How to Use the EAs to Trade Stocks
By: Sheikh Hazaifa
EAs are known as “Expert Advisors”. It is nothing but a bunch of codes that do complex calculations and make the trading process much easier. Thousands of traders are using a complicated trading system to trade the stock market. At times, it becomes hard for them to analyze the price movement and all the variables. Eventually, they mess things up and fail to make a profit due to human limitations. Being human, it is very hard to analyze so many variables and take the trades in the complicated price movement. But things can be done in a very smooth way and the traders can take the trade with a high level of confidence by using the EAs. Today, we will learn some amazing ways we can use the EAs and make some dramatic progress in our lives.
Selection of the EAs
The first thing that you should work on is the selection process of the EAs. Many kinds of EAs are available for traders in Hong Kong and all of them have different purposes. You might be thinking that a certain EA is the best one since it is the most expensive one in the market. But after using it for a few months, you will realize, it is nothing but a waste of time and money. You have to select the EAs that suits your personality. Without selecting the EAs in this way, it will be very hard to make a profit and most traders will fail to take advantage of the EAs.
Modifying the EAs
At times you need to modify the EAs to know the perfect price to buy stocks. Due to dynamic changes in the market, things become a little complex for the EAs to track the changes in the global economy. For this reason, professional developers are bringing regular updates to their EAs. But you don’t need an upgrade if you have EAs that can be adjusted by using the settings dashboard. When you do the adjustment to your EAs make sure you test the new EAs by using a demo account. The demo account will give you a clue about the faults and weaknesses in the EAs. Though it is a very complicated process, you can easily learn this by spending a few months demo trading. Once you become good at demo trading, you won’t have trouble making a profit with the help of EAs.
Developing your risk management plans
The EAs are great tools to help you develop your risk management plan. Those who are having trouble managing the risk factors in trading are always losing money because they don’t know the perfect way to manage things in the trading business. But if you look at the professional stock traders, you will realize they are using advanced EAs to manage the risk. They can automatically calculate the risk factors and determine the SL and TP. Some of you might not feel comfortable with such automated EAs but they are great tools when you take trades on a busy day. It reduces human error and improves your win rate.
Getting used to the EAs
Senior and the intermediate traders often don’t like the fact the EAs are smarter than human beings. But there is no reason to think like this. EAs are nothing but coding that can do thousands of operations in the speed of light. This gives you the unique advantage to take trades in the complicated price movement. As timing is critical to your success, if you ignore the timing issue, it will be a very big challenge to survive in the trading business. You don’t have to use an EA but there is nothing wrong in trying one in a demo account.
About the Author: Sheikh Hazaifa is a freelance writer with a background in finance and Trading.
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