Wednesday, December 28, 2016

Is Algorithms Based Trading Safe?

Actual Question:


Sir, Is Algo trading suitable for layman like me?  If it is, which is the best knowledge center and best software, Ambibroker or Zerodha or Omenys?

Answer:

Man shocked by losses incurred through algorithm based trading on margin
Shocked man staring at losses incurred through algorithmic trading on margin
Dear Friend!
Algorithm (Algo.) based trading is not good for anyone. There is no best knowledge centre, no best software. It is all hoax. If it were not there will be millions of billionaires. Why will IT companies struggle hard to make software - they can simply make money from stock markets?
Forget about Algo., even ordinary trading in stocks or commodities or currencies is pure speculation and extremely dangerous.
What is your objective?
Getting rich?
There is a much simpler, surer and safer way to riches and wealth!
Learn and become a value investor.
How?
Read the book “The Intelligent Investor” by Benjamin Graham.
There are a number of good websites / blogs, including my own blog “Wealth Vidya” where you can learn and practice value investing.
Open a Demat Account and online stock trading account and start investing in good stocks for the long term.
Get rich slowly but surely and safely!

Suggested Further Reading:


Thank you,
With Best Regards
Anand

Systematic Investment Plan (SIP) Slide

Man walks to invest every month with discipline
Man investing systematically every month