4 Ways Technology Has Impacted Day Trading
Day trading began in the early 90s. Because it was least expected to grow into what it is today in the industry, only a few took part in it. However, today, thousands of people want to earn from it. They are trading currencies and stocks–all from the comfort of their sofa. Thanks to technology!
In this post, we’ll shed light on how day trading has changed since its inception and what people can expect in current day trading environment.
Access from anywhere in the world
Technological innovations has impacted day trading enormously. Today, trading can be carried out from any part of the world with the help of a basic internet connection. TRaders nowadays use this feature by choosing to live in the countries they love, and trade from there.
Not only they are living their passion but also are earning a handsome salary. Innovations in technology has made it all possible. Besides, with smart phones, it has become even more easier.
Improves decision-making ability
Speed plays an important role in day trading, and with the inclusion of 4g and 5g, traders have begun to rely on speed to make a split second decision. Nowadays, traders are able to create many advanced orders with the help of hotkeys. Just by clicking on a button, a trader can jump in and out of the position within a nano second.
Not only it increases chances to earn profit but also reduces the risk of losing. Besides, traders can place plenty of orders an hour, offering them the opportunity to enhance their esteem and position in the market, and that too all by themselves. Furthermore, traders nowadays have better chance of positioning themselves in the market, regardless of if they are trading penny stocks or big brands like Google.
Choice of platform from any part of the world
In the current growing world of day trading, traders can trade using their tablets, desktops, laptops and smartphones. If this means anything, in particular, is that traders don’t have to sit on a particular place or in front of a big screen throughout the day. They can trade from wherever they like, and whenever they like, given they have basic access to the internet. As a matter of fact, they can trade even on vacation. According to Timothy Sykes, “Money is just numbers in a bank account or green slips of paper. What money represents, though, is freedom.”
This has made day trading an autonomy job which provides freedom to traders like never before. Traders in the present are quite happier from the traders in past. For sure, this is the best era for traders.
Better trading liquidity
Do you know that it takes less than fifteen microseconds for a trade exchange to be completed nowadays? Many individuals may not understand how quick this.
Here is a case to enable you to better see how innovation has improved exchanging rates: for an ordinary person, a solitary squint takes about 300 milliseconds. One millisecond equivalents to 1000 microseconds which implies a single squint takes about 300,000 microseconds.
One moment equivalents to 1000 milliseconds, which means that a solitary squint of an eye takes 1/3 of a moment. Thus, if you somehow managed to put an offer exchange at the present time, the exchange will be finished before your eyelids meet up to finish a solitary squint.
This is credited to enhanced innovation and fiber optics systems. Many individuals expect that human intercession is expected to finish exchanges. It is even normal to discover pictures of different stock trades loaded with dealers punching orders on the screen on the web.
What a few people don’t understand is that the main part of trading nowadays occurs out of public eye, because of innovation. Because of fiber optics systems, banks and stock-market firms execute through enormous servers that host numerous exchanging engines. This, accordingly, has made greater liquidity in the market.
You might have learned from the data above, day trading has changed significantly from a past couple of years. The present dealers have numerous choices that traders in the past basically didn’t have.
With PCs getting quicker, the fate of day-trading will continue evolving. Individuals who wouldn’t have the opportunity to exchange before are currently enjoying the work from the solace of their own home.