5 Research Widgets Every Trading Platform Needs
As you’ve may have noticed already, online trading jumped during the pandemic, as it rode the momentum of the work-from-home movement and travel restrictions, and it was fueled even more by the stock market rally.
Now that the economy is slowing and the outlook for markets is not too rosy, many traders are thinking about cashing out. As market volatility soars, Trading Platforms experience a decline in user engagement and increase in churn rate. As online brokers look for innovative ways to support their users throughout today’s volatile markets, the answer might be easier than they think.
Why is there less trading now? Are traders burned by the volatility? Do they feel helpless, not knowing what to do, as yesterday’s winning stocks turn to dust? Do they prefer to stick with broad indexes, trying to outlast the downturn or just not knowing what else to do, apart from running away from the markets? Probably all that is true, and more. But Trading Platforms can help their users to pass through this thorny patch relatively unscathed.
When there’s a need, there’s a way, and in recent years the way is usually some tech solution. Trading Platforms can help their traders learn about overseas and niche markets, or close to home trades that aren’t getting much analyst attention. There are myriad opportunities, overlooked by markets, that are just a few clicks away. You can help traders discover these options without overstretching your budget - by incorporating a few simple, but very helpful widgets. Let them find under-the-radar stocks, easily reach companies’ financial data and research their actual performance, sans the distraction of market buzz. Educated searches lead to meaningful choices that lead to profitable trades - and all this will converge to traders’ satisfaction with the platform.
True, many Trading Platforms provide their users with online tools, but they are mostly focused on technical patterns and stock price momentum. However, technical charts alone cannot support an investment decision, while price is often moved by trends, buzz or short interest and doesn’t reflect the stock’s real value.
So what are the essential tools a trader should have in their ‘weapons arsenal’, that can be provided by the Trading Platform?
1. Refined and distilled financial data summary.
Your online traders are constantly bombarded with too much information - mostly too complex, in many cases irrelevant, and always time consuming. Trading Platforms can help users cut straight to the point, getting the latest data on the quality of the companies’ finances. Let them filter out the noise with a simple fundamentals’ summary widget:
2. Comparison of the company’s financials versus its peers.
No company operates alone in its market; there are always companies from the same industry for comparison. Your traders would love to be able to see how their chosen stocks compare to the peer group in terms of fundamental data. It’s also a great and easy way for investors to discover more stocks in their familiar (or a new) sector. For example, in this screenshot you can see that fundamentals-wise, Match Group is an advisable buy, while Google’s stock is a “hold” and IAC is expected to underperform:
3. Stock price versus price history, peer group comparison.
The price of the stock by itself doesn’t tell traders much except maybe for its own current trajectory. But when the price is checked in combination with earnings history and projections, and compared to these parameters at the company’s peers, it can be used as an important decision making data-point. This way your traders can see whether their stock is expensive comparing to its peers and to its own price history:
Let your traders watch their trade’s peers or similarly rated companies, all in one place, including changes in their fundamentals and price ratios.
5. Google Trends.
Let your traders see how much interest there is worldwide in the stocks they are exploring. Maybe they would be encouraged to know that they are not alone in their quest for information on a specific company. Or the opposite is true: they may be happy to find a niche almost no one has thought about. Whichever is the case, used with other research and criteria, Google Trends can enhance users’ experience with searching and analyzing their trades.
Your traders, same as most Earth inhabitants, live in a state of information overload. Technology has created the data chaos, and technology can help. You can use simple, but powerful data tools that can help traders cut through the noise - and analytics like these can be integrated into your platform using flexible delivery channels such as widgets, APIs, etc. Help your user find tradable opportunities, compare data points and analyze information while filtering out the stream of overwhelming information - and watch your engagement rates increase.