Trading technology has advanced at a blistering pace over the past few decades, utterly transforming markets in ways once unimaginable. Technological innovation has taken the industry far beyond the noisy trading pits to a fluid digital landscape underpinned by advanced computing. These radical shifts have coincided with — and arguably enabled — broader financial democratization waves, bringing investing and trading possibilities once reserved only for institutional power players within reach of the public.
Few people have witnessed these seismic shifts unfolding from front-row seats for as long as lifelong trader Zak Westphal. As CEO of the platform StocksToTrade, Zak has consistently positioned himself along the industry’s leading edge by building innovative tools to empower independent traders.
We recently sat down with Zak to capture some of his unique perspectives on accelerating advancement-altering trading. We discussed his memories of the more basic early days and explored pioneering innovations that, in his view, have changed the game. Zak also explained how StocksToTrade’s features drive the next generation of retail trading. And with a balanced mix of enthusiasm and skepticism, he shared his thoughts on what the increased influence of artificial intelligence may look like in the years ahead.
Can you walk us through some of the significant ways trading platforms and toolsets have evolved since you first entered the industry?
When I first began trading years ago, everything was still manual and constrained compared to now. Back then, most individual traders were tracking trades by hand using spreadsheets. It was tedious work.
Connectivity was also limited. The internet existed but wasn’t mainstream yet. Getting up-to-the-second market data was expensive and only for big firms. US retail traders were looking at hours-old numbers. The analysis software we had access to was bare bones, too. Meanwhile, advanced algorithmic trading was exclusive to institutions.
Today, trading is fully electronic and inclusive. Dynamic data streams to anyone instantly via the web. Retail investors can now leverage the same kind of powerful tools and platforms that used to be proprietary to hedge funds. The playing field has been leveled between robust data, slick software, and automation tech. It’s a night and day difference from the early spreadsheet days. The existing barriers have fallen away through technology getting better and more accessible.
What key innovations in trading technology stand out most to you?
No single tech breakthrough instantly reshaped markets overnight. It was an evolution of progress compounding. But a few significant milestones stand out that opened things up.
Obviously, the internet itself was a massive game-changer because it enabled electronic trading. Before that, retail trading just wasn’t viable. The web made it possible. Then, online brokerages entering let individuals easily open accounts and directly access markets. By dropping commissions and minimums, they made self-directed trading affordable.
Real-time data feeds were another shift — letting traders react to current conditions rather than old numbers. Strategies based on live data became possible. Advanced charting software visualizes that data matters, too. Seeing visually helps decode patterns faster. And recently, algorithmic trading has become feasible for retail via simplified platforms. Automating system rules has unlocked all kinds of new potential.
So, it was an accumulation of technologies boosting access, information, analysis, and automation that ultimately transformed the game—each milestone built on the others.
Can you explain StocksToTrade’s Oracle Scanner and IRIS tools?
At StocksToTrade, we’re obsessed with building the most capable yet easy-to-use trading tools out there. Oracle Scanner and our IRIS technology are two prime examples.
In basic terms, Oracle automates the tedious hunting process. Traders must regularly scan thousands of stocks for high-potential trade setups. It uses complex codes and filtering to pinpoint opportunities that have historically proven profitable rapidly. Each day, Oracle surfaces about 15 stocks exhibiting the ideal conditions for traders to research further.
IRIS takes things a step further into predictive analysis. It uses artificial intelligence to examine mountains of historical data, uncovering subtle patterns that tend to foreshadow big future price swings. IRIS gets trained on what those giveaway clues look like. It then scans current market activity to identify those early clues suggesting the stock is lining up for a major upward or downward move soon. This gives traders an informational edge to get positioned ahead of time.
Based on the rapid pace of advancement so far, what role and impact do you envision next-generation technology like artificial intelligence and machine learning having on trading in the years ahead? Do you think pivotal financial decisions will remain a human activity?
There’s no doubt AI and algorithms will become more integral to trading in the coming years. We already see tools leveraging machine learning to uncover opportunities and automate analysis. This is just the beginning.
AI has the ability to process mountains of data extremely quickly and surface the most insightful nuggets. It can handle complexity at speeds impractical for humans. So, AI will provide traders with helpful decision support and continually improve by learning from experience.
However, AI cannot fully stand in for human judgment and intuition. Markets often throw curveballs that baffle even advanced models. Subtle psychological shifts driving volatility are hard to capture with data. So, a seasoned human perspective will remain vital – especially when navigating uncertainty.
The ideal future is combining strengths — using AI’s number crunching with human reasoning and discretion. Together, they are more powerful and overcome individual limitations. AI augments people rather than replaces them. So, pivotal financial decisions will remain a human activity buoyed by technological collaboration.
Final Word
And so goes the constantly accelerating technology cycle — each advancement unlocking the next wave of innovation in a feedback loop of exponential progress. What was once a bleeding edge rapidly became standard fare. We can only imagine how primitive the current trading landscape may seem in another decade.
Yet, for all the disruption, the future remains bright for traders who stay nimble and open-minded. That includes being willing to blend tried and true principles with cutting-edge tools as they emerge. The markets gracefully endure technological shifts, creating new opportunities for those keen to adapt.
