How trading is changing in light of modern technologies and conditions

In today's world, everything is changing rapidly. Technological advances have touched many areas of activity, including trading.

For this reason, many stock trading strategies simply stop working, and technical analysis indicators are losing their effectiveness.

While the fundamental market laws still apply, and increasing volumes confirm a trend, there are also fundamental differences between how the market functioned previously and how it operates now.

This is especially true for stock exchange and forex trading, where the changes are most noticeable.

, how can you overcome this situation when proven trading strategies begin to yield losses?

First, let's look at what has changed over the last 20-30 years in terms of technology and organization.

•    Speed ​​of information emergence – Now, news appears almost instantly and simultaneously in every corner of the globe. Traders learn about the news simultaneously and begin opening trades in its direction.

This leads to the trend moving more sharply and at the same time such movements are shorter.

• Social trading - a lot of trades are copied by other traders, which often leads to a sharp increase in supply or demand.

• Algorithmic trading - robots make decisions faster than regular investors. In some strategies, this has become a real problem: a person simply cannot keep up with the scripts and, as a result, opens trades too late.

• Market manipulation - if previously there were only isolated cases of market manipulation, now this phenomenon has acquired enormous proportions.

Thanks to the Internet, it is relatively easy to form a positive or negative opinion about a certain product and thereby change the trend. Not to mention fake news.

Therefore, there are practically no assets left that can be successfully used in long-term strategies.

Stock market strategies based on the current situation

So, given the realities of the modern market, what can you do to avoid mistakes that could lead to losses?

First and foremost, learn to monitor prices and analyze their behavior. Try to distinguish between short-term and long-term trends and close trades promptly.

When trading on the news, catch the beginning of a trend and close the trade as quickly as possible, without waiting for the correction to reverse.

When scalping, automate the process of opening and closing trades as much as possible using the trading platform and third-party scripts.

And most importantly, trade more, even on demo or cent accounts . Trading on the stock exchange is like driving a car: the more you drive, the more confident you become.