Real Time Trading System: An Overview of Strategies for Novice Traders

AI Stock Trading

In today’s financial markets, real time trading system (RTTS) is a must. A key factor in deciding which system to use and how to utilize it properly is the trader’s ability to understand how the system works and to develop strategies that maximize the benefits of RTTS. Therefore, RTTS can be used to improve overall trading strategy and performance for novice traders.

A RTTS is a computer algorithm that allows traders to make decisions quickly–in the blink of an eye. With the help of real-time market updates and alerts, novice traders can take advantage of timely updates to capitalize on emerging market opportunities. The main advantage of using these systems is that a trader is less likely to suffer from market fluctuations by being able to respond quickly. As a result, traders can be more proactive in making decisions that result in fewer riskier moves and more profitable trades.

On the other hand, to make full use of a RTTS, it is important for a novice trader to be well-versed in the basics of trading strategies. Among some of the strategies that can be employed with RTTS, the most popular ones are swing trading, scalping, arbitrage, and day trading.

Swing trading resembles trend following techniques and requires traders to identify potential highs and lows and buy or sell between them. Swing traders enter and exit the market in a relatively short time frame and aim to capture small profit with each profitable trade.

Scalping consists of short-term, multiple trades with a small profit expectation per trade. This strategy, while considered as high risk, requires knowledge of technical analysis in selecting entry and exit levels.

Arbitrage involves buying and selling securities at the same time to take advantage of price discrepancies in the market. For example, if the stock XYZ is trading for $10 in New York Stock Exchange and $10.20 in Nasdaq Stock Exchange, the trader would buy low in the one stock and sell high for the other at the same time.

Finally, day trading involves holding securities for no more than one day as traders take advantage of stock intraday price fluctuations. As it is considered one of the most difficult strategies, day traders should have a high degree of knowledge on market and technical analysis.

By becoming familiar with the variety of strategies noted and armed with a RTTS, novice traders can become more market wise and trade faster with a lower risk of losses. With practice and the right analysis and information, traders can use the unique capabilities of RTTS to become better informed about market trends and positions.

In conclusion, a real-time trading system can help novice traders to stay abreast of the market and take advantage of opportunities that may arise quickly. By combining the market expertise of the trader with the speed of RTTS, a trader can formulate strategies to maximize the potential profit in the market.