Many investors subscribe to newsletters to get recommendations on which stocks to buy and sell. These newsletters typically send out alerts on a schedule, and this works well for some investors.
Automatic trading, also known as "auto trading," is one of the strategies you can use to trade stocks or options without as much personal involvement. Below is some basic information about auto trading to help you decide whether this approach is right for you.
The term "auto trading" means different things to different people. This makes it so that the risks of automatic trading depend on which type is being talked about. In one sense, the term refers to the use of software to execute trades in a live account. Another sense refers to allowing a broker to execute trades for an investor "automatically" – with no input from the investor. Both of these carry risks, but they are quite different from each other.