Over the last 20 years, the best operating stock exchange has been the NASDAQ 100 (National Association of Securities Dealers Automated Quotations) with a transcendental profit of 468%. Since the 90s, trading of stocks has been made less demanding with the emergence of the trading accounts online. With the internet, you can easily purchase and sell shares online. All you require is an online trading account, a trustworthy online trading brokerage firm or a stockbroker and you can start trading!
Investors use various trading strategies to make a well-informed decision when it comes to selling or buying shares. Generally, it is dependent on the price of a share or the market it is issued under. When it comes to trends, there are certain measures chiefly – short-term, intermediate, and long-term. Mastering the art of analysing financial charts and the prevailing trends is an added advantage for any trader.
To consistently earn profits in the share market, you’d only want to trade shares that are trending! Let’s have a look at the top four international online trading trends that are revolutionising the trading world.
- Exchange Traded Funds (ETFs)
According to an analysis by BlackRock, nearly 70% of millennials felt that ETFs are their most favoured investment security. With ETF’s prevalence among the youth, ETF was able to attain more than $600 billion in investments in 2017! Share market experts are of the view that ETFs are a great form of liquid assets as they are considerably simple to trade online.
ETFs enable traders to invest in assets that they don’t physically possess. For instance, instead of owning barrels of oil or gold bars, traders can buy ETF investments to gain exposure to a particular industry market. ETFs are more receptive to the market than stocks and have reasonable markups as compared to mutual funds. Thus, the value of ETFs may rise due to an increased demand from traders, and it is predicted that ETF holdings will skyrocket in the coming years.
Cryptocurrency such as Bitcoin has become a favourite investment security for many investors. The growth of Bitcoin gave birth to various ICOs (Initial Coin Offerings), and some digital stocks are presently being utilised in the cryptocurrency exchange. Litecoin and Ethereum are some developing cryptocurrencies in the industry right now, and analysts predict that their market will continue to grow. It is also predicted that the valuation of Bitcoin will be up from $25,000 in 2018 to $125,000 by 2022!
There have been many theories and sceptics with regards to cryptocurrencies based on historical facts. Assets that gain a notable price increase in a short period of time usually enter a bubble and don’t grow after some time. Bitcoin has still to enter that bubble as it is in high demand, and more trading opportunities for cryptocurrencies mean a greater demand for online trading funds.
- The Impact of Alternative Data On Online Trading
As more and more countries use online trading platforms, use of alternative data; the Internet of things (IoT), social media, and satellite imagery has become more powerful. Many investors are utilising alternative data have seen positive earnings on their investment. In 2017, alternative data became increasingly accessible, and it has further potential in the coming future. However, the true problem lies in the trading practice of shareholders to use the alternative data efficiently for relevant purposes. Not only investors but also analytics-focused firms, visualisation analysts, and data providers can earn money by giving advice to those who require the data.
- People Are Learning How To Trade
Many people are showing their interest in online trading, which confirms that investment in trading currencies or financial markets have grown to be an integral part of the people’s resources. Apart from mutual funds, stocks, and online trading currencies, investors are becoming inquisitive about binary options, which allows them to make a profit from assumptions on price changes. For instance, if you think that platinum’s cost will rise at a certain time today, you purchase the binary contract online. Binary options have limited risk and do not require a huge capital from investors. With the arrival of technology in the share market, investors now have a variety of online trading programs such as position trading, day trading, scalping, swing trading, and online CFD trading to invest in. Over time, an investor becomes more skilled in understanding the online share trading market, and spot excellent investment opportunities for higher profits.
The volume of automated data is expanding, and the trick is converting it into a useful state for algorithms to create profitable online trading trends and strategies based on it. Technology has also had a major impact on trading. As an investor, you will have more flexibility in terms of selecting what opportunities are convenient for you in online trading by analysing the current trends.
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