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Friday, 25 September 2015

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Algorithmic Trading Strategies

Algorithmic Trading Strategies - Money Classic Blog
A person who wants to trade in the stock markets can trade on variety of financial instruments. The trader can trade on Nifty Futures and also options. With the evolution of technology, new ways to trade in the stock markets are emerging. Algorithmic trading is one such way. In algorithmic trading the buy and sell calls are placed with the help of computer program. Also this type of trading has minimum involvement of emotions. This is done with the help of a computer program. Due to the automation the buy and sell trades are placed when certain rules are met. Thus there is nil involvement of Emotions and greed in this type of Trading. Also if there are abrupt and very fast movements in the stock markets, their benefit can be taken using algorithmic trading. The automated trading helps in placing very fast buy and sell signals as soon as the rules are met.

The trader can take the help of stock advisory firms which provide accurate stock market tips. These advisory firms have expert technical analysts, who do in-depth technical analysis for anticipating the market movements. Technical analysis is a field in which the price movements and levels are analyzed with the help of charts and various indicators. There are many indicators like moving averages, exponential moving averages, MACD and stochastic which help to generate various buys and sells signals. These advisory firms also give proper stop loss to trade effectively. These stop loss prevents the traders from incurring heavy loss. When the trade goes in opposite direction the stop loss gets triggered and the trader gets exited from the trade by incurring a limited loss. Also the proper levels of stop loss are important to gain good profits from the stock markets. The trader can also follow his own strategy and use it for trading. A good trading strategy improves the chances of profits in the stock markets.

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