Years ago, if you wanted to trade foreign currencies, stocks and shares, you’d have to go to a dedicated trading floor, or call up your broker and go through a lengthy process. Then came the internet, and all manner of browser-based platforms that allowed you to trade from the comfort of your own home. Now, however, there are smartphone apps that mean that you can make million dollar deals anywhere you want, and they’re encouraging a whole new generation of people to get involved in financial speculation.
The basic concept of financial trading is pretty simple. You decide whether you think a currency, or some sort of asset like gold, is going to go up or down in value, and then buy or sell it, earning a profit if your prediction is correct. There can be all manner of different ways of doing this, but the principle of ‘buy low and sell’ high is always the same, as is the reverse.
The platform is simply the application that lets you see what prices are doing, how patterns are shaping up, and make trades. Platforms are the hub of all your market activity, and you can now download one onto your smartphone or tablet. The most popular platforms such as the MetaTrader 4 app is available on both iOS and Android.
What this means is that you now require very little to get started, and many more people will be inclined to trade casually while on the go. It also means that experienced traders can always keep themselves updated on economic news, prices, and how their positions are performing.
One of the most common ways in which people work out which way prices are going to move is by doing what is called technical analysis. This means looking at the patterns that a price chart creates, and interpreting them in a variety of ways. This is probably the only drawback of using a mobile application to trade on; it’s difficult to navigate graphs on a small screen. Of course, fundamental analysis, which involves interpreting news, is still entirely possible on nothing more than a phone.
When trading forex, you don’t access the markets directly. Instead, you use a broker, which is a company that handles your account, and acts on your behalf. What’s great is that a lot of brokers now offer demo accounts, so you can try out trading with virtual money on your phone before you start actually trying to make your own money.
It’s very important to remember that forex is a type of investment, and that means you can lose money as well as make it. If you’re looking for a casual way of getting into the financial markets however, mobile trading could well be for you, just remember to do plenty of research beforehand.
