| The great sea change in day trading as a profession | | | | programmers of the software, and the day traders |
| is the development of day trading robot software. | | | | who lent their expertise to it, they're quite refined. |
| These tools are information aggregators that will pull | | | | The major claim to fame for this software is hard to |
| in specific data about how the markets are behaving | | | | verify - it claims to be able to learn from bad trades. |
| and make recommendations on what stocks to buy | | | | Now, this is an important claim, and if it's true, the |
| and what stocks to sell. | | | | Day Trading Robot software is something |
| Stock tips are nothing new; they've been an | | | | revolutionary. You see, automated analysis and even |
| emergent behavior of markets and information | | | | automated buy-and-sell programs are nothing new; |
| transmission speed increases since the first public | | | | tying them together has been going on at the big |
| stock markets opened in the sixteenth century. More | | | | trading houses since the 1990s, and it's only |
| recently, stock tips were sent out with telegraph | | | | accelerated as the mathematical models have gotten |
| wires in the 1830s and 1840s, over telephones in the | | | | more complex and robust. However, to date, no |
| 1880s, and through ticker tape messenger boys in | | | | software has been able to replace human judgment |
| the first quarter of the 20th century. | | | | in the loop. |
| With the advent of personal computers and fax | | | | Humans need to decide when to ride out a market |
| machines, stock market tips moved even faster, and | | | | surge, what sectors they want to invest in, and, |
| their volume increased (as did the total complexity of | | | | most importantly, what to do when the market goes |
| the stock market). Now, the amount of data you | | | | out of bounds, like it did in October 1987, where |
| can get for stock tips is, bluntly, overwhelming, and | | | | automated trading programs magnified a major sell |
| parsing it all now takes longer than placing trades | | | | off and drove the market down by almost 25% in a |
| would have in the old days. (Now that automated | | | | single day. |
| trading software exists, it's even easier to make | | | | In the end, we take the news of the Day Trading |
| money with stock trading, since the broker | | | | Robot Software with a bit of skepticism. We are not |
| bottleneck no longer hinders your operations.) | | | | convinced that it can replace a human trader's |
| There is a specific item of software out there called | | | | judgment at this time. We do think it's a valuable |
| the Day Trading Robot Software. It is a neural | | | | analytic and trading tool, but much the same way we |
| network market analysis program that takes a lot of | | | | wouldn't leave a car running unattended with the |
| data in and matches it to some black box proprietary | | | | engine running, we wouldn't let this software do our |
| algorithms to make recommendations. These | | | | jobs for us. In the end, day trading is still a job, and |
| algorithms represent almost a half century of day | | | | what this software does is make that job easier. It |
| trading experience, and according to the | | | | doesn't do it for you. |