Mechanical Stock Trading System

A mechanical stock trading system is a previously tested (hopefully) trading system which removes some or most personal interaction.

There are a wide range of hands off approach systems to look into. I'll provide details from what I've experienced myself below to help you get started.

Some of the types of different mechanical stock trading systems available include: 1) developing and/or using a computer program that scans and selects individual stocks for you, 2) A written trading plan complete with rules for entry and exit signals that can be followed with a personal interaction thus becoming a semi-mechanical stock trading system.

The first solution above using a computer program involves either developing the program yourself, paying somebody to develop the program or purchasing a program that has previously been developed. Whichever of these 3 methods you choose, each program will have to be tested using some type of stock trading simulation to determine the success rate of the specific system. Once acceptable results are obtained, the system can be put to use live in the the market with real funds.

A great example of this method can be found over at Tradestation. Tradestation is geared towards trading system development for both beginners and advanced users. They also have systems available in a marketplace that have already been developed, tested and are now being marketed.

The second method I mentioned above that I refer to as a "semi-mechanical" stock trading system. Similar to above, you can develop your own set of trading rules or purchase a trading system already developed and tested by someone else.

Once you have the pre-determined rules to follow, don't stray and follow them as best you can. By doing so, you'll remove the decision making process that normally is involved with each single trade while having to search for and select stocks.

Once stocks meet your criteria, you then step in and take action. A good example of this is the way Market Club is set up and run. You can find stocks based on their predetermined criteria via scans, alerts or any one of their successful portfolios that are accessible to all members.

Market Club provides a 30 day risk free trial period where you'll be able to test out what they offer, and see actual results. Take a look and sign up for your Market Club Free Trial today and see for yourself. If you have any questions about using their products and/or services once becoming a member, let me know and I'll help out where I can.

For a longer term investing strategy that you can develop into a system of your own, I have written a previous article on an exceptional strategy that I can highly recommend here: Leveraged Investing as a Long Term Investing Strategy


Many of these semi-mechanical stock trading systems will also offer specific stock picks at an additional cost. If you are interested in any of these offerings, you can pay close attention to the individual stock picks and see how they fit the criteria of the system. In time, you'll be able to find your own stocks.

Using some type of mechanical stock trading system is really the best way to go for long term success. If you don't use something like this, you'll be more like a gambler at a casino who is striving for good luck.




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