Top Trends In Trading You Need To Know – Introduction
The world is always changing and things that used to work in the past might not work in future. For example, look at the retail industry which has been disrupted by e-commerce. Look at the commercial office space that has been disrupted by WeWork that allows people to work without owning an office. Look at the hospitality industry that has been disrupted by AirB&B and the transport industry that has been disrupted by Uber. As a trader, you need to know the top trends that are shaping your industry so that you can be an early adopter.
Blockchain is a technology responsible for items like bitcoins, litecoins, and ethereum. These are simply unregulated currencies that are online based. For instance, if you are in United States and you want to travel to another country. Ideally, you will need to change your currency to the other country’s currency so that you can transact. Blockchain removes this process by enabling you to transact without the need for converting your currency. As a trader, you need to have a good understanding of this technology because it will be big. To date, almost $100 billion of global assets are in the bitcoin technology.
- Cloud Computing
We have heard about cloud computing in other fields for many years. If you are a trader who has never gotten involved in cloud computing, you should look at it. From a stocks perspective, a few companies like Amazon and IBM have invested in cloud computing and have become some of the largest companies in the world. From a trading perspective, there are many opportunities for using the cloud to become a better trader. You should therefore pay a close attention to the cloud and the trends that will follow.
- Social trading
This is no longer a new field but you should pay a close attention to it. In social trading, traders use crowdsourced information to make trading decisions. For example, people without any knowledge on trading can copy trades from experienced traders. In addition, experienced traders can become mentors to the new traders and make money from the investments that they make. There are other ways through which social trading can help you become a better trader. For example, take Stocktwits, a Twitter-like platform that enables traders to share information on different companies. You can use this information to improve how you trade.
- High Frequency Trading
This is an old industry that has been made easier by technology. It involves coming up with a computer code that will initiate or end a trade when a certain criterion is met. In the past, one had to be skilled in mathematics and software development to be successful in high frequency trading. Today, this is not the case as a number of drag and drop platforms have emerged. In drag and drop, you don’t need to be good at coding. All you need to do is to find technical indicators and combine them.
Finally, there is the robo investing technology that enables people to pool their resources together and let software allocate their capital. In this, capital is allocated in equities, bonds, and currencies depending on the risk tolerance of a trader. Today, investors have put in more than $5 trillion in robo wealth advisors like Wealthfront, and Vanguard Personal Advisor.