16
Jan/110

The Stockbroker’s Mind vs Stock Trading Software

Stock trading is a vicious industry. Stock market numbers rise and fall in both predictable and unpredictable ways. To be successful in the trade, you need a certain degree of skill and experience plus the finesse to make both factors work to your advantage. Plus you’ll be working with numbers—calculation, statistical probability, the works. Thus, armed with the latest technology, stock trading software programs have come to light.

So how does the broker’s mind match up with stock trading software? Let’s break them down into smaller, but still broad categories. Namely: analysis, patterning, and decision making.

On the analysis part that includes all the computations, percentages, statistics, and probability sampling, it’s understandable that software will always overcome the human mind. This is in terms of both speed and accuracy. Even the most gifted minds cannot keep up with the speed and accuracy of software driven calculations in any field of mathematics.

When it comes to patterning, it all boils down to the database. A veteran broker’s experience is a vast database of previous patterns and market flows that have repeated themselves given specific market conditions. However, if a software’s database would be filled with much the same historic and proven patterns, then software can be just as experienced as humans.

And lastly, decision making—perhaps the most crucial part of being a stock broker. Software can make good decisions based on its analyses and database information, but one thing it can never predict is human unpredictability. In this aspect, the human broker has the edge as he can tell whether a trend or scare can cause a surge or decline in the market numbers.

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