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Five Benefits of Technology for Investors to Make Smarter Stock-Buying Decisions

Modern technology transformed who can invest in the stock markets and how to invest in the 21st century. Today, low-income earners are learning to trade on different trading platforms that many experienced, influential investors are trading securities. The difference between the investor classes is knowledge and expertise to make smart stock-buying decisions using strategies, including research and reading current company stock news.

An influential investor or investment manager may use price target sites to monitor the performance of their stocks and read the latest predictions from professional analysts. Suppose a trader invested in Nikola stock last year and wanted to know the most recent NKLA stock forecast, the information is instantly available on these websites. In this example, the stock price was $11.69 per share, as of April 13th, 2021, at 11:00 AM Eastern Time. The stock prediction is an upside of 178.02 percent, with an average target price set at $32.50 and high/low forecasts of $79.00 and $20.00, respectively.

Nine analysts rated the Nikola stock as hold and buy, with most of them giving it hold ratings. Investors seeking a stock to invest in or wanting to purchase additional shares may consider the ratings as important information before making buying decisions. Traders who own shares in the company are steadily holding their stock since June of last year. If an investor has a high stake in the stock, he or she will hold the stock and possibly increase their stakes, wishing for the high prediction.

5 Benefits of Technology for You to Make Better Decisions in Buying Stocks

  • Quick Access to Educational Resources, News, and Financial Reports
  • Faster Speed to Buy and Sell Stocks
  • Transparency of Trading Transactions
  • Technology Feature for Same Day High-Frequency Trading
  • Cloud and Program Trading

Investors are benefiting from modern technologies, including computers, smartphones, and new analytical software developments. They can invest in the stock market on online trading platforms anywhere—while traveling, at home, or in the workplace. Robinhood and E-Trade are a couple of sites with platforms for investors to access educational resources, news, and/or SEC report filings.

These sites do not select the best stocks for you to invest in but make available significant information for the investor to make investment decisions. Research is a must for investors to collect as much data and info about a company stock before they decide to invest. High-performance technology enables investors to buy and sell securities fast and easily. In 2017, it took three days after the trade date to complete a transaction.

Regulations changed the settlement deadline to two days after the trade. In February, the major discussion at the 2021 George Washington University Law School Regulating the Digital Economy Conference, was decreasing the complete cycle to one day or within the same day of the trade date. The speaker noted it will add more benefits by lowering risks regarding open positions and reducing the demands of collateral.

Transparency of trading transactions is improving for retail investors to buy/sell on platforms. Technologies allow these trading sites, such as Robinhood, to settle a stock purchase agreement the same day, sometimes within a few hours or less time. Reputable trading platforms are following the trade model of no commission fees, except over-the-counter (OTC) stocks, which charge a fee for the broker completing the transaction. It is one of the best benefits for all investors trading stocks on Nasdaq and other stock exchanges.

If you are a day trader, the high-frequency trading feature makes computing and communications technologies more powerful in recent years. Mobile trading apps are making it convenient for day traders to trade on-the-go or while working at home or in the office. There is a selection of advanced applications investors can integrate with their existing software.

Cloud technology in the stock markets is emerging and offers gigantic computation, updated analytics, and the latest artificial technology (AI). It can help create an ecosystem that is economical with low overhead costs. While technologies continue to advance with new and enhanced developments, first-time investors must educate themselves before selecting a trading site. Do your due diligence on company stocks before investing your money. Learn the risks and every aspect of the companies, including their financial position, SEC compliance, new, and executive team.

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