Why Mobile Trading Is Taking Over the Financial World
In the ever-evolving world of financial trading, technology revolutionises how individual investors participate in the markets. From the early days of direct dial-up connections to the internet-based trading of the 1990s and, more recently, the advent of robo-advisors, technological advancements have reshaped the landscape. One significant development in this realm is the rise of mobile trading, facilitated by the widespread adoption of smartphones.
Smartphones offer unparalleled convenience, allowing investors to trade on the go. However, research suggests smartphones may contribute to certain investment biases, leading to increased risk-taking and potentially reduced returns. But even with this in mind, mobile trading has soared over the years, so we sought to establish why!
First, mobile trading uses mobile devices, such as smartphones and tablets, to buy and sell stocks, bonds, and other financial instruments. Almost 90% of cellular phones are smartphones. A modest estimate puts the number of smartphones at 6.5 billion worldwide, meaning more and more people have access to mobile devices and the Internet.
In a fast-moving world, many people, especially professionals, don’t have time to trade on a computer. So, they choose to trade on the go, walking with the trading tool, and mobile trading allows them to trade from anywhere, at any time.
Second, mobile trading is very affordable for obvious reasons. The Internet is awash with many low-cost mobile trading platforms, each competing for investors. So, you can pick the best trading platforms and trade without breaking the bank.
Third, mobile trading apps are user-friendly. Even those new to trading quickly learn how to use them.
Researchers have repeatedly proven that mobile trading is taking over the financial world. More recently, a study found that mobile trading accounts for more than half of all retail trading activity in the United States.
While mobile trading offers many advantages, being aware of the risks is crucial. One of the most significant risks is that investors may be more likely to make impulsive trades when trading on their mobile devices, and this is because they may have less time to think through their picks than they would if they were doing it on a computer.
Another risk is that investors may be more likely to overtrade when trading on mobile devices because placing trades with a few taps on a screen is so easy. However, overtrading can lead to losses, as investors may buy and sell stocks too frequently.
But we can share some tips for safe and successful mobile trading:
- Do your research before you trade.
- Use a reputable mobile trading platform.
- Develop a trading plan, and please stick to it.
- Trading is risky, so only deal with money you can afford to lose.
- Frequent breaks help you avoid getting caught up in the market excitement.
Mobile trading is a convenient and affordable way to trade financial instruments. But be wary of the risks involved. If you maintain a high level of discipline and follow these tips, you can help ensure that your mobile trading experience is safe and profitable.
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Author: Dumb Little Man
At Dumb Little Man, we strive to provide quality content with accuracy for our readers. We bring you the most up-to-date news and our articles are fact-checked before publishing.
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