Technology has impacted the lives of billions. With technology evolving every single day across industries, it isn't easy to imagine a future without being surrounded by technologies. The penetration of technology has also influenced the stock market industry making it more efficient and helping consumers take leaps and bounds.
According to experts, millennials have piled up in the trading industry and can fuel the market to disrupt the stocks. While in talks with Aditya Meera Sharma, a millennial in the trading industry, here is the analysis of how technology has influenced the stock market and its consumers:
1. Digital Trading
Technology has drastically changed the way investors trade and have elevated digital trading. Digital trading has allowed small risk-takers to invest because of high ROI, discounted brokers, and minimal risks. Anybody can start trading with INR 10,000 and can expect minimal losses compared to their brokerage.
Brokers can now provide 4X leverage that allows small investors to buy four times their original capital. However, it is a significant benefit for dynamic risk profile traders to maximize their money quickly..
2. Real-Time Stock Performance Analysis
Technology has made selling and buying shares easier than before. With the help of technologies, investors are now aware of the latest stock updates and can track the market performance in real-time, making it easier to execute and stress-free trading and analysis.
Recalling how Mr. Sharma use to help his mom keep an eye on stock charts on CNBC and watched his mom calling brokers to execute a buy position and exit position that always resulted in the delay, he added, “Today it’s all in front of the screen, brokers have their trading platform and with a single click we can know the current market price of the stock, we can execute the orders and it would take less than 2-3 second to get in to a trade or exit out.”
Investors can also study the market trend before investing their hard-earned money in any company. It is also recorded that, unlike before, the errors in transactions have also reduced because of advanced features programming in technologies.
3. Sporadic Market Shift
“Earn More” is the easiest trap to fall for. With everything becoming digital across industries, digital platforms are one of the ways to disseminate false information and mislead investors. It is needless to say that a message is forwarded within seconds, even before the individual reads the message entirely or verifies it.
Aditya suggests choosing the right mentor is one of the ways to minimise such frauds. You must always ask the mentor to show their past year profit and loss statement before taking it forward. Trading cannot be skilled in just 2-3 sessions and so choose the mentor who would guide them for months about the ups and downs of the game.
4. Development of Mobile Application
Nowadays, many trading applications are available on Playstore, keeping the stock market details at investors’ fingertips. An investor can trade from anywhere anytime has increased the number of investors because of lesser restrictions.
Unlike hefty trading fees that reduce investment gains, trading applications have reduced the fees, allowing investors to gain more wealth and even attract new investors to join the stock market industry. Many applications also teach and provide you with demo accounts to learn the trading basics.
5. Artificial Intelligence
Controlling your greed and fear in trading is not everyone’s cup of tea, and hence many people choose to simply code their strategies and let AI do trading on their behalf. The future of trading has more about AI takeover as it allows an individual to also focus on other chores; however, this type of trading style may not be accessible to everyone and will have to face difficulties in competing with the fastest computers compared to theirs’.
6. Increased Investors
During COVID-19 and yet, people have lost their jobs within seconds, reflecting that having a full-time job is also equally risky. You could be laid off anytime for reasons. Many people choose to trade full-time or part-time because of the money factor that they can earn more or less to their regular job income.
The Internet is a library of all information that you want to learn about. The combination of the Internet and technology in the stock market industry has attracted more investors. According to reports, 19.5 percent are individual investors in 2020 that is double of 2010.
Because the Internet is accessible to everyone, one can learn the basics of trade, and technology has proven to be a boon to the stock market industry. By following the old traditional way of trading, no one would have taken the effort to consider trading in the present.
Technology has made the lives of human beings easier than anyone could have imagined. Everything can be performed at your fingertips error-free. With more advancements, it will effectively and efficiently shape the future of the stock industry.
However, investment's gain and loss are not the responsibility of technology, considering it is the only means to provide you with the market prediction. Rest assured is the test of your trading skills.