Earning money from the stock market is not easy. We all heard so many stories of how people get rich from the stock market and on the same side how people get bankrupt from the stock market. And that’s the reason why most people fear losing their money by investing in the stock market.
But don’t worry, today I am going to tell you an amazingly powerful method from which you can minimize your risk of losing money in the stock market.
This method is known as Algo trading. First, let’s understand what Algo trading is and how it can help you. So in simple words, Algorithmic trading is also called Algo-trading. uses a computer program that follows a defined set of instructions or an algorithm to place a trade. The trade, in theory, can generate profits at a speed and frequency that is impossible for a human trader.
Okay now let’s understand this by an example.
Suppose a trader follows these simple trade criteria:
- Buy 50 shares of a stock when its 50-day moving average goes above the 200-day moving average. (If you don’t know about “Moving average” So, A moving average is an average of past data points that smooths out day-to-day price fluctuations and thereby identifies trends.)
- Sell shares of the stock when its 50-day moving average goes below the 200-day moving average.
Using these two simple instructions, a computer program will automatically monitor the stock price (and the moving average indicators) and place the buy and sell orders when the defined conditions are met. The trader no longer needs to monitor live prices and graphs or put in the orders manually. The algorithmic trading system does this automatically by correctly identifying the trading opportunity.
So I hope now you get some idea about Algo trading. If you want to learn trading and how to earn money from the stock market. Then you can join our “Complete Stock market course”. This is a revolutionary course that teaches you how to invest in the stock market from scratch. Learn how to make money with the most common investment strategies and techniques used by professional traders to earn consistent profits from stocks.
And to be honest, If you want to learn how to trade and invest in stocks, there are a lot of resources available to help you. There are books, blogs, and other courses as well that can teach you. But this course is created with my 10 years of experience in the stock market. I have earned more than 5-6cr from it and I promise to give you the skills you need to have a successful investing career. Buying this course is your first investment!