"The Trading Industry in 2022"

– In an increasingly digital and globalized world, it is only natural that the financial industry has also evolved to adapt to the needs of modern investors. Trading has become a very  popular option for those looking to profit through the financial market. In this blog, we will explore how trading is transforming the financial industry and how you can be a part of it –

The trading industry in 2022 continued to be an ever-evolving industry. Besides, with the increasing adoption of financial technology and the digitization of markets, we are likely to see a greater number of trading operations  and mostly through automated trading platforms.

There was also evidence of an increase in the popularity of cryptocurrencies and other forms of digital assets, which for the near future means that it may lead to an increase in trading of these assets. What we mention above is possible as the COVID-19 pandemic allowed for an increase in interest in trading due to the need for social distancing and remote work.

How is the industry doing?

According to Swiset's “Trading and Investment Ecosystem 2022” report, one in 503 people on the planet trade.

There are currently more than 13.9 million traders in the world, of which 760,000 are from South America , and close to 450,000 from Central America.

Latin America is positioned as the second region on the planet with the highest volume of cryptocurrency transactions after the Middle East.

Brazil, Argentina and Colombia sare in the top 20 nations with the highest crypto adoption rate in their markets.

Trading volumes in Latin American countries increased by 10.28% in Q2 2022.

The main issues

Losing money remains one of the main concerns and issues for traders, some of the main reasons that were concluded in the “Trading and Investment Ecosystem 2022” report were:

  • Lack of emotion management.
  • Behavioural biases.
  • Poor risk and capital management
  • Lack of financial education.
  • Lack of organisation and strategy execution.
  • Entering trading for the wrong reasons.

The most popular markets

Trends in 2022 in the trading world:

Automated trading platforms: these use algorithms to analyze the market and make trading decisions rather than manually. This can save time and effort and can be especially useful for those who don’t have time to follow the market closely.

Mobile trading apps: Many platforms offer mobile apps that allow users to trade and follow the market from anywhere. This can be especially useful for those who need to access their investments while on the go.

Cryptocurrency Trading: Cryptocurrencies, such as Bitcoin, have emerged as a form of digital asset that can be traded online. While still volatile and subject to risk, they can be an interesting option for some.

BigData Analytics: The large volumes of data available in the financial market can be analyzed using Big Data techniques to gain insights and make informed investment decisions.

Artificial Intelligence: Artificial intelligence (AI) is beginning to be used in trading and investing to analyze the market and make automated investment decisions. Although still an emerging technology, we are likely to see greater use of AI in the future as it enables:

  • Analyze data efficiently
  • Execute orders
  • Predicting the market
  • Better risk management

The bad reputation of trading

When it comes to trading, countless scandals have arisen, and which to this day continues to generate a lot of uncertainty because many people have had negative experiences  trying to operate in the financial markets. Here are some reasons:

Lack of knowledge: many people enter trading without adequate knowledge of how the financial markets work and without a clear strategy. This can lead to uninformed investment decisions and negative results.

Misleading advertising: There are many companies and individuals promoting trading products and services with misleading advertising and promises of exaggerated profits. This can lead people to enter trading with unrealistic expectations and end up losing money.

Risk: Trading carries a certain level of risk, as the prices of financial assets can fluctuate significantly. This can make some people uncomfortable or even fearful of trading the markets.

Information overload: It is important to keep in mind that not all trading information is of quality and some of the advice and strategies offered may be misleading or even dangerous.

Thus, the trading industry is projected for the coming year as an industry that will continue to evolve and offer new opportunities as technology and regulations increase. However, it is important to remember that trading requires risk management and education as well as  seeking reliable information is vital to making informed decisions before trading in the financial markets.

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Manuela Palacio

Manuela Palacio

Ops and Marketing Intern at Swiset