Monday, 22 November 2010

Automated Stock Trading Software and GM Stock

Using stock market software is part of the game now whether you are comfortable with it or not. It just makes thing so much easier and quicker. I can manage all my stocks in one place using Google Finance. I can see everything quickly at a glance without having to log into multiple web sites and compare the data across split screens. Yes it was a bit of a pain to set up in the first place as I have accounts with different brokers. I still tend to use Fidelity’s site every now and then to keep track of how my mutual funds are doing. I haven’t found a way of integrating that with Google Finance just yet. If anyone knows let me know as I’ll be all set from the one screen. I want the perfect stocks for dummies interface!

Automated stock trading software is something I get emailed about every now and then. It tends to be those annoying spam emails that end up in my junk mail box and I really have no business reading. Still, I find myself pondering over them wondering if they could actually make this whole game any easier. Its human nature to try and find shortcuts and lets face it some of the work in buying stocks is really boring. I mean seriously, who enjoys reading over companies annual reports. Especially if it’s the fifth one you’ve read that day. Unfortunately automated software isn’t quite as sophisticated that it’s going to replace all the boring manual work for you. Well, none that I’ve seen anyway. You can use them if you’re interested in day trading or currency trading to manage all those transactions for you. I can’t imagine trading in those markets without using some sort of software. The idea with the automated offerings is you put in a host of parameters at the start and it goes off on it’s own buying and selling as you have instructed. The keyword in that last sentence is ‘you have instructed’ as there’s no thinking involved in this software. It’s just matching patterns based on your initial criteria. Unfortunately we don’t have any Skynet style system that will make you rich. If I did I wouldn’t tell you anyway.

Anyway I’m not saying they’re all bad I’m sure they have their uses. Day traders and currency traders will know what I’m talking about. For value investing, I’ll be keeping my money for now.

In other stocks news this well GM stock is back and available to trade! It’s been up and down like a fat kid on a trampoline since opening on Monday. My advice? Stay away for now and let it settle down. I’d imagine the price will dip and climb until the end of the week. So check back at the start of next week and see how the GM stock price is doing then. The stock market has been pretty unstable as it is lately without this giant of a company making a reappearance. General Motors Co. pulled off an IPO worth $15.8 billion, which was quite hard to believe but in many ways announced the return of the company. I’m sure many of you will remember GM being bailed out by taxpayers to the tune of $50 billion not too long ago. The U.S government sold 478 million shares at $33 each share on the opening day. Things are about to get interesting. Many market experts are estimating that the stock will level out at $36 a share but how can they really be sure. I’d stay away for now, but that’s just me ever the cautious one. General Motors has a bit to go to convince me of parting with my cash. If you're new to how to buy stocks for beginners I'd recommend you do the same.