What is algo trading ? | Algo trader क्यों मोटा मुनाफ़ा कमाते है | MUKUL AGRAWAL - YouTube

Hello everyone! How are you all.

Algo traders pull out their profits just like that eagle you saw in this video.

And common retail traders just keep watching them.

Being a trading trainer, it's my duty to update you with every latest trading related information

So that you can update your strategies with time.

Today, more than 45% traders in the Indian stock market book their profits through algo trading.

Whereas in forex trading, more than 92% of traders make profit using Algo trading.

Can you understand how big this data is..

92% in case of Forex and more than 45% in Indian stock market that means NSE.

So that means, understand the ratio of people getting educated.

Think of the people who trade on tips. How are they going to earn.

When 45% of people are trading through Algo trading.

As you saw in the starting video, how eagle swoon the fish

The same is in the case of profits in trading.

And normal retail traders just keep watching and says we are not able to make profits

And this is what we need to understand and learn.

Let me tell you this, that in the upcoming time,

Algo trading is going to be very popular

That's why you should be aware of the method of this trading.

So are you ready to understand this Algo trading? Everything about that.

So I Mukul Agrawal, welcome you on your own YouTube channel

All the new folks, kindly subscribe to this channel and hit the bell icon.

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You might have heard about Algo trading before.

It is also called Automated trading, Black box trading or simply Algo trading.

It is such a technique, in which computer programs are used to set buying and selling levels on the basis of price.

And as share price touches you preset level, order gets triggered and buying and selling take place automatically.

Isn't it amazing!

In micro seconds, not even a second.

Algo traders do trading in micro seconds.

Can the normal traders trade on this speed?

Answer is big no.

With that, sometimes even after setting up the levels, we are stucked there because of

greed and fear and miss the profits.

But in Algo trading, there is no place for emotions my friend.

Because computer is buying and selling your shares.

So I hope you all understood the right meaning of Algo trading.

And also the benefits of Algo trading

So now you may be thinking that if this is so useful then why trading normally rather than doing Algo trading?

See, there's no doubt about this that Algo trading is fantastic.

But every good thing have some negative points as well.

Similarly, here also we have some negative points because of which retail traders are not able to use this.

In our country, only giant traders use algo trading to trade because a high speed setup and network is required for this.

Super fast computer, super fast internet speed.

For which lakhs of rupees are required just for this setup.

And a even a small mistake may result in major loss.

That's why every investor can not do this.

New traders can not even think because their capital is small 50k, 1 lakh, 2 lakh 3 lakh, 4 lakh, 5 lakh.

If they put this much money in trading then how will they trade.

Right! So this is a huge drawback.

If anything mistake done while making the formula of algo trading, even a little one

Result will be big loss. Not small, a big one.

Your whole capital may get finished.

So this is also a major point.

That means one mistake and capital gone.

So now tell me how small retailers will get the profits.

So that's why, now you all might have understood pros and cons

Now an important question.

Is Algo trading legal in India?

So answer is Yes! It's legal.

As in the beginning of this video, I told you about a data fact that more than

45% people are doing Algo trading in India

And institutional investors are more in this.

In 2008, SEBI allowed algo trading for HNI.

And also gave guidelines in 2012-13.

But, because of the less involvement of retail traders in Algo trading,

SEBI didn't made any special guidelines for retail traders.

But now retail investors are getting interested in this.

So some brokers like Zerodha, Alice blue, Upstox, 5 paisa and Angel broking have launched

Algo trading platform for retail traders as well.

Link is in the description.

Hurry up! Open account in any of them.

Angel, Zerodha, upstox whichever you like.

So we'll also get your love.

So through them you can trade.

But here is my one suggestion, don't invest your money without information through Algo trading.

So that's it for today's video.

If you want information about anything new about Algo trading, then tell us in comment section.

We'll try to cover it in the next video.

And share with people so that they will come to know all the pros and cons about Algo trading.

Thank you so much.