The Role of Technology in Trading
While the act of transacting in foreign currency in itself is nothing new, as international trade has been around for centuries, it has become more part of our everyday lives through technology. The use of technology and the internet has opened people’s eyes to the investment and profit-making opportunities that exist within both forex and stock trading.
For novice traders, there is a wide selection of online tutorials, workshops, webinars, e-books, and the likes on how to go about getting started with trading. Because the forex market is open 24/7, it can be extremely volatile and vulnerable to political and economic changes, as well global circumstances in general. The close monitoring of the market and tracking of currency and stock movement was previously done manually, however, that is no longer the case. With the use of the right tools and platforms, it is relatively easy to start and continue trading from the comfort of your own home.
Suggested Apps and Trading Platforms
Given the growing interest in trading, there are many trading tools, apps, and platforms that have been developed with the aim of making the process easier and more manageable. Named amongst some of the recommended trading platforms in USA are TD Ameritrade, MetaTrader, Fidelity, Charles Schwab, Interactive Brokers and E-Trade. These trading platforms will be of very little use without a proper strategy or plan of action based on analytical data obtained through the use of the relevant tools. Most trading platforms offer such tools, but in some cases it may be at an additional fee. Nonetheless, these tools tend to provide historic trading data to guide strategy, price trends and patterns, valuable indicators and projections, as well as guiding information for novice traders.
There is also the option of using trading robots, an automated option designed to track activity and trade based on the repetitive elements of the market. Trading robots are computer programmes that have been designed to carry out certain trading activity, but there is still much contention on whether or not they are worth investing in. Although there are trusted and credible ones, there are also some questionable ones on the market.
Trading on Mobile Versus Desktop/Laptop
The question of whether it is better to trade on your phone or on a laptop/desktop is one that has been asked many times, with no definite answer. This is highly dependent on preferences and access to either one at a given time. It is often said that young traders tend to gravitate more towards using trading apps on their phones because it is what they are most accustomed to, while more experienced and older traders are said to prefer desktop/laptop trading. On the move, however, mobile app trading is most convenience as it provides immediate access to market activity. One key factor that may be worth noting is that some apps may have lags or delayed updates, depending on the developer or broker, which may have an impact on one’s trading activity and reaction to market changes. Moreover, some may find the smaller phone screen inconvenient, whereas a desktop/laptop screen can provide a broader overview at once because of the wider screen. Therefore, the general consensus is that desktop/laptop trading is preferable for analyses, while phone trading is advisable for staying in the know if you are on the move.