Why A Mobile Phone Is An Essential Device For Those Who Are Interested In Investing And Trading Today

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Markets move so quickly on breaking news these days it is vital that traders and investors be able to pivot and readjust portfolios almost instantaneously. Previously traders would have struggled to respond in real time to sudden macro events  as any change in positions or stop losses would have required being sat at a desktop or picking up the phone to a broker.

A Mobile Phone Is An Essential Device For Those Who Are Interested In Investing And Trading Today

This need for instant response also applies to a major company like Apple or Google posting their  earnings after the market is closed – and top-tier online trading apps like Plus500 Australia are one’s way to keep up with all the market changes instantaneously. Such changes in mobility and the rapid growth of the trading community would not have been possible without the digitalising wave within the industry. With the advent of mobile phones, alert traders can respond at the click of a button no matter where they are located or what time of day it is.

Why A Mobile Phone Is An Essential Device For Those Who Are Interested In Investing And Trading Today

Always On

The first advantage of having a mobile phone when investing and trading is that it is now possible to make that urgent, necessary call to your broker wherever you are and any trades can be executed in minutes. However the greatest advantages of a mobile, or smartphone, are the apps that either come with the phone – Stocks on iOS or apps that can be installed directly from trading and investing companies. These are extremely popular for offering fast and reliable execution, zero commission, tight spreads and fast and secure withdrawals. Best trading platforms also have an option of a free demo account in order that beginners or novices can learn the basic rudiments of practice and strategy without having to use any of their own money. Furthermore it takes security very seriously and all customers trading accounts are ring-fenced and protected by law. The app is available for iOS and Android.

The Pros of Mobile Trading Apps

Cost efficiency. Commissions are in the best apps, zero. (The costs are included in the spreads.)

Another great advantage of the modern trading app is access to foreign markets and the ability to trade 24 hours a day – the Nikkei being open whilst Wall St sleeps. Convenience is also an upside as previously under the old brokerage system, it would often take some time to build up a relationship with a broker, often involving hours of form-filling. These days with mobile apps it is often only a few clicks away – open an account, verify it and then add money to your account.

This not only is a benefit to those who live far from urban areas but for those who may not have access to a desktop.

Another benefit is education. As a novice the lure of making big money on market moves can be so attractive that traders can jump in and make the most elementary mistakes. In order to avoid the usual pitfalls all novices tend to make, it is important to be educated  about the craft and intricacies of investing and trading. Accordingly, the best apps for mobile will include hours of free training materials including webinars, free courses, analysis, news, podcasts and video material.

Finally another attraction of trading apps to the modern investor is the amount of funds required for an initial investment. These days you don’t have to be a millionaire to open an account. For many apps the initial investment you can add to your account in order to open it is just a few dollars.

Things to Pay Attention To

 You are on your own. There will be no large departments of risk advisors helping to quantify the downsides on your trades. Nor will there be teams of experienced advisors with years of experience in particular markets to warn of volatility or unexpected ‘black swans’ which can move markets against you. In addition if you are just getting started as a day trader it is probably best to avoid leverage or borrowing. As the old adage goes ‘never invest more than you can afford to lose!’

Yes the gains made by traders on a good day and with the right amount of due diligence can be spectacular and life changing, but so too can the losses so never forget to include a stop loss on any trades you make.

On the upside the advent of mobile trading has indeed democratised money markets. No longer is it only for the rich and powerful. You too can participate in profiting from large market moves. Mobile trading, although it has its unexpected downsides, can be something that rewards the nimble, agile and educated investor not just in the ways and means of making money but also in a far more educational sense – getting a feel for how capital moves and flows in the modern macro economy.

One last thought: if your trades are working for you and the Profit and Loss number is showing a healthy gain, never forget, you don’t have to stick with any trades till they reach the moon – it is never wrong to take a profit! Maybe to pay off some existing debt, or buy the latest mobile phone…

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Lucy Bennett

Lucy Bennett is a Contributing Editor at iLounge. She has been writing about Apple and technology for over six years. Prior to joining iLounge, Lucy worked as a writer for several online publications.