In today's fast-paced world many businesses have realized the importance
of automation. The stock market is one organization that has adapted.
Millions of dollars can be gained or lost in mere thousandths of a
second. Trading companies had to engineer clever algorithms and programs
in order to remain competitive. Nowadays, Programmed trades
automatically decide when to buy or sell millions of times a day without
human interaction. Despite all the modern conveniences, humans are
entrusted with more critical decisions. Both human and programmed
decisions have their strengths and flaws. The decision to use a human
vs. machine to trade a stock might not be so clear, due to the
unpredictable nature of the market.
Machines outperform humans in
nearly every capacity, but there are many decision-making scenarios
that require the wisdom and instinct of a real person. For example,
trading a stock that is very unstable in price shouldn't be left to a
set of instructions alone. Trading companies rely on human experience to
turn a profit. crucial decisions are made by people, and programs
decide less important trades. Humans do have weaknesses, however.
Sometimes putting too much faith in a stock will result in a loss. Using
proper data, a program will recognize loss and sell the stock without
hesitation. Companies also need the speed of a computer program to make
many trades at once. Using the right tool for the job comes with wisdom.
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