Is Technology Revolutionizing the Stock Trade Industry for Good or Bad?
Tech has had a positive effect on the science of stock market trade as equally as research science itself. However, unlike progressions of scientific research always being positive, positive advancements in tech can hinder the stock trade as equally. Just as alterations in stock charts can be good or bad, so also are the ways tech is changing how we do business. What was once a true science of experts reading and interpreting charts has in some ways diminished to be more unpredictable than ever before?
This is thanks in large part to modern tech altering the way trade is done as frequently as the ever-fluctuating stock industry. Even as this article is being written, advancements in tech continue to inadvertently accelerate the market negatively and positively. This is largely due to numerous features, even including calls and puts options being available at the tap of a button. Therefore, getting involved in the trade game has never been easier.
However, the tech trade game isn’t for everybody. Only after knowing the pros and cons of the tricks of the digital trade, should one dabble in science. There are significant discrepancies between digital and broker-based trading. Here are both the pros and cons of digital trading. Let’s start with the cons.
Con: Market Volatility
With an increased influx of mobile access from both experts and beginners alike, high traffic easily induces a volatile market. One issue with the mobile trade game is the luxuriously easy access mobile devices have provided.
This almost abnormally high traffic occurs because tech has removed the middle man. Gone are the days of having to go through a 2nd party to speak on your behalf. Making these chief decisions to buy or sell at a single tap makes any uneducated and unguided user an expert. It’s no coincidence Bank of America claimed the first few months of 2021 pulled more investments than the 12 years preceding.
Pro: No Broker Necessary
Many mobile apps provide easy sign-up accounts with immediate trade capabilities, making brokers to some, a thing of the past. Buying and selling can literally take
Seconds from your phone without the need of a middle man. Many of these mobile accounts are made with simple and quick verification methods.
Therefore, what may harm experts and some traders, may give others an opportunity that would have otherwise not been available. This in essence has put the little man on the big board or at least given him the opportunity to be.
Con: Potential Loss
Though this is a commonly accepted possibility for any investor, the likelihood skyrockets at the prospect of an uneducated investor. Most uneducated investors come onto the scene via mobile apps without the expert insight advisable for beginners. Unfortunately, many cyber traders learn about being a bag-holder firsthand.
Pro: Little or No Fees
One of the main attractions of cyber trading is the fact that you usually pay nothing for setting up an account. Furthermore, there are no brokerage fees connected to many mobile investing accounts. This is a popular and effective selling point for mobile traders such as Webull. In the mind of the casual investor, why pay for a brokerage fee when you can do it all yourself?
Con: Declining Broker Usage
With the majority of broker insight information available via the internet, brokers are being put out of a job at an accelerated rate. Many people no longer see the need to involve a middle man in their investment decisions. To take it even further, many people don’t prefer to have a ‘professional marketer’ dictating where their money should go.
Pro: Complete Control of Your Finances
Whether you are retired or a business owner, you know that management is key to success. Just click here to learn how crucial it is to manage time, employees, and money. In fact, most are finding an added sense of security by personally managing their finances in the stock market. Always having control over your investments is the number one comfort of cyber buying and selling. Especially in light of historic events that have shed light on untrustworthy brokers, people are left hesitant to trust a professional investor.
Con: Gambling Addiction
Depending on how it is utilized, Digital trading can be the quickest route to gambling addiction. For some who lack self-control, the stock market can be an endless digital casino. Having a national casino at your fingertips can be a dangerous opportunity for many.
While digital trading has its many benefits, one must wonder whether it is to blame for numerous persistent market volatilities. Because the current market seems unreadable due to high digital traffic, today’s market seems more suited for the day trader. For every individual it has made rich, it has easily destroyed as many. However, only you ultimately know whether it is the best route for you.