How Information Technology Has Affected Stock Trading

By admin, October 30, 2010 11:30 pm

The floor of the Stock Exchange has been romanticized, vilified and criticized. It's even been the subject of feature-length Hollywood films. But these days, traders don't have to wait to storm the halls after the opening bell or scream out their purchases in the middle of a crowded floor. Thanks to Internet technology, almost anyone can become their own stock broker-whether they're in New York City or Booger Hollow, Arkansas.

Online stock trading knows almost no boundaries, and it becomes easier and easier all the time. Some software programs make it possible for brokers to watch trades, buying and selling when their stocks hit pre-determined financial markers. With the click of a few buttons, hundreds of thousands may be won or lost. Information Technology gives everyone a little piece of Wall Street on their personal computers, laptops…even those handy mobile devices.

But online stock trading, even IT, is not without flaws. The act of buying and selling stocks thrilling, sure, but it's also an art form. Some professionals dedicate their lives to mastering that art; it's hardly possible to learn it after five minutes of playing around on the computer. Some things may be possible thanks to IT, but that doesn't always mean they're positive ideas.

When trading stocks online, set limits. Research investments, and know how the market works, before placing bids or making big buys. Play around with small amounts first, learn how the stock trading software works and get a feel for the market, before making the decision to become a full-time online broker. Playing the market can be great fun…but there is also some danger in it. Information technology is opening lots of doors in the world of stock training, giving more and more people the opportunity to experience it for themselves. Make the most out of that opportunity by learning how to use it.

Photo source Manchester Library

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