There is an interesting article in the Joongang Daily today on the role of smartphones in stock trading. It argues that the increasing interconnectivity of the world, thanks in large part to smartphones and tablets, played a role in amplifying the stock market mayhem.
One big difference now compared to the 2008 sell-off is that mobile devices are in use by more people to trade stocks. And in Korea, which had been a smartphone laggard, smartphone use has exploded since the iPhone landed in Korea in late 2009.
Mirae Asset Securities and KB Investment and Securities were the first two brokerage firms in Korea to launch stock trading apps in February 2010. Other companies have followed.
“In recent trading through our company, trades made from smart devices accounted for 30 percent of all trades - and was as high as 35 percent at one point,” Cheon said. “Investment patterns have been changing with the wide distribution of smart devices. People are using their smartphone to trade shares, even on their vacations.” Click on the accompanying graphic to see a full size version.