Yes, using algorithms for trading options or stock might not be easy. But, nothing is easy in life. You do have to learn and read a lot.

Here is the basic information on algorithmic trading

http://www.investopedia.com/articles/active-trading/101014/basics-algorithmic-trading-concepts-and-examples.asp

As for knowledge based trading, again you have to read a lot, listen and have good knowledge about a particular company. I usually listen and read earnings report a lot every quarter. The key of stock or options trading is to learn about the company you use and or like. This way I know what particular company is doing to hit the estimates or is going to miss the consensus.

Again for example: Amazon (AMZN) - people use a lot, revenue is great but the profit margin since the start has been negative until very recently. CEO/CFO usually gives an outlook of the company during quarterly earning report. Reading past stock chart will give you an idea on how investors view the particular company. Credit/Stock ratings for company by banks such as underweight, outperform, overweight, buy and hold will provide you an idea when to buy and when to sell for quick profit.

Trading is a learning game. Learning, patience and perseverance pays off.

Last edited: 23-Jan-17 07:07 PM