Trading the financial markets is a fierce competition. Did you know that the global FX markets see 25 times more liquidity than the equities markets? And guess how much trading volume is produced daily?
More than $5 trillion.
If you’re a forex trader, it’s vital to stay on top of trends to keep your shirt, your shoes and — more importantly — your money. So, here’s what you need to watch out for in the coming years.
Trading bots are getting better
If you teach a robot the same strategy you use, there’s a high chance he’ll make better trades than you. Bots now dominate the FX markets — and the biggest banks in the world rely on them to reap profit
In December 2018, The Wall Street Journal reported that “85% of trading is on autopilot — controlled by machines, models, or passive investing formulas.” This has culminated in a massive sea of trades that move in unison and make decisions in a blink of an eye.
Of course, bots eliminate the chance of human error, are extremely fast and won’t mess up a trade because you got nervous. So how do non-robots (yes, you) compete? If you can’t beat them, why not try programming trading algorithms of your own? Now is the perfect time to learn how to build up your own algorithmic trading system.
Nevertheless, humans are still better at reading and interpreting the news. For example, ongoing Brexit headlines have been confusing for forex bots, making it difficult for them to predict price movements.
Meanwhile, humans have an easier time making clear decisions in response to news developments. Even this disparity is likely to change in the years ahead as artificial intelligence becomes more sophisticated.
So, where do cryptocurrencies stand?
In 2012, cryptocurrencies were like beanie babies: harmless curiosities that made a handful of people rich. But when the Winklevoss twins became Bitcoin billionaires, among other developments in the crypto-sphere in 2017 and 2018, the world did a double-take.
However, unless you’ve been hiding under a rock, it’s no secret that the markets have somehow hit a huge wall and one can only hope that the race to pair bitcoin with as many fiat trading pairs, will continue.
Should all this activity take place, cryptocurrency trading pairs will shake the foreign exchange markets. And at TIOmarkets, traders can seamlessly combine crypto and forex.
We’ve developed an advanced trading platform that combines the best of forex trading and cryptocurrencies into one. If you want to get in tune with today’s rapidly changing marketplace, TIOmarkets is the place to do it. What are you waiting for? Sign up for a trading account now.