The average individual has little to no understanding of the stock market. Numbers are often thrown around, and it’s made to seem like a more legitimized and complicated version of a casino. However, that’s not true. There’s a science behind the art of stock trading, and automated trading has been making moves in recent years for this very reason. Trading based solely on luck, or that financial uncle’s son’s advice can be tricky because you never know if the cards are going to be in your favor.
Stock market trading, if done right, can be your primary source of income. The adrenaline rush behind getting the timing of trading stocks right and capitalizing on your instinct is enough to make one giddy. High returns, the possibility to invest small and earn big, and the flexibility to do this while holding a job or anything else occupying your time is why people invest in stocks.
Automated trading is a process that allows data exchange and analysis to execute smarter strategies, backtesting, and administer risk management through APIs that would enable the software to interact and allow for transfer between data and requests. These are used by hedge fund brokers, high investment banking agencies, and individuals with deep end knowledge of the market.
4 Reasons Why APIs is the smartest solution for an investor
Automated trading analyses data and provides strategic solutions. This can either be achieved manually by building your own framework or by using existing APIs to derive your solutions. Here’s how the trading market is benefiting from API automation:
- Data: There are APIs in the market that provide you with real-time data and information from various stock markets across the world. This data can help access companies' previous stock holdings versus current, compare market analysis across stock exchanges or simply help keep you informed of the stock prices in real-time.
- Analysis: Access to data gives power for analysis. Analysis in terms of judging a stock price value compared with its past value, predicting stock factors, identifying trend-based strategies, and providing overall comparative analysis and suggestions to stocks and company behavior.
- Pick out stocks: Data backed with analytics, allows for more scope in identifying the right stocks and makes the process of selecting the right stocks to invest in based on time and other factors simpler. It sorts out your dictionary showing you stocks with the lowest current ratios in the short term. It also tracks different stocks and provides suggestions on when to trade them and across which platform. It analyses the real-time price of a stock, the company's data, and the time frame to keep it or manage it to capitalize on profitability.
- Automated trading: Set parameters for trading stocks, these could be setting a key time frame and price limit wherein once a share increases in the said value, it is automatically traded off or purchased. With the help of APIs you can now automate trading and set triggers to stay up to date with information across platforms.
An integrated API portfolio
Roll of a dice luck approach to investing is not only risky but also outdated. Mitigating risk and realizing the power and potential behind unlocking data can help grow investment portfolios immensely. There are APIs out in the market that can help you gather data, provide analysis, backtesting, and automated trading, and help you pick out the right stocks.
This is a practice that can be carried from a high-level hedge fund, to an individual investor looking to trade commission-free. APIs provide a digital arm to assist investors in making more calculated decisions and scale up your operations.
Get in touch with us at Quickwork to build a journey that lets you ride the market smoothly and helps you tame your bulls and bears.