The list of trading laments can be long – from the algo-manipulation of order flow to the Central Bankers tight grip on interest rate policy to the inexplicable volatility (or often lack thereof ) to slippage and missed opportunity.
Yes, trading can be downright difficult. But in the spirit of the holiday we have put together:
Six things that every trader can be thankful for this Thanksgiving.
- The Leveled Playing Field
The advances in trading technology have given the individual investor an unprecedented opportunity to be profitable. The digital world has allowed information to be transmitted at ultra-fast speeds. Whether you are in an office in Omaha or on your iPhone in Indianapolis, you now have the ability to trade remotely and have access to tools that were once only available to institutions.
- Reduced Commissions and Fees
Gone are the days of bloated brokerage houses and high commissions. With ease of access and healthy competition, the transaction cost for the individual trader has come way down. Remember that it is important to first factor the “price per trade.” This is how much you’ll pay each time you trade a stock. It is the biggest factor for both individual investors and professional traders. However, paying “little to no” service fees (i.e. $0 inactivity fees) is another key factor to consider.
- A Plethora of Products
You want to trade it? There’s most likely a vehicle. 6,000 plus public companies traded on the NASDAQ and NYSE. 1,500 plus ETFs with more being added each year. Futures and Options contracts on everything from Corn to Carbon Credits to Crude Oil. Forex pairs on every major and minor currency. The list is ever growing, allowing traders to find opportunity in all types of asset classes.
- The 24 Hour Trading World
Trading has long since evolved from the open outcry pits in Chicago and New York with their limited hours of operation. The advent of CME’s Globex system in the 1990s and the emergence of ECN trading for stocks has created a new paradigm of almost 24 hour trading. In addition, the global nature of the Forex market allows US currency traders to participate in the European and Asian sessions.
- Trading Software that Accounts for Global Markets
Considering the interconnectedness of the global markets, traders now also have tools that can analyze and predict the impact the movement in one market has on others.
In the 1980’s, when other traders still had a myopic focus and were hand drawing lines on a chart, Lou Mendelsohn, the founder and CEO of VantagePoint, noticed the dynamic interconnections between related global markets. By integrating them into computerized trading strategies he lead a technical analysis revolution – giving traders an absolutely unprecedented edge.
- Predictive Trading Tools like VantagePoint
No longer do traders need to rely out out-dated information. Advanced technology, such as neural network processes that transform lagging indicators into leading indicators, literally give traders insight into what is coming. These powerful forecasts allow traders to get in to trades earlier, often before others have even recognized the trend change, and staying in winning trades longer, can help to ensure a happy and profitable Thanksgiving. This technology can only be found in VantagePoint and this week only the software is being offered at 50% off retail pricing. Now that is something every trader can be thankful for!