Trading Computer

By James McKerr

Computer stock picking is one of the easiest and cheapest ways to increase the success of your stock picks.

One of the big problems faced by all investors is the vast amounts of information to process and analyze. Sometimes it can be baffling and tricky to know where to start looking for the next stock to invest in. It can be easy to get the feeling that professional traders or fund managers must have some secret tool at their disposal. To some extent this is true.

For some years now professional traders (mainly the ones you read about in the press that get multi million dollar bonuses) have used the power that computers offer to help them with their trading. Only recently have these techniques become affordable and available to individual investors.

The secret the pros use is computer stock picking software. These programs are effectively their tried and tested stock trading strategies that have been written down and translated into a computer program. What the computer does is apply the strategy to all of the many thousands of potential stock investments out there. The main advantage of using the computer to implement a strategy has many advantages:

• The strategy is already tried and tested. The stock picking methodology is already tried and tested by the professionals so the element of going into the unknown is reduced. In effect your stock picks will become more likely to succeed.

• Time. Such programs save you such a huge amount of time. A computer can analyze hundreds of stock in the time it will take you to do 1 or 2.

• Accuracy.Computer strategies do not make mistakes. They simply implement the strategy they are programmed to do. They do not make stupid calculation mistakes or miss vital information