Financial markets have been around for centuries, and they have continually evolved in accessibility to the public with the rise over the decades. With the rise of its accessibility, there has been an alarming amount of millionaires, if not billionaires, made through these financial instruments.
In today’s current financial market, the use of technology is becoming more and more predominant through many different investment firms. What I mean by technology is algorithmic trading. It is becoming widely used not only through the firms but now becoming more and more accessible to the everyday investor.
In this video, I’m going to go over the evolution of financial markets and where algorithmic trading stands today. Without further ado, let’s get straight to it. Welcome if you’re new to the channel. My name is Matt Jimenez. I’m an entrepreneur who has worked with the greatest minds in finance over the last several years, and I’m here to pour into you guys everything that they poured into me.
Now, it’s no secret the rise of financial literacy is up and coming and has progressed over the years. More and more people are finding ways to not only invest their own capital but also take control of their finances. There’s been less trust happening with financial advisers, which was a bit more traditional, and an uprising in people taking control of their own portfolio allocations and how they want to move their money going into the future.
Let’s take a walk through the evolution of financial markets to the everyday investor and/or regular person. In ancient times, financial markets primarily existed solely through a market where people would trade goods and commodities. In the ancient times, markets primarily consisted of local trading centers where merchants and traders exchanged goods and commodities. These market centers were often limited to a select group of individuals and not to the general public.
Now, during the Industrial Revolution in the 18th and 19th centuries, we saw significant advancements in technology and infrastructure, which laid the foundation for modern financial markets as we know it. This was when the stock exchange started to emerge, providing a centralized platform for buying and selling shares within companies. This is where shareholders came about. However, during this time, being able to do this was limited to the very wealthy individuals and still not accessible to the general public. So it’s either you were a wealthy individual that had access to this or you are a financial institution that was able to get access to the markets.
Now, the establishment of formal stock exchanges, such as the London Stock Exchange in 1801 and the New York Stock Exchange in 1807, marked significant milestones in the democratization of financial markets. These exchanges provided a regulatory marketplace where people could trade stocks and other securities due to the regulatory factors that were in place that allowed this to happen.
And then shortly after, in the 20th century, we had the rise of mutual funds. Mutual funds emerged as a way for people to pull their money and invest in a diverse portfolio primarily consisting of stocks and bonds. Mutual funds basically offered the opportunity for everyday investors, the ability to invest with small sums of money and not having to be a wealthy individual or a wealthy institution to dabble in these markets.
Shortly after, there were technological advancements like the internet birthing this digital economy. As we know, in the 20th century, everything basically became revolutionized, and the accessibility of financial markets was as easy as having an internet connection. Online brokerages and trading apps that came out with certain regulatory bodies in place to allow people to just download it through the internet or on your smartphone and easily get access to many variations of financial instruments, whether it be a stock, a crypto, whatever it is. It was as easy as downloading and linking your banking account and being able to effortlessly access all of these different instruments.
Now, that is the simplest form of the evolution of our financial markets. When it comes to investing, there has been a rampant evolution in its awareness and the way we go about it. In the early stages of people being able to access these markets, we would solely depend on fundamental analysis. Basically, if we heard a company was doing X or Y, people would take that data and make a biased decision based on it to make an investment or to pull their investment out.
Shortly after, as charts became more and more modern, people started recognizing different patterns along the charts which birthed technical analysis. And once these people identified a pattern that showed time and time again, they were able to try to predict, based on previous pattern formations, what this pattern would do for this investment that is showing the particular pattern. And this is what birthed the trader, which is still relevant in today’s markets. There’s a lot of people trying to become day traders, and there’s a lot of people that claim to be successful day traders. But there’s one thing that’s certain if we look at the evolution of history: primarily, the wealthy and the institutions are the only people that had access to get into the markets early with this sort of exclusivity to the investment that they were making before the general public got any wind of it.
And now what’s happening is a lot of these wealthy institutions have ditched the manual trading aspect. Remember, the wealthy typically move on the opportunities before the general public. And if you just do a quick Google search on the usability of algorithmic trading in institutions, you will notice that pretty much almost all of them use some form of algorithmic trading or software to help them make their decisions in their trades. And now what’s happening is the general public are starting to see more and more accessibility to software and algorithms that help them trade. But mind you, the wealthy institutions have already made the jump to utilizing these softwares, and they show to be extremely powerful, as I’m using it myself and seeing the power of it in my own portfolio.
Now, the move to these softwares for the general public is becoming more and more prevalent. Now it’s our job to identify if we want to dabble in these softwares and if we did, how can we pick the best one, as more and more will start to pop up and offer XYZ. Now, if you want to know a checklist of things to look for when making that decision, I made two videos going over the exact checklist that I used to pick a winner, and the videos are up above. And if you’re interested in the decision that I’ve made for the software to utilize in my portfolio, the link is down below. So far, I have seen a winning month every single month for the last 3 and a half months. In fact, you could actually document this journey with me where I put $50,000 in this trading software. The link is above. Just go ahead and click that. You could actually watch the whole journey from turning on the software, funding it, and attaching it to my brokerage and see exactly how it works.
Now, you don’t want to get left behind as financial markets are always evolving. And if you’re not using technology, you’re losing to technology, as it is continually improving. And with the improvement, so does the improvement of our lives reflect. Like always, my friends, peace.
To watch the video on YouTube please visit The Evolution of Trading is Moved to Software!