The process of buying, selling and trading securities varies wildly across individual markets and asset classes, from derivative instruments such as currency to more secure stores of wealth like stocks.
However, financial trading across all of these asset classes should be considered as technical processes, and one that can be simplified considerably by having access to the best and most relevant technologies.
But what exactly are the innovations that will help you to become a trader? Here are some of the best examples:
- Your Trading Device – Smartphone or Desktop?
Let’s start with the basics, as you’ll have to access modern markets and trading platforms though a handheld or desktop device.
Smartphones have arguably become the most popular trading tools in the modern age, especially as mobile penetration rates have increased incrementally across the globe. Mobile phones also allow for more convenient and accessible trading, without compromising on the various trading platforms on offer (we’ll touch on this further below).
However, those of you who operate at a more advanced level may want to leverage a desktop trading platform, which offers far greater processing power and makes it possible for you to run detailed technical analysis platforms on a daily basis. Certainly, if you target numerous markets and process considerable amounts of data before executing orders, a desktop trading platform will be best suited to your trading.
Of course, many investors adopt a hybrid approach as they continue to scale their efforts organically over time, as both devices can be used to achieve different objectives and optimise market accessibility in real-time.
- Technical Analysis Platforms
We’ve already spoken about technical analysis, which is essentially a technical discipline utilised to evaluate specific financial instruments and identify viable opportunities in relevant price trends and patterns.
This is based on the fundamental premise that historic trading activity and price movements can offer an insight into future fluctuations, and it can prove incredibly valuable depending on your precise trading strategy.
Fortunately, you can access a wide range of technical analysis platforms, which offer access to a diverse selection of indicators that can be used across several markets.
One of the best entities within this space is eSignal, which is incredibly popular and boasts one of the most advanced charting platforms in the marketplace. This is widely used by advanced and professional traders too, so it’s highly recommended.
- Automated Trading Platforms
As you do evolve your efforts and become a more experienced trader, you’ll most likely begin to diversify your interests and invest in a broader range of assets and markets.
However, as your trading activity levels rise and your positions become increasingly leveraged (particularly when trading derivative assets such as currency), you should consider using automated trading platforms that rely on advanced algorithms.
Such platforms automate the process of buying, selling and speculating on assets in real-time, allowing for more efficient trades and potentially optimising your profits over time.
At the same time, automated platforms utilise tools such as stop losses, which automatically close positions once they’ve incurred a predetermined level of loss.