Day trading versus algorithmic trading: which one is better?
Have you always been impressed by those slick day-traders in the movies and eager to experience the rush, fame and glory for yourself? Well: you’re in luck. I’m comparing the two most popular trading methods side-by-side, allowing you to find out which form of trading suits you best. Bots versus humans. Who will win? Let’s find out.
Sit back, relax and enjoy the story!
Different forms of trading
To discover which form of trading suits you best, we need to put both options under the spyglass. Option one is day-trading, a form of trading where you can trade on your own or with the help of a professional. Option two, on the other hand, involves relying on algorithms, also known as bots.
Both forms of trading have their pro’s and cons.
What is day-trading?
Day-trading is a popular method of generating a return (profit) on your investment. You buy and sell assets within the same business day, intending to make as big a return possible. But unfortunately, day-trading isn’t the easiest thing to do. If you don’t know what you’re doing, you risk losing all or part of your investment. Still, you run into ads and articles about successful day-traders that “get rich in minutes” all over the internet. But is it really that easy?
All successful day-traders earn their success after a lot (and when I say a lot, I mean a LOT) of hard work. They’ve specialized themselves in ‘the art of day-trading’, spending all their time and energy on it — for years. Logically, the more you do it, the more skilful you become — and the more money you might make in the long run.
How to become a day-trader
But to get really good at day-trading, you need to have a vast amount of knowledge and experience to work with the right tactics. Because in the end, that’s where your success will depend on. If your tactics aren’t good enough, you won’t be successful.
And then there’s the human element that’s involved in day-trading: emotions. There’s a good reason that most successful day-traders work with therapists to ‘control’ their feelings. As you can imagine, day-trading is a stressful business, and you wouldn’t want your emotions to get the better of you and make you lose all your money, would you?
Algorithmic trading: how does it work?
Now, even though day-trading can be a brilliant strategy, in the long run, not everyone (including yours truly) has the time and energy to focus on the trade the way the professionals do, which brings me to the second strategy: investing in BOTS.
The BOTS app works with algorithms developed by day-traders experts and professional developers. These algorithms, called bots, use artificial intelligence and machine learning to improve their trading strategies constantly. They’re designed to buy, sell and hold at specific moments, all to create the most significant return possible. But maybe even more important: they don’t have feelings. They’re not bothered by human emotions like stress and fear and are, therefore, often a more reliable companion on your investment journey.
Why would you use algorithmic trading?
The most significant benefit of trading with BOTS? You don’t need the time, knowledge, experience and energy you’d need to become a professional day-trader. All you need to trade with the BOTS app is some basic knowledge: the algorithms will do the hard work for you.
The downside? The bots in the BOTS app can only do what they’re programmed to do — nothing more, nothing less. Whereas humans can react to situations and make more informed choices, the bots in the BOTS app do what they are designed to do. This is why big companies and banks use algorithms to do the trading but ultimately have actual people sitting behind the computers who use real-time information updates to adjust these algorithms.
Algorithmic trading versus day-trading
What works best for you? Only you know the answer. Take risks you’re willing to take and the time and energy you’re ready to spend under consideration — and as always: do your own research.
Would you like to learn more about the BOTS app or get some more trading in cryptocurrency tips? Just continue reading below.
See you soon!
BOTS is a tech company that has developed an app that makes it possible for anyone to start investing. You only need €50 to get started. BOTS uses automated trading strategies based on algorithms. We call these algorithms bots. These bots are tiny superheroes: they make automated investing accessible to everyone. With their help, you can invest in cryptocurrency within minutes — without any knowledge! And we’ll do you one better… In 2021, you’ll also be able to invest in stocks and other currencies through the BOTS app.
The app is free to download and quick and easy to install. BOTS currently operates in more than 15 countries, and by the end of the year, BOTS wants to be active in at least 60 countries and four continents.
Need any help with anything?
Even though automated investing is incredibly easy, you might need some time to find your way around the app and discover all the options. So if you still have questions wandering around your mind, or you just can’t seem to figure it out, please do not hesitate to contact the BOTS support department.
Don’t feel like calling our support team? Just head to the BOTS YouTube channel and browse through the dozens of instructional videos that may help you further. You are also royally invited to the BOTS Discord channel.
Ready to get started?
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.