We live in an age where technology dominates our experiences. From smart phones to smart TV’s, we have apps that promise to make our lives easier in every imaginable way. When it comes to financial markets, we have come a long way from the open outcry system of stock market trading floors, you can now trade a mind-boggling array of instruments across multiple continents – all from your smart phone while sitting in the comfort of your armchair.
While the experience is in many ways remarkable, the process of trading is not only a mechanical one, it comes with a very large emotional component. Despite what an app might be able to tell you, it can’t relate to how a trading position makes you feel. This part of trading requires a little human touch. Trading systems are designed to take the human emotion out of trading. Unfortunately, once your hard-earned money has been put into the market based on the decisions of this system, it is impossible not to feel emotional. It is at this point that you start to be influenced by the two strongest driving forces in stock markets, greed and fear.
When these emotions flare up, no app or shiny system can help – this is when you need the human touch. Stock markets have a habit of throwing curve balls. It’s when these come your way that it helps to speak with someone who has faced them before. When it comes to trading markets, experience is your most valuable asset; the database built over time that sits deep in your emotional psyche is what allows you to override the trading system and make those “gut feel” decisions. Experience is gained over time, and often requires bumping one’s head a few times.
We at the dealing desk at Sharenet have over 35 years of trading experience between us, from 9/11 and Lehman Brothers to the sub-prime mortgage bubble and Brexit, we have seen quite a bit. Being able to speak with your broker when you feel uncertain is a service that we feel is vital in such an uncertain world. We also trade local and global markets full-time, so being able to give us a call to make sure you have all the necessary information before executing your trade can only help.
The Sharenet dealing desk is also constantly watching markets in order to identify opportunities for our clients to make money: we do that because it’s our job, and we love what we do.
Call the Sharenet dealing desk on 021 700 4800 to discuss your portfolio, and see how we can assist you in making your trading life easier.
Neville has been a full-time client portfolio manager since 2002. He has completed a Unisa degree in Economics, The Registered Persons Exams (RPE’s), JSE Equity Traders Exam, RE5 (representative), RE1 (Key Individual) and RE3 (Hedge Funds). He has traded in numerous dealing rooms across South Africa, and has 16 year’s experience, his primary focus is on short-term trading strategies using derivative instruments.