Things are much different today than the way shares were traded prior to the invention of the internet; however, technology has made share trading far easier and that in turn has led to increased trading volumes, which has created far more opportunities. More and more companies have listed to take advantage of the new conditions and each new technological advance has brought forth new growth.
These days, an individual may present a share order to their broker through the Internet, email, fax, or phone. When the order is received, it is no longer passed to a broker at the floor of the exchange who shouts out the order. Instead, the order is entered into the ASX's computer, which electronically matches up the different buyers and sellers. By 1990 the ASX had completely phased out the old trading floor system and replaced it with a computerised equivalent, the Stock Exchange Automated Trading System, known as (what else) SEATS.
Before the order is placed, the broker will have a spread of information available on his trading screen. A glance will reveal the range of bid and ask prices and at what price the last trade occurred. Moreover, it can show how many shares are on offer at each price. This depth of market information accurately portrays the balance of supply and demand for each share. This information can be invaluable in assessing the probable future direction of the share price. Fortunately for individual investors and traders, this market depth information is now commonly available through the Internet. In fact, the Internet allows traders all over the world to gain live market information and trade from anywhere at anytime. Times have certainly changed!
Nowadays, its possible to trade global stock markets online from anywhere in the world, at the push of a button. At Trading Pursuits, our favourite stock market to trade is the US market because of its depth, breadth and immense liquidity.
To find out more about Trading Pursuits' strategies, attend one of our FREE 2 hour stock market education seminars.