Technology has impacted our daily lives in many aspects in recent years, especially since the outbreak of the Covid-19 pandemic – and trading is no exception! Over the last decade, investors and traders have leveraged technologies that allow them to make more informed and faster trading decisions, as well as better protect their trading capital with advanced risk management tools.
Let’s have a look at some ways technology improves the trading process for retail traders.
Technology has made it easier to access free information and financial education to boost investors’ financial literacy and improve their trading knowledge. Today, there is so much free content you can find online about financial markets, trading tips, trading mistakes to avoid, and proven trading strategies, that it’s easier than ever to get a strong trading education and start trading.
Brokers also offer demo trading accounts with virtual funds, so then investors can test their strategies without risk. This type of account can also be used to learn about the way markets work. Brokers often offer a trading research section, or tools driven by technology like data science, artificial intelligence, and machine learning, which can help investors filter a massive amount of data to visualize what’s important for them to build a strong portfolio.
Because our phones and tablets are becoming real rivals to our computers when it comes to power and speed, it comes as no surprise that an increasing number of investors are trading the markets via trading apps on smartphones and tablets. The option to trade on the go has only been possible in recent years thanks to technological improvements, both in terms of connectivity options and new devices.
Technological improvements have also helped traders create more advanced automated trading strategies, especially when it comes to algorithmic trading and trading robots. Automated trading systems use a computer program to analyze the markets and open/close positions according to predetermined criteria. Trading automation is a great process to take advantage of the latest technologies, to remove all human emotion from the trading process, and to be able to trade the markets even when you’re not in front of the markets.
Today, many brokers offer more and more ways for traders to use risk management and trading tools to secure their investments against risks, like free guaranteed stop-loss, negative balance protection, and proprietary tools such as dealCancellation by easyMarkets, which allows a trade to be undone within 1, 3 or 6 hours for a small fee, subject to terms. To be successful, a trader needs to implement risk and money management rules to protect its trading capital.
Technology gives investors and traders a chance to better monitor their investments and quickly react to any sudden changes if necessary. With technology, it is easier than ever to manage your portfolio more effectively, as trading accounts are easily accessible online wherever you are, whenever you want.
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