Can You Computerize Stock Market Investments To Win?

Some say that you can very well computerize the stock trading system
based upon stock market technical analysis. Do you think this is
possible? Can you program a computer well enough to predict how the
market will behave 5, 10 or 25 years from now? I very much doubt it
but here are some general opinions on this subject:1. Simulated bad
scenarios - it is true that computers can help a great deal in the
field of the stock market. It can create simulated situations such as
pre-depression, inflation, and other mock such situations which
require extra care with the investments. Computers can help you face
these realities and test your judgment. It would be clear to you
whether you are able to make profit in tough conditions or not.2.
Simulated winning scenarios - are you able to identify which market is
good for you and which long-term investments will work optimally?
Computers can indeed simulate short-term and long-term scenarios that
would test your various strategies and analysis.3. Can you interpret
the analysis correctly - a good investment strategy is very much
dependent upon the accuracy of your interpretation of the various
market factors in play at any given time. To have a successful
campaign, you need to know how to cross-reference the present-day
market analysis with the stock market forecast and the most recent
news of the economic conditions. Computers can simulate various such
factors that would test and hone your skill at the same time.4. Teach
to analyze the market factors and financial behavior of various
companies - how do you analyze these factors correctly. While you
could be the best in theory, in reality you may flounder. Computerized
simulation can once again teach you what to watch out for and how to
identify the key factors that influence the returns on an
investment.5. Computers will convince you that stock market is
definitely not the same as gambling - there are many people who think
that day trading is something anyone can do with minimum or no
training. This is a myth; a very dangerous myth for believing in this
you can walk to your financial destruction. The truth is that
investing in stock market whether short-term or long-term requires
patience, long training and specific expertise. This is definitely not
something that anyone can do with just will power and a little
luck.That brings us back to our question - can computers do stock
investments for you. The answer is an emphatic 'no'. Computers base
themselves on pre-programmed data and there is nothing absolutely than
pre-program the way the economy will swing even if you feed all the
available factors into the computer. There are far too many variants
in the possible scenarios for you to be able to choose one that suits
you best.At the same time, computers are not altogether useless.
Carefully engineered programs can be extremely effective in simulating
real life scenarios and teaching you lessons for free (without the
risk of losing money); and this is some remarkable help indeed.