| How Automated Stock Trading evolved from | | | | absolutely no focus on the company itself. Instead |
| Community Forex Online Trading | | | | the investor analyses the movement of the stock |
| Perhaps the most important attribute of the canny | | | | price over a period of time. The theory is that |
| investor is a sense of timing - knowing when to | | | | everything is factored into the price, and the |
| purchase the stocks and when to sell them. We all | | | | stock price alone will predict the Buy and Sell signals. |
| know the old saying Buy Low and Sell High, | | | | Investors have traditionally adopted one of these |
| but how do we know when the price is low so that | | | | two approaches. But now, with the advent of |
| we can buy; or when the price is high, so we can | | | | increased computer processing power and intelligent |
| sell? There have been many theories and techniques | | | | algorithms, the investor can get the best of both |
| which have supposedly guided the investor over the | | | | worlds by using Automated Stock Trading software. |
| years. Traditionally, these theories fall into two | | | | Some examples of Automated Stock Trading |
| general categories: the Fundamental Analysis and | | | | software packages are StockPicker from Investing |
| Chartering. Fundamental Analysis is all about | | | | Systems Network or OmniTrader. Additional |
| understanding the nature of the underlying asset so | | | | information can be found at Automated Stock |
| that the investor can make an informed investment | | | | Trading software enables the investor to robotically |
| decision. The analyst will pours over the | | | | monitor the market for Buy and Sell signals, as per |
| company’s financial statements, analyze the | | | | the Chartering model. But it also accommodates the |
| profitability of the market the company operates in, | | | | Fundamental Analysts by evaluating the company |
| and make an assessment of the calibe of the | | | | behind the stock using its proprietary algorithms and |
| management team. Chartering — or technical | | | | fuzzy logic. Best of all, it then executes the |
| analysis — takes a different approach. There is | | | | trades when all the conditions are met! |