Statista research, “In 2015, 90 percent of respondents aged between 16 and 24 reported owning a smartphone”.
The benefits are obvious and wide-ranging. Not only can we use them to keep in touch with people via SMS, Email and phone calls, but we can do a myriad of other things with them as well. We are entering the age of “easy information”; within a few seconds we can access a mind boggling range of apps and data. A trend that is becoming more and more prevalent is using your phone to make money, anytime, anywhere, and if you’re looking to make more than just a few quid on eBay, then investigate online trading platforms.
Online Trading Platforms
Online trading platforms such as those offered by City Index have become stratospheric in their popularity amongst new independent traders. Once the playground of only large financial institutions and the very wealthy, the financial markets are now accessible to the masses and here’s why. Online trading platforms are easy to access, just input some personal details and make a modest deposit and you have an account.
The platforms are also easy to use and those who sign up benefit from competitive leverage ratios. Leverage means that for every pound you invest the online trading platform will match it according to their leverage policy, so if the leverage is 1:10, if the investor invests £10 then the actual trade is worth £100. This means that traders can gain access to markets that they may, without leverage, be priced out of. And trading in this way can all be done from your smartphone, laptop, tablet or desktop.
There are many different markets that online trading platform users can access, but one of the most popular is the foreign exchange market (Forex) where global currencies are traded in pairs. The Forex market operates 24 hours a day and is the most traded market in the world. Up to $5 trillion is traded on the Forex market in any one day and it is considered a high risk/high reward trading environment. It is for these reasons that trading the Forex markets is so popular.
The language of the financial markets is something that people need to master if they are to trade successfully. For example, there are nicknames for the various types of currency traded on the Forex markets; the “greenback” is another name for the USD. Some terms, however, are more important. “Shorting” is a good example, which refers to the process of betting that the price of a stock or share will fall and making a profit should you be correct.
Research and Strategy
Successful trading is based on a number of factors. A successful trader will constantly be looking at a range of information that will help them make decisions about what to trade and when. One of the main things to keep a close eye on is global news; the ever changing political and business landscape offers traders insights into how the markets are going to behave at any particular time. A good example of this was the Brexit vote; that single piece of news sent shock waves throughout the markets globally and thus presented traders with an opportunity.
Another way of predicting how the markets might behave is by the technical analysis of charts. Traders look at factors like resistance levels, which take into account how high or low a stock price has been over a period of time and help predict when a stock may have peaked in price or “bottomed”. The technical analysis of charts combined with global news helps to paint a reasonably accurate picture of how the markets may behave, and those who react the quickest to changes are those likely to make the biggest gains.
The Tools of the Trade
It is not uncommon for traders to use robots to do some of their trading for them. Automated trading systems will open positions, monitor them and then close them according to a set of rules that you program. These are mainly associated with binary options trading, but can be used on a range of market instruments. There has been much media speculation regarding the advantages and disadvantages of these systems and some of the press articles have been criticised as marketing exercises.
There are also a myriad of apps to help traders try to get the edge they need in order to be successful and make profits. The Bloomberg app is one of the most trusted and reliable apps for market news updates. The updates are filtered through quickly and are accurate.
Smartphones provide an easy and effective way to begin trading using an online trading platform. Everything you need to trade can be downloaded onto one device and so you can trade when you like and from where you like.
It is important to remember however that having this kind of technology at our fingertips can also be a risky business. The pitfalls involved in trading on your smartphone remain exactly the same as trading in any other way. Your losses can exceed your investments so it is paramount that one acts shrewdly and takes advantage of all the information available before beginning to engage in such an endeavour. There is a wealth of technology and resources available at your disposal, so be aware of what you are getting into and be smart when trading on your smartphone!
Marcus graduated in Economics from the University of Sheffield before working in London in the finance sector. He now lives in Buenos Aires as a freelance writer, with his dog Luna.