Did you know that there was a time when unruly traders at the New York Stock Exchange would trade insults and yell at each other for the whole day? It was a time when the stock exchange market thrived on the strength of a news story, and traders engaged in shouting matches to sell and buy shares. The stock market dynamics have since changed, with high tech trading having revolutionized the trading market.
The world of technology and investments have, over the years, experienced tremendous growth. Maybe it’s because they are two industries that have become massively dependent on one another.
One of the areas that have continued to experience massive technological influence is the stock market. It isn’t easy to become successful in stock trading if you haven’t embraced technology. Let’s look at how technology influences the stock market trade.
The Staring Difference in Terms of Investment Then and Now
If you wanted to communicate with somebody who was miles away during the olden days, you had to either draft a letter or send some telegram. And you all know how slow that would turn out.
The same applied to the stock exchange market. Anybody who wanted to make a trade-in stock was required to call their stockbroker and place an order. And to make things worse, the commission rates for buying and selling stocks were all fixed. And they were exorbitantly high due to insufficient information regarding the same.
The advent of computers in the late 80s and early 90s ushered in a new way of making a stock trade. It made it easier for people to engage in high-frequency trading and forex trading.
Today, investing in the stock market has become relatively more straightforward. Investors have information about the stock market, funds, brokerage firms, fees, and investment options just at the tap of a button. All the data is there on the internet.
There aren’t the cunning stockbrokers anymore. You can scan through the internet and check the analyst ratings today without involving a third party.
Opening a trading account has become easier than before, and it doesn’t take you hours to do so. You need to fill online forms, scan all the required documents, deposit funds, and begin trading. How simple could it get?
Digital Stock Trading
Long before technology found its way into the stock market, trade was slow, and the level of trust equally questionable. People can now engage in high-frequency trading with traders purchasing and selling stocks within a brief period.
Also referred to as day trading, frequency trading makes it possible to invest in stock with minimum risks. It is now possible to earn a lot of money within a single day from high-frequency trading.
It Is Possible to Monitor Real-Time Stock Performance
With the advanced use of technology, investors can now ascertain the prices of shares within a short period. The computers display share prices for all to see, making the trading process more open and credible.
If you want to invest in a particular company, it is now easier to get all the information about it before investing your hard-earned money.
Further, human error incidences have drastically come down, making the trading process more reliable and authentic. Using a stylus pen in highlighting different features on the screen makes it even more effective and more comfortable to follow every live-action. More than ever, people embrace the technological changes and apply them in their daily business interactions.
Apps Are Making Trading More Effective
Nearly all people trading in the stock market have smartphones. Besides making calls and accessing the internet, these smartphones are a perfect place to install apps. Numerous stock trading apps have been developed to make trading more reliable and comfortable.
With a trading app installed on your phone, you can trade anywhere and anytime without any restrictions. The trading apps further open many platforms to try out free trading and learn stock trading basics.
Online Trading
Before introducing technology in stock trading, you had to call a stockbroker to place your trade. However, with online experience, you can now create a direct link between investors and traders.
Moreover, even the stockbrokers have come up with their online platforms where investors can inquire about current stock prices and the latest news.
