The Evolution of Day Trading
Day Trading: Almost 150 Years Old
Traces of day trading can be detected back to as early as the late 1800’s. When the telegraph was invented, the stock market used the technology to create the first ticker tape. Ticker tapes then made it easy to communicate information and developments about transactions brokers were making on the stock floor. Brokers would use this information to make educated decisions in the stock market during the day. And during these times there were many barriers to entry when it came to the stock market, so there were not a lot of day traders. Let’s find out how the evolution of day trading played out over the more recent years.
Evening the Playing Field
In the year of 1971, the National Association of Securities Dealers created an electronic communication network (ECN). An ECN is a computer system that matches buyers and sellers for stocks in the stock market. It also allows for trade to take place outside of traditional or standard trading hours, so investors have 24/7 news to react to. ECN’s introduced ease of use and timely matched sellers and buyers, making the process a lot easier to participate in.
In 1997, online brokers launched services that made it even easier for investors, and ordinary people, to invest in the stock market. Individuals now had access to stock prices, trading activities and trends, just an overall live insight on the market. Accessibility of the stock market and the ability to buy and sell, allowed day trading to rise in popularity. This made it possible for ordinary people to participate.
Welcome to the 2000’s
This is when day trading started to be taken more seriously. We can go on the internet and look up Yahoo Finance and find stock prices updated by the second. We can access updated stock information, receive financial news about companies, and upcoming developments on the market like IPO’s. There are plenty of trading apps and websites. Today, day trading is a popular activity and almost seen as a commonplace in the financial markets. It has also risen in popularity amongst common people who do not work in the financial space. With the rise in technology and online trading applications, the evolution of day trading has happened quickly. Day trading has now become something everyone with a device connected to the internet can participate in.
If you are a day trader, find out how Simply Flows can help you evolve.