Using Financial Experts Chat as Reliable Market Information

Experts chat

We have known financial sectors are very sensitive to news and information. Most of time rumors, issue, innuendo, gossip or hearsay may affected market. That is why financial sectors need experts opinion in order to clarify those rumors. Opinion from the prominent pundits will make the news and information make sense and elligible. We always see every financial news surely have one or more financial maven accompanying the news anchor commenting on the news.

However, financial news most often takes some time to gather experts opinion. While a split second decision in financial market is a crucial one between profit and loss. Fortunately, we have an option to have financial maven opinion at the time we need, with the experts chat.

What is Experts Chat

Imagine there is a high volatility in the market and there is nobody can comprehend the cause and how to deal with that. Most often financial news, whether television, radio or other news media, they will take more than one hour to confirm the situation to financial aficionados. Meanwhile markets may have gone wild and people may start to panic. Experts chat will provide something that financial news unable to do: experts opinion right at the incident.

One recent example is the circuit breaker system used in China’s stock market starting the 2016. The system is put in place to halt the trading when a stock price go down rapidly to prevent further losses. Financial authority in China deemed it necessary to have a circuit breaker system, in order to inhibit another stock market crash, just like in June 2015. Nevertheless, China Securities Regulatory Commission (CSRC) sets the value lower than usual at 7%.

On the first day of trading in 2015, the trading was halted because index fell to 7%. People started to wonder why is happening. Then two days later, on Wednesday, January 6, in just 30 minutes after market opening, trading in Shanghai and Shenzen stock market was stopped suddenly. This creates a global financial panic, because China is the second largest world’s economy. When something happens in China, it will affect the global finance and economy.

During that time, experts opinion is what the market needs. Global financial news could react accordingly when experts have given their views on the situation.

Why Experts Chat

When news station, either television, radio or other media are interviewing a pundit, they will need a lot of preparations beforehand. They must set up the equipment, audio and video, camera and others. This will add to more time being spent for preparation, resulting the news to deliver a little late. While an experts chat does not need to have that much preparation. Financial pundit that is invited to an experts chat session just need a laptop or computer to be able to join experts chat. When the experts is on the mobile, he can even use his tablets or smartphone.

What a fast and convenient way to gather experts opinion.

Let us go back to what happened in China’s stock market during the first trading week of 2016. Following the sudden halt of trading in China, global market reacted violently to such unknown situation, triggering a bearish market sentiment around the world. After the China’s incident, stock market around the world started to drop consecutively. This happened for more than a week, even Dow Jones Industrial Average (DJIA) also fell 8.2% after the incident that incite panic sell-off from the investors.

During that time, news station need time to prepare a breaking news section. They need more time to prepare experts opinion to respond to that event. Financial news service such as Bloomberg, Wall Street Journal and CNBC took some time before they can contact an expert to provide insight. Meanwhile the market has already started to panic before the expert stated their views.

This is why experts chat can be very convenient way to provide information. Once we have a chat room for our trading group, we can contact experts and invite them to give their opinion regarding the matters. What we need is just a simple setup in our chat room to make it the right place for an expert opinon.

How to Setup Experts Chat

Setting up the chat room to accommodate financial maven contributing their opinion is very simple. This link will give you a complete and simple howto to prepare and setup your experts chat.

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Online Traders need a Trade Chat as their Indispensable Tool

trade chat room service

Financial trading is a business that require abundance of information. A trader should equipped with data and information in order to make a right decision at the right time. Regardless of what market the trade is done, whether stock market, futures, currencies or commodity. Suffice to say, data and information is an ammunition for financial trading to successfully trading.

Recent trend in financial trading is a community trading and algo trading. They both are actually quite similar, because both are using automated tools for their trading activities.The difference is in the people involved in those type of trading. Community trading relies on group of people sharing information, while algo trading relies on complex mathematical formula. Regardless, both of them need a trade chat, because both of them requires an extensive communication.

Community Trading and Trade Chat

Community trading is a trading activity that engage a community to share data and information in a close group or a circle. In the financial trading, the terms used to define trading activity is called social trading. Social trading used trade chat room and online forum heavily as their communication method. Investors, brokers and traders communicate with trade chat to share information, share tips or tricks, and exchange trading strategy. In a more advanced form of social trading, members of community can copy trading position from a respected and renowned trader.

This community trading have also spread to other marketplace, other than financial market. Community formed of people with same interest are often engaged in trading activities among its members. Although such community is not targeted to be a trading community at the first place, but as the community grows, the members of community start to exchange their collection or sell their vintage collection. This is when the trading in the community begin, and this is the time the trade chat will become an indispensable tool for community.

Usually, communites such as a manga or comic communities, video gamer, music fans, and action figure communities are the ones that often upscale trading activity into their their communities. These type of communities are a heavy users of chatroom and forum, and as the community grow in community trading, trade chat usage become imminent.

Trade Chat for Algo Trading

Algo trading is a automated trading, often called as black-box trading, due to heavy reliance of computer. It is a trading that depend on computers that is programmed to follow a defined set of instructions for placing a trade in order to generate profits. The use of computer is aim to increase speed and frequency of trading that is impossible for a human to do.

However, algo trading have a high possibility to administer a high frequency trading, that expose a high risk and controversial.

As trading position is generated by complex mathematical algorithm, the potential of algo trading to entrapped in a high frequency trading is opened. It is because algo trading uses computer analysis to predict a market movement using a set of complex mathematical formula. Based on the instruction in the formula when a certain event occur, the computer will execute a trading position. During a high volatility market, such as what happen last week in a global financial market, computer might execute an excessive trading position, resulting a high frequency trade.

Although market regulators have not declated high frequency trading is illegal, but the actitivy has been under scrutiny by financial authorities around the world. There are some cases which violations occur due to computer decision to make a trading position, such as May 2010 Flash Crash in Dow Jones Industrial Average.

One case of insider trading in September 2013 in Chicago futures market, when a decision made by a Federal Reserve was executed by a trader in Chicago futures market in just 2 miliseconds. While  someone who stood by at Washington after the announcement would take more than 3 miliseconds to inform trader in Chicago using a trade chat. That is a strong indication of algo trading.

The last case was in January 2015, when an exchange operators was fined by SEC for revealing order types enabling algo trader to execute a high frequency trading before other traders.

Trade Chat in Hybrid of Algo Trading and Community Trading

In an advanced form of social trading or community trading, with a copy trading method, there is also a new type of trading. This is a hybrid trading, formed as a combination of community trading and algo trading.

The method is called copy trading. Usually, the method is used in a trading community. When a renowned trader is used as a barometer and an algo trading is employed consecutively by members of the trading community. Actually, this is the type of trading that most prone to a high frequency trading. Since computer can copy other position and execute the same strategy without communication between traders.

Trade chat is needed in this hybrid trading in order to inform all members of community to stop trading before they engage in a risky high frequency trading.

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The 3 Options of Chat Transcript Saving

chat transcript with rumbletalk

We would like to elaborate and sharpen the differences between the 3 types of conversation saving (chat transcript) that are possible with RumbleTalk chat room.

1. No Transcript Saving

Many chat owners prefer that the conversation they conduct with a group will not be saved (the snap-chat like). In this case, every time a user will open the chat, the chat-room will look empty. The conversation will show in the chat (last 50 messages) as long as at least one user will be logged

No archive

Live chat room with no history saving

To prevent any history saving, un-check the 2 check-boxes in the Archive tab (chat settings).

2. Save the Transcript for future or export use

Some customers wish to save their conversation content but not show it to the saved transcript for chat room participants. This is done mainly to allow chat rooms owners to go over the conversation, clean it and export it to html. Than they place the chat on their website. This is done for other users that were not able to participate in a conversation to catch up when they have time. The other motivation is exporting a highly targeted keywords content (written in the chat on a specific subject) and add it to their website for SEO purposes.

Yes and no

To save but not show the chat transcript, check only the first option.

3. Save & Show the Transcript in the chat room

This is the default option with RumbleTalk. When a user sign-in and create his own chat, it will be set to save the full conversation. It will also allow all users participating in the chat to scroll up and see the transcript or history directly in the chat.

Save history and show in chat

To save chat transcript as well as show it in the chat, check both check-boxes.
This option is the most used for most of our customers.

Enjoy using Rumbletalk !

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