Trading Against the Machines: How to Compete and Succeed in the Stock Market

Photo Credit – Photo by KATRIN BOLOVTSOVA

The stock market has been dominated by the Automated Trading System or High-Frequency Trading for the last two decades. This system uses artificial intelligence to recognize patterns and react in microseconds. In contrast, human traders take longer to process information through their memory. The human brain’s working memory can only hold four pieces of information at a time, while some people can hold up to six or eight. However, the Automated Trading System holds more information than humans at a single point in time.

Although humans created Artificial Intelligence, machines dominate every industry, including the stock market. However, it’s possible for humans to compete with the Automated Trading System or Artificial Intelligence. To do so, we need to think, act, recognize, and react like machines.

The first step towards dominating the stock market is to believe that anything is POSSIBLE. We must have faith in ourselves and be willing to work hard towards our goals. However, emotions are a significant obstacle for human traders. Unlike machines, we have biological structures that transfer through DNA from our ancestors for thousands of years, affecting our emotions and decision-making processes.

To overcome this, we need to learn how machines trade and how superior traders trade. It’s crucial to understand what they see in the charts and how they interpret the data. We must get into student mode and focus on the learning process. Education is underrated in the stock market, and we need to build effective brain memory to think, see, act, recognize, and react.

Building effective brain memory takes time and patience, like building a house with bricks. We need to focus on the learning process and practice consistently to develop our knowledge and skills. It’s essential to recognize that we cannot become successful traders overnight.

In conclusion, while the Automated Trading System dominates the stock market, it’s possible for humans to compete and succeed. We must believe in ourselves, learn, and work hard towards our goals. We must focus on building effective brain memory and overcome our emotional biases to trade like machines. It’s a challenging journey, but with patience, perseverance, and a willingness to learn, we can achieve success in the stock market.