cheap and sell at a profit! #2- Placing Limits on Trade -automated stock trading also helps you place limits on trade.
This is especially helpful for investors because they can specify the points where they would like to buy or sell a stock.
Investors who cannot afford to sit and monitor prices throughout the day can place a limit order that holds good till it is canceled at the end of the day.
It is less risky for investors and obviously time saving in nature.
#3- Automatic Reinvestment of Dividend- most of the discount brokers offer you a dividend reinvestment facility.
This is a system where the earnings from a particular stock are automatically invested in more of the stock.
This is especially helpful for long term investors.
#4-Stop Loss Transactions - this is especially helpful for traders who cannot devote a whole day watching stocks.
The stock market is usually volatile in nature and a stock might plummet in a matter of minutes.
A stop loss is used to prevent losses in case of a huge drop in prices.
Automated Stock Trading is not an alternative to research and disciplined planning where investment is concerned.
Even though it helps you trade in an easier manner, you still need to research the stocks before buying or selling them.
An adequate knowledge about market conditions is also essential and non negotiable.
Beyond these limitations, automated stock trading may be just the thing you need if your profit from stock trading is being limited by time constraints.