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With algo trading around, is there any significance in doing manual trading. Attended one algo trading webinar today and feel demoralised. What would the financial markets be like when all the trading is done by machine learning algorithms? We can also achive this in Trading Using Algorithms. Already there are some company in Market doing this same work. The first point is that the market does not differentiate between traders. All have equal chance of making money or losing it.
In other trading fields, Individual traders have been competing against Big traders for decades now and have achieved success. They are into retailing business.
This model is akin to High frequency trading india quora Frequency Trading in the stock market where high volumes are traded for lower margins repeatedly. Now compare it to this small neighborhood grocery store. They know their customers, are located near to them and occasionally sell on credit. People do not go to big stores for buying bread and eggs on daily basis. That is where such stores have advantage. An individual trader does not need huge volumes.
We may be reading the stories of success of ALGO trading or HFT, best paper trading qatar believe me, they earn a similar profits or loss as an individual trader.
An individual trader has himself to blame in the event of a loss, an algo trader blames the algorithm. They just hide behind the excuse that algorithm did not provide for this or that eventuality is now being tweaked. Like travelling to a destination by driving a car.
Trading is about the high frequency trading india quora. There is no need to worry about the competitors because they are actually not competing.
They high frequency trading india quora just fellow travelers with bigger car. Algo Trading vs Manual Trading General. What were the key points said in the webinar?
This was a question posted on Quora recently which was answered by Karthik. They spoke about ML machine learning etc… everything went over me. How can an individual compete against present day trading by Algos and HFT? We are talking about trading. Trading in stock market is like trading in any other thing. You make profit when you sell something at a higher price than what you bought it for. It does not matter whether it is a stock in a company or just potatoes and onions.
Big traders need big volumes for their trades to go through. Individual trader can be a part of the same market without getting noticed. The example can be seen from the Retail Trade.
MORE and many others in India. This is a neatly stocked D-Mart store. High frequency trading india quora needs a huge number of footfalls and high volumes of sale to make any kind high frequency trading india quora profits. Such stores are also doing business and making money regularly. They have their own advantages.
Such establishments are similar to Individual Trader in the stock market. They operate in low volumes but still profitably. The second point is that there is no need to compete. Both can be profitable without competing with each other. And both can be losing money. The risks and rewards of the markets are same for every kind of trader. An individual trader does not have that luxury. It is better to own up the failure and look up for the next trade set up.
It works only in high volumes. Individual Trader can participate in both high volume as well as low volume trades. Risk and reward and trade management are similar. Let us remain focused. Our aim in trading is to earn profits through careful trading. It can be done in any manner. Any car will take you there. The big one is HFT. The smaller one is the Individual Trader.
Both can co exist. Can u please high frequency trading india quora the link to the webinar.