Automated Trading
There are many ways to automate your trading. At the most basic level, setting up automatic transfers. There are also more advanced ways to automate your portfolio, such as working with a robo-advisor or AI trading tool. If you want to be hands-off with your portfolio, automated trading/ investing can be highly appealing, but think about the pros and cons before committing.
Pros:
- Portfolio Management is Taken off Your Hands
- Professional Advice
- Potentially Lower Risk
Cons:
- Management Fees Increase Costs
- Lack of Personalization
- Minimum Balance Requirements
Advantages
Some advantages of automated trading include:
- You don't have to spend a large amount of time researching the market and managing your portfolio.
- You may get professional advice on your investments and how to maximize their value.
- Could be lower risk, especially if you chose a low-risk investment portfolio
Disadvantages
Some drawbacks of automated trading include:
- Lack of Personalization
- Minimum Balance Requirements