Advances in technology have revolutionized the way financial markets function. Not so long ago, a large group of stockbrokers would gather around a company’s spot on the New York Stock exchange yelling out buy and sell orders. Today, consumers can invest in a plethora of different financial instruments with the simple press of a button on a computer or mobile device. Here is how technology changed the way people invest.
Apps are now available for people to download on their smartphones or other mobile devices to buy and sell stocks. Technology-based companies such as Betterment and Robin Hood give average investors a chance to invest without shelling out thousands of dollars to open an account. People can buy and sell the stock with these apps from anywhere at any time as long as there is an internet connection.
These companies use artificial intelligence and machine learning to help investors make trades. Since regular stockbrokers are not needed, companies like Betterment and Robin Hood charge far less in commissions than traditional brokers.
In the past, investors would spend several days sifting through pages upon pages of a company’s financial documents to conduct their research. Today, investors can pull up everything they need to know about a company in a matter of minutes.
Countless financial websites exist that give people information on a company’s earnings report, stock price or another other important information related to the company. All of this valuable information is available with a few simple mouse clicks or a few touches of a screen.
Back in the day, it could take a day or more for a stock buy or sell order to go through. Today, an investor can execute a trade in just a few seconds. Technology virtually eliminated the need for people to take orders on the floor of the NYSE or any other market.
Additionally, technology has eliminated errors that were once common when executing buy and sell orders. Now that money changes hands electronically; human error is pretty much nonexistent.
Investors now receive real-time, accurate stock prices in just seconds, which allows them to make multiple trades and move money numerous times during the trading day. Twenty years ago, it was impossible to execute multiple trades or move money from one account to another in one day.
About The Author
Kyle Dennis is a Professional Trader and Educator at Raging Bull Trading, a trading program designed to help both new and experienced traders master the stock market. Kyle originally joined Raging Bull Trading as a new student looking to master his skills. Through Raging Bull’s Millionaire Roadmap program, Kyle became the first student in its history to make $1 million in trading profits. Following his success, Kyle Dennis joined Raging Bull Trading as a trader and educator. He offers his specialized program, Biotech Breakouts, through Raging Bull, and is focused on mastering biotech stock trading.