With the evolution of mobile technology, it comes as no surprise that our smartphones now rival computers in terms of power and speed, leading to drastic changes in how we use our various devices. Mobile trading has become very popular over the last few years, giving investors the freedom to trade the stock markets wherever they are, whenever they want to.
After all, it’s quite simple to use your phone to trade. All it takes is to pick a platform from the best platforms for stock trading, create an account, and learn how to use the platform with a demo account. When you’re ready to start trading, you can do so from the palm of your hand.
What should you look for in a smartphone to better use trading apps?
Because an important aspect of trading is getting the timing right, you need to use a smartphone that is designed to help you to fully take advantage of smartphone-based stock trading platforms. After all, when it comes to mobile trading, not all smartphones are equal – older smartphones, and smartphones from cheaper suppliers, may not be able to meet the needs of trading.
That’s why you need to be sure that yours is up to the task.
In addition to being sure that your phone works with the mobile trading software offered by your broker, you need to have a smartphone that has a large screen, a good display, a long battery life, and a fast processor.
Is mobile trading a good fit for you?
Trading from a smartphone has a lot of advantages (the most important one being to be able to freely trade wherever you are), but it isn’t necessarily for everyone. Having 24-hour instant access to the financial markets can very easily lead to addiction, which can often lead to over-trading.
Over-trading is part of what’s called emotional trading, which can negatively impact your trading – especially when you can access the markets whenever you want. That’s why you need to be aware of how emotional impulses manifest themselves in your trading, and how you can counter them with an appropriate response to avoid being influenced by your emotions.
A final word
Just because the markets are at your fingertips, doesn’t mean you have to spend every waking moment trading. Having an investment plan with trading psychology elements, as well as strict money and risk management rules will help you prevent over-trading and take better advantage of smartphone trading apps.
What are your thoughts on mobile trading? Do you mainly trade on mobile or do you use your mobile phone when you have no other options?