Stock Trading Software Vs Human Brokers in 3 Aspects: Analysis, Cross Referencing, and Decision Making
The rage about Humans Vs Machines is on again with the advent of smart free stock market software that can take into account all the factors that dictate how the stock market will behave. But how well do these software programs perform as compared to brokers in the three main fields of stock trading?
Analysis
Human brokers are admittedly at a disadvantage when it comes to analyzing the numeric data that the stock market follows. In terms of both processing speed and accuracy, humans can never outdo software when it comes to calculating the percentages, the statistical probabilities, and all the other measureable factors included in market analysis.
Cross Referencing
When we talk about cross referencing, we’re referring to current market patterns matched against previous patterns and if market conditions can replicate and thus repeat the patterns. Brokers with enough experience and knowledge in stock market history, trends, and patterns can predict how the stock market will behave if they see current market conditions are similar to what they once were in the past. Computers and software can do the same thing even better given that their databases are supplied with the related information.
Decision Making
Decision making in stock trading is dependent on the data and analysis and cross referencing made. And as we’ve seen above, software can do better jobs at all these compared to human brokers. But—and this is one big BUT—the final call needs to be left to human brokers. Why? The answer lies in the fact that there are unpredictable human market behaviors that no computer or software can effectively take into account as much as a human broker can.
So the final say is that software programs are invaluable assets, but they can’t be so much more than just assets.