The Tech Innovations Giving Traders a Greater Sense of Control

The very nature of trading means that individuals are ceding control to the markets. While traders have full control over deciding what position to take, they have no ability to influence markets once a trade is in play. External factors such as geopolitical concerns and economic policies shape the fortunes of those markets, and these factors are often almost impossible to predict. However, a trader in 2020 can feel far more in control of their practice than their counterparts from even just a few years ago.

Here are three key areas of technological development that give more power back to the people. While there is no crystal ball that helps investors predict the future, these developments give traders the ability to make more informed choices or respond quicker to market shifts. These are two qualities that make investors feel more confident, and with greater confidence comes a greater feeling of control.

Online academies

While you cannot change the unpredictability of markets, you can learn more comprehensively about what fluctuations in the markets might mean and what kind of events may increase volatility. Online trading academies help investors to gain a deeper understanding of markets, covering everything from key terminology to various trading strategies.

For example, the IG Academy provides a range of online courses so that traders can improve their knowledge of foreign exchange markets and feel more confident in their analytical skills. Trading is no longer just for those who have spent years undergoing specialist training to get into the industry: such online academies empower casual traders and make the trading community feel much more inclusive.

Automated trades

It may seem counter-intuitive to suggest that automated trading gives more control to the human investor, but using automation is one of the most effective ways to remove emotion from the trading process. Other than the inherent unpredictability of the markets, succumbing to emotion is the most common way that a trader loses control and loses sight of their strategy.

Automated trading eliminates the chance of responding rashly and irrationally to market swings. A strategy is built on the idea of buying and selling at certain thresholds, so these thresholds can be inputted into a trading platform like MetaTrader. Once certain conditions are met, the trade is completed. The trader has control over devising their strategy and setting up the automation, then sees that strategy carried out without any influence from emotional factors.

Mobile trading

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The rise of mobile trading ensures that traders no longer have to wait until they are sitting at a desktop computer before they can make the perfect play. While automated trades are one solution to this problem, experienced traders are more likely to trust their ability to respond appropriately to shifts in market sentiment.

If significant news breaks while a person is out of the house, then the opportune moment for finding value may have disappeared by the time they return home. Mobile trading platforms give more control to investors, as they can react immediately to fluctuations in value. Even the smallest differences in value can have considerable impact on a long-term trading strategy, so mobile trading helps investors feel like they are more on top of the ever-changing markets.

Whether a trader is following the constant fluctuations of foreign exchange markets or getting to grips with the emerging cryptocurrency markets, there is always an understanding of the necessary risk when it comes to investing. Even the best-laid strategy can be undone by the unforeseeable, but these tech innovations can help individuals feel more in control of their trades.

Featured image credit: Unsplash