There’s a big debate in the trading world now about how a trader’s tech setup can make or break the experience. On the one hand, technology is seen by some as a way to improve your trading approach and potentially improve your profits. For others, though, tech is just a means to an end – and it’s the underlying skill or luck that matters. This blog post will explore these claims.
Yes: tech can make or break
It’s undoubtedly true that technology can, in some cases, make a trader’s life easier. For example, having a variety of screens can allow a trader to look at more than one price chart view at once. So they can cross-compare a week view and a minute view to become as well-informed as possible about how their chosen asset class is performing before they make their next trading decision.
And it’s also the case that tech can teach new skills – even without the involvement of kit, or at least kit beyond a basic computer. The Internet is full of guides on how to improve your trading skills. Using a well-known website such as ForexTraders to learn forex trading is one way to do this and is a prime example of how technology can be a vehicle for investing in your trading career.
No: it’s the skill or luck that matters
But there’s also an argument that skill is more important when it comes to trading. Some would say that technology can have a problematic effect on a trader’s behavior because it can make them feel that the tech is doing the work for them and that they don’t need to do anything to earn revenue. The rise in copy trading, in which a trader can use tech to mirror another trader’s portfolio, is perhaps one example of how tech can potentially benefit a trader but also lull them into a false sense of security. Ultimately, it’s the case that you still need to be skilled, experienced, or lucky to do well at trading, whether you’re trading yourself or choosing someone to copy.
And tech can be expensive, too. A super-powered computer with multiple monitors can easily cost thousands of dollars, if not tens of thousands; your trading margins would need to be relatively high over a period to recoup the cost.
Overall, there’s no correct answer to whether a particular tech setup can make a difference to a trader’s life and potential outcomes. It’s up to the individual trader to assess the pros and cons of having a tech-focused approach to trading. While it’s clear that some benefits are possible from having a strong tech setup, it’s also the case that the underlying skillsets required still matter hugely. Perhaps, as with many things, the goal should be about balancing the two – and using them to inform the other rather than seeing them as separate aims or approaches.