Online trading – Forex and CFD investments, have gained a huge popularity in the recent years, specifically among people with limited knowledge of the world. This has been made possible thanks to all technological innovations that happened over the recent years.
Importance of Financial Technology
Financial Technology or FinTech is what has helped beginners participate in the trading processes on the financial markets. The innovations in it have made software solutions and trading platforms user-friendly, and well-developed partners like Forex robots and Forex brokers have integrated the latest generation of technology.
But despite the development of the available tech, people’s contribution has not been left out. Auto-trading systems like the Fintech Limited Forex robot and Forex broker platforms have made sure to feature people’s input into their services. This is the so-called ‘Wisdom of the Crowd’.
Why Is Investors’ Contribution Important?
Even though supply and demand are the two main forces that drive markets in different directions, people are the ones who drive these forces. This implies that their trading and consumer decisions actually have a significant influence on the prices of the different assets, goods, and services.
But Why Wisdom?
Sometimes, the cumulative wisdom of a certain group of people can be significantly greater than that of the smartest individuals in that group. This could lead to much better decisions being made, more accurate, more fruitful, regardless of how smarter some of the individuals could be.
That is why developers of software solutions for online trading of Forex and CFDs have decided to implement this exact same wisdom into their platforms. It can have a great influence over the trading processes because the organized action of a crowd can tip the scales of the markets in one or the other direction.
How Is the Wisdom of the Crowd Implemented?
Forex brokers and Forex robots like the Fintech Limited software solution for automated investments have established one very important feature into their platforms:
- Traders’ Sentiment – also known as Traders’ Choice or Investors’ Sentiment, this feature illustrates the exact way in which your fellow investors on the same platform have decided to place their investments. They are also a close representation of whether the market is bullish or bearish. Many people decide to base their trading decision on this exact feature, knowing that sometimes the crowd is more right in its forecast than the experts in it individually.
This indicator, the Traders’ Sentiment, representing the wisdom of the crowd on the platform of your choosing, is used by both other investors and the robot, if you are using a software, to make analyses and to make forecasts.
Should You Trust the Wisdom of the Crowd?
Systems for autopilot investments like the popular Fintech Limited have been proven to effectively incorporate the wisdom of the crowd onto their platforms. Users often take this indicator into consideration. But what is more important, auto-trading systems, when running their operations and making analyses in the background, feature it as a major factor in the process. This an indicator that has significantly has improved the accuracy of various Forex robots over the years.
You don’t need to trust the Traders’ Sentiment completely in order to make good use of it. It has been proven to be an advantageous feature for any robot or broker platform, beneficial for their clients. So the next time you decide to open a trading account with a Forex robot or a broker, make sure they provide this feature on their platform.