There is no denying the role that modern technology plays in our everyday lives. From modern cars to smartphones and AI home assistants, most of us use technology in nearly every aspect of our lives. With that in mind, modern technology has had just as much of an impact on trading as it has in any other walk of life.
For example, who could have imagined that trading in stocks and assets would have become so simple by just opening up a smartphone app from the comfort of our own homes? What’s more, new online brokers are growing ever more interested in the latest ways to make trading and portfolio building that little bit more convenient for the casual investor.
Trading itself is always keeping up with the latest technological trends and innovations. Methodologies are always evolving – and as long as tech evolves, new opportunities will arise for the individual investor.
Let’s take a look at a few of the ways that modern technology has changed the trading world forever, from lowering barriers to providing instant access to the markets, no matter where you may be.
Opening doors to the trading world
When we used to think of trading, we used to only be able to picture rooms full of men in suits, pointing at graphs and frantically waving cash around. However, today, nearly anyone can have a say in the trading world.
With more ways than ever to access trading via apps and online platforms, nearly anyone can download their way into the trading world. Some apps are even free to use and offer short training courses to help new traders pick up all of the tips and tricks that they will need to be able to navigate the markets as safely as possible.
So, now when we think of traders, it can be a man in a suit, but just as easily it can be a young woman at home, controlling her investments directly from her smartphone. Education services are also helping to broaden the trading demographic. It’s an exciting time!
Providing constant access to live feeds and real-time data
One of the best ways that modern technology has influenced trading is by allowing traders to have constant access to the live market feed. They are able to keep track of their investments and fluctuation in the market directly from their smartphones and tablets – there’s no need to head to Wall Street.
This means that wherever traders are in the world, they can change their investments and take advantage of split-second decision-making. This has had a huge impact on the trading world, most notably with markets being able to rise and fall far quicker than ever before. Spikes and dips are growing more volatile – and that leads to some very exciting portfolio building.
Moreover, where once one had to study for years and work their way onto the trading floor, now nearly everyone has access to the most significant source of information that we have today, the internet. Instead of having to rely on years of research and professional traders, modern investors have access to video content, online courses, and apps that guide you through the whole process.
How AI plays a big role in the trading world today
Artificial intelligence (AI) now plays an increasingly important role in trading. Different companies use AI in different ways to help make firmer predictions, to assist traders, or even to influence the markets. For example, AI can help with:
- Analyzing data and executing trades (only at optimal prices) alone
- Making market predictions without emotional connection
- Self-improving trade choices
Individual traders are even using AI in the form of robo-advisors, which can manage and grow portfolios completely autonomously. Users simply need to set risk attitudes and decide how much power they wish to give their apps!
Modern technology has certainly changed the trading world and is likely to do so even more throughout the future. Of course, the most significant impact that it has had is by lowering the barriers into market trading and providing entry to countless people all around the world. From forex trading to crypto, there’s a world of market possibilities at our fingertips.
Whereas trading used to be something reserved for the elite in the field, more and more people are using trading as a means of growing a little extra cash in the bank, and getting involved with some of the biggest brands and markets worldwide. Smartphones are arguably the tools that have changed the trading world the most – by providing that access to the wider, more eager public, and by granting experienced traders extra access to what they need to know.
Now, with the emergence of AI in the trading world and the guarantee that its role will only grow, who knows where modern technology will lead us? For investors and traders everywhere, it’s a very exciting time indeed.