3 Ways the Future Will Change Stock Trading As You Know It

by Andrew McGuinness     Jul 16, 2019

Stock different was very different of a ball game two decades ago. With the rise of the internet and the rapid advancements in technology over the last years, stock trading has been evolving for a while now. In the face of how our current state of technology is advancing, especially with the advent of blockchain technology and more, one should look into the future to anticipate how stock trading, one of the most essential types of trading, will change in the future. The principles of trading 101 will always be valid we believe, but the way they apply might change radically.

One thing to consider is the way the economy is changing and growing. What only the extremely rich have today is going to be the norm for the middle class in 20 years or so. Artificial intelligence might be the next big financial advisor for anyone to have, automating the investment process entirely. It might even be up to teach a program of artificial intelligence your own trading 101 knowledge so they can do the work that you do, for you.

1) Digital analysts and assistants

This one is only a matter of time before it reaches the level of sophistication required to be of use to investors and traders. The amount of data available on the internet, especially in the context of finance, is increasing by the day and it’s so much in fact that it’s humanly impossible to analyze all of it.

Having an artificial analyst to help find investing and trading opportunities for you is going to be a major change to the stock trading markets. Imagine having a virtual assistant ala Jarvis from Iron Man whom you can instruct to transact on your behalf. This will put many analysts out of business, but will definitely be a boon to the end-user – in this case, yourself.

2) Stock hybrids are going to be a thing

Derivative shares of the same company are already a thing that the finance world has been dreaming of. For instance, take an oil and gas company – let’s say they begin a risky project in renewable energy. This project could be differentiated by having a new class of shares which only account for that project and not the whole company. There could be entire new indexes and funds built around derivative shares, for instance a new S&P 500 for only high risk shares of companies.

This will allow for far more specific, customized and diverse portfolios down the line. People could build carbon-free portfolios or portfolios around specific types of engineering projects. They could even build investments around a company’s activities in certain countries abroad.

3) Capital funding will find new channels

Crowdfunding has already become a very large thing, with many pros and cons popping up all over the place. Platforms such as Indiegogo, Kickstarter and GoFundMe have risen to ridiculous levels of popularity in the last few years to give startups access to capital they would otherwise have never had the opportunity to gain otherwise. Unfortunately, crowdfunding has also come with a lot of fraud and security problems.

Another way the future of stock trading will change is the way companies will approach IPOs. With ICOs becoming a thing now, it wouldn’t come as a surprise if startups did their S-1 Registration Forms via video sharing sites such as YouTube. If they were granted legitimacy by something like the NASDAQ, you may be seeing a new wave of startups going public and gaining attention through the use of video instead of the traditional TV routes that companies still take today.

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