Trading with the Crowd
by: Yoni Assia
Twitter: Yoni Assia
For the past few decades trading was a profession for the chosen and privileged few, however thanks to technology the financial markets are now more accessible than ever before. Finance today can become better, having mass market appeal empowering individuals to take control of their own financial decisions. The world is becoming smaller, socially connected, transparent, and based on trust (rather than prices), therefore finance will ultimately adapt and evolve becoming social with lower barriers to entry. As the world becomes smaller, everything moves faster, social finance accelerates the formation and exchange of finance; raising money faster, collaborating and inventing faster, developing and launching faster and creating new financial models faster. Inevitably social finance is going to be the future of finance, it’s just a matter of product.
Since 2007 this product has emerged, social trading; a new wave of trading activity erupting alongside the established banks. Social trading allows all members of an investment community to help one another rather than compete against one another in a cutthroat marketplace. As supported by data from MIT, social trading influenced by the wisdom of the crowds allows individuals within a transparent investment community to make better investment decisions, as well as bringing forth increasing levels of accountability that never previously existed.
By following people’s trades on a network, you are building a smart crowd that is curating the financial news and financial investments into your own personalized social investment feed. By having their portfolio copied by other traders, traders are not only influencing the investment decisions of their fellow peers, they are becoming fund managers from the comfort of their own home. Anyone today can become a trader as well as a financial leader.
Today, the digital natives expect a digital experience. Today the fintech revolution is now well and truly a global phenomena, experiencing an unprecedented convergence between traditional institutions and digital financial pioneers.
Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this initial abstract are invited to share and like it so that it may be featured in a longer version.