During a hearing in the US House Committee on Financial Services, advisors raised questions on the effect of social media, short-sellers, and retail investors in the event of a collision in the market. Gary Gensler, Chairman, Securities, and Exchange Commission, came with solid arguments and justifications on the GameStop scandal. Risks associated with trading systems have been largely present during recent times. The high number of internet users has also contributed to the role social media is playing. Scalping that is short selling and transparency of the financial markets has also impacted trading strategies.
Gary Gensler notes that investment apps have grown in recent times, creating a channel for the entry of new traders and investors. Access to smartphones by new traders has also led to increased smartphone trading through gamification. It has made it easier for those learning the venture to acquire some knowledge on the same. However, Online Trading Academy is looking to establish a regulatory notice that will allow learners to seek additional information on the impacts and use of gamification. It will include new regulations that will give the students the much-needed information.
In addition, the main focus of Online Trading Academy will be risk management. First, the Academy seeks to equip the learners with the rules, relevant education materials, and methodologies with defined strategies and steps. It is of assistance to students in a reasonable approach to risk management and averts them whenever necessary. It will also help them avoid losses and become more profitable in the trading process. CliK, the OTA trading platform, has solid foundations in risk management. Depending on the methodology that retail traders and investors employ, most end up losing money. Most inexperienced traders and investors end up following market trends. However, experienced traders make most of the market trends and make profitable trades.
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