Trading Bots

Stock Trading Bots on the Rise Following the crash of Crypto Markets

Trading bots have been around for decades, but in the traditional markets, they were never as popular as they are in the crypto industry. 

The crypto sector has popularized them due to the complexity of trading and investing. Digital currencies are much more volatile, and the reaction time of the trader has to be a lot faster. In fact, often enough, it has to be faster than what humans are physically capable of.

However, following the collapse of the FTX exchange and the crypto crash during the year-long crypto winter, a lot of investors started using trading bots for trading stocks, as well. Many crypto traders switched to traditional finance after getting a taste for trading, but finding that the crypto markets have become too risky.

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This led to a significant rise in the prominence of stock trading bots, as they are still very much convenient to use. 

Like crypto bots, stock trading bots are also doing everything automatically, and all that users need to do is set them up. That means instructing them when to react by entering a number of parameters 

That way, the bots will buy when the conditions you entered are met. They won’t act on emotion such as fear or greed, and as long as the parameters you entered are good, the bots will keep bringing in money through safe trades.

Acting on emotion while trading is one of the biggest problems and flaws of traders, because they tend to buy before the time is right, or sell in fear of missing the peak. The bots will perform analysis and monitor the price movement and only make a move when the market conditions are right, making them extremely efficient.

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Now, stocks are not as volatile as cryptocurrencies, so you can still trade them manually, of course. But, if you wish to automate the process and day-trade without having to monitor the market constantly, then stock trading bots are a perfect thing for that, and the traders are recognizing it, hence the surge in their usage.