Why Robot Trading Ideas Can Help The Average Trader

Most people who trade in the stock market don't have that much experience with automated day trading of any kind. For both the beginner and experienced trader alike, employing some kind of automated day trading can help you become a better trader. Simply watching what comes out and studying the chart patterns can be a great exercise to learn more about trading. Keep a logbook of ideas you like, track what they do in the next 20 or 30 minutes to get a feel for how its working. Given some time, you will be able to go back through your notes and then see if the information is good or not. Also its good practice in thinking quickly, which is a must in the stock market.

It is also key to note the ones you are passing on (meaning you dont like the idea, or it seems like it is no good). Often times those can be a real key to improving on your chart reading skills if you notice a pattern of behavior where the automated day trading that you dont like end up moving far more than your top picks.

When this happens, you need to pull up some charts and figure out if what you are picking is off because of current, short term market conditions, or is it because of some other underlying reason. A lot of times its the latter - ideas are chosen because they "appear" less risky, when in reality those are the ones that actually work the best. Its a perception problem at this point, and once you can figure out the issue, its easy to start working on a solution to make yourself a better trader.

Obviously this is not the end all solution, but doing stuff like this can help yourself become a better trader. Over time these types of exercises really do make a difference, as you are educating yourself and able to catch bad habits forming before they have time to actually become a habit.