Before computers started to play a major role in day trading, all the stock exchange marketplaces were full of traders and brokers. You would have seen it old movies, were traders and brokers are shouting around like a real goods market. Trading of stock, currencies and options were all executed manually.
With the advancement in computing, the scenario today has totally changed. Advanced computer technology has changed the old scenario for better. Now we can interact with other international marketplaces in milliseconds.
How exactly has technology reinvented the way day traders go about day trading?
Accessibility
Sir Tim Berners-Lee created what is known as the World Wide Web today, in the year 1991. It has changed the world forever. In the olden times, traders carried out every single trade manually. It was very difficult to look for the right information about trading. The library was the only source of information and a person will have to spend hours and hours together, reading through financial literature to gain some knowledge.
If you found this difficult, the other way was to contact a brokerage firm and ask for their financial report. Remember, email wasn’t available then, so you’ve to wait till you get such a report via physical mail. If the report was huge, then you’ll have to shell a lot more for shipping.
With the help of internet, information is now readily available for us at the click of a button. Search engines help us to locate the right information in a matter of seconds. The biggest benefit for day traders is that they are no longer confined to the physical stock exchange market.
You can conveniently live in the remotest of placeHow the Internet and Technology has Changed Day Trading Forevers and can still trade in the international market with the help of the internet and online trading systems. This helps a person to find profitable securities and profit out of it before the market changes. If you are starting out to be a day trader, you will have access to tremendous historical data from which you can learn.
Development in order entries
With the automation of trading systems, markets are now able to trade in less than half a millionth of a second, that is 0.0000005 seconds. When you compare this to the status quo before the advent of automation systems that work based on complex algorithms, the differences are shocking. Today’s traders have access to the best, very easily. Latency and time delays are things of the past. Speed is a critical component that makes or breaks when it comes to day trading.
Around the 90’s, a good number of trading was carried out through voice. The OTC market was worth around $ 1.2 trillion. Today, it’s grown to be worth more than $6 trillion and is traded electronically thanks to the help of automated trading systems that are heavily dependent on the help of internet and complex algorithms.
Liberty
Around the turn of the millennium, in the 90s, computers were exorbitantly priced and only the wealthy few could afford it. To be able to access the internet, you will have to do so via a 56 kbps connection.
You can’t use voice and internet at the same time. Trading in this situation would have been a nightmare. Just when you are about to close in on a buy order, if someone called, internet would be disconnected, leading to losses.
Today, users have access to some of the smartest devices on the planet, in their palms. With the help of a smartphone or a tablet in your hand, you are not confined to anywhere or anything.
You are empowered to monitor trades from physically any location around the globe, thanks to mobile solutions for trading platforms. Day traders now have the ultimate freedom and mobility. Vacations are now a possibility without lacking on the ability to trade. All you need is the internet. The market is also a lot more liberated than before. Did you know you can even buy Marijuana Stocks now?
Conclusion
I hope this article was useful for you to learn more about the advancements that have taken place in day trading. If you have any doubts with regards to day trading, let us know through the comments and we will be glad to help you out. If you have any suggestions regarding how we can improve the article, let us know them through the comments as well for us to improve.