The Online Investing AI Blog

Many people think that gold is expensive now, that it has gone from $400 per ounce to $1,100, as of this writing. That is an increase of nearly 3 times. However, if we consider the historical price of gold, it does not seem very expensive.

Here’s an example. This chart shows the price of gold in relation to the S&P 500 index. The S&P has risen from a recent low of 683 in 2009, to 1,160 today.  However, gold has appreciated much more than the S&P since 2001, when the current gold trend began.

S&P 500 Divided by Gold Price

What does this tell us about the future of gold?

Read more…

Investing, Money, Success, US Economy boom, bubble, bust, commodities, education, financial responsibility, gold, Investing, real estate, silver, Success

I’m going to list ten people. They have at least two things in common.

I’ll spot you the first common trait: they’re all billionaires.

1. Sir Richard Branson

2. Kirk Kerkorian

3. Bill Gates

4. Paul Allen

5. Steve Jobs

6. Larry Ellison

7. Michael Dell

8. David Geffen

9. The Ralph Lauren

10. Sheldon Adelson

So, what common thread ties all these guys together? Give up?

Read more…

Business Strategy, Investing, Money, Online Investing AI, Success billionaires, drop outs, education, Money, rich, school, traits for success, wealth

I read Leonard Mlodinow’s The Drunkard’s Walk last week, and it is the best book I have read in a long time. It is masterful because it effectively explains boring and tricky subjects such as statistics, randomness and probabilities. The icing on the cake is Leonard’s incredibly clear and compelling style. The prose is peppered with various subtle jokes and references that were absolutely hilarious.

Here’s an example:

One day, not long ago my son Alexei came home and announced the grade on his most recent English essay. He had received a 93….I know him to be capable of better, I would have added that this grade was evidence that if he put in a little effort, he could score even higher next time….I considered the grade of 93 to be a shocking underestimation of the quality of the essay….In fact, the above episode is entirely about me, for it was I who wrote Alexei’s essay.

Read more…

Great Books, Investing books, drunkards walk, education, Investing, probability, statistics

In case you don't get the reference. This is The Proclaimers... who wrote (I'm Gonna Be) 500 Miles.

This is our 500th post.

We originally conceived the idea of our blog to be something beyond the same old acronym-encrusted, buzzword-bloated company blog. You know the:  “We have Product X in beta. We are hoping to improve synergies among R and D and marketing to output a product that meets customer criteria.”

That kind of crap.

We wanted our blog to start a conversation with people while we worked on our Automated Trading systems. And while we’d love to make everyone a client, we don’t care if you eventually decide to become a customer or not.

Because our real mission is to help people become financially free. There’s a lot of ways to get there. But education is the most important. We’d like to create Automated Trading systems that makes everyone rich, but they still can’t make people wealthy. That’s up to the individual.

Read more…

Online Investing AI 500 posts, education, financial freedom, Investing, Online Investing AI, wealth, wealth building

It’s hard to make definite predictions how the winds of economic crisis will change the direction of investing trends, but it’s sure that how we invest yesterday will not be the way we trade tomorrow.

Economic and technological innovations are like swirling jitterbug dancers; they spin each other around in wild patterns. These moves are becoming more interrelated. The internet revolution started a chain of economic events. The current economic downturn is changing how we use technology, as well.

One of these twists or turns could make an Automated Trading revolution more probable. In fact, there are a number of factors in the current economic and technological environment that makes this scenario more likely.

Read more…

Accelerating Technology, Automated Trading, Internet, Investing, Money, Online Investing AI Automated Trading, economic trends, education, Investing, technology, trading, trends

Ever feel like you are working in a factory, like a robot? There is a good reason for it. The American school system was developed during this century to create a large supply of factory workers. These workers were given repetitive, mindless work and taught not to ask questions. “Managers” were supposed to keep the workers busy.

How times change. But only a little. Nearly all the factory work has been exported to other counties, where the cost of labor is a small fraction of what it is in the U.S. However, what has not changed is the factory worker mentality. Good employees are supposed to stay in their cubicle and not ask questions. They do exactly what they are told to do, and nothing more. This keeps the person above them comfortable in knowing that their underling will not try to take their job.

Read more…

Money, Success college degree, education, employees, financial success, fulfillment, happiness, job, school system

This is the last post in the series. See the bottom of the post for the other nine posts.

90% of Financial Success Is Psychology

Have you ever looked at the list of the world’s wealthiest people? It seems that each person found a different way to get rich. Some people, like Bill Gates, did it by building a software business. Others did it through investing. Warren Buffett is a great example. Still others did it in different ways.

So that begs an interesting question. If there’s so many different ways of getting rich, what do they all have in common? The answer is, a certain way of thinking.

90% of financial success is determined by how you think. The remaining 10% is the specific strategies people use to get rich. Most people love to focus on strategy. They talk about who to hire, how to do marketing, or which properties are best to buy. But all of these strategies will only work if they are built on a certain mindset. And this mindset is the psychology of financial success.

Read more…

Investing, Money, Success Bill Gates, education, financial industry, mindset, psychology, secrets, Warren Buffett, wealth

For millions of Americans and people around the world, a college education is thought to be the key to financial success. I think this is especially true among people who have never been to college. They think that if they can educate their children better, their children will be better off financially.

I don’t think this is true at all. College teaches people to be good employees. And if you think employees are wealthy, or that a high salary creates wealth, then you will probably disagree with this whole post. Employees are poor because they spend all their time at work. By the time they come home, they don’t have enough time, energy, or desire to get rich. And they will never get rich working for someone else.

A high salary does not create financial wealth either. A high salary only creates high expenses. Nearly all Americans spend as much as they make, and then a little bit more. The higher the salary, the more they spend. It means a more expensive house, cars, dinners and a bunch of junk that will never help them get rich. And, what’s worse is that people think that they are doing well financially when they have a high salary. When in fact, they are actually doing poorly.

Most people are aware that some of the wealthiest people in the world did not graduate from college. The most famous example is Bill Gates. He dropped out because he wanted to focus on Microsoft, and he knew that learning the information taught in college would not be a good use of his time.

Read more…

Money, Success Bill Gates, college, education, financiers, Money

Nearly everyone in America wants more money. And considering the financial crisis rocking the world, most people everywhere feel like they need more money. How can we get more money?

Our answer is through skills. Every successful person uses a set of strategies to achieve their goals. So, what are the skills required for financial success?

Here are three ways that you can increase your financial success:

1. Goal Setting. This is literally the first step to achieving anything. The idea is to get a crystal-clear concept of exactly what you want.
2. The Ultimate Success Process. All successful people refine their strategies to achieve their goals. The Ultimate Success Process is a very simple, easy to use system that you can use to get anything you want.
3. Education. The skills for achieving anything in life are not taught in school. And this is especially true for achieving financial success. If you want to be rich, you will need to read the books, listen to the CDs, and/or go to the seminars that teach you how to get rich.

This is not a complete list of everything to do to get the skills for financial success. It’s just a good start.

Dreams Come True, Investing, Money, Success education, financial skills, financial success, goal setting, skills, the ultimate success process

Here’s an article on Best Advice that some celebrities, authors and financial experts received.

One thing I noticed, most of the financial advice we receive is from our friends and family. Occasionally, a economics professor might have a word or two to help us. Interestingly, there isn’t one answer of someone who learned something in school or high school. I’m not blaming the teachers.

Despite being as obsessed as Americans are about money, it’s rare for a school to offer classes in money management or investing. Then we wonder why people making $2,200 a month buy a house that has a mortgage of $1,700. We wonder why people only save a few percent and spend 110 percent. We wonder why people spend their hours waiting until they can retire.

There are two answers for this: one, our educational system is just too short-sighted. Most schools taught nothing about computers until the turn of the 21st century.

Another answer has a more conspiratorial tilt. Our schools are just training grounds for futrue employees. They don’t teach ideation and innovation; schools teach dependence and execution. We’re teaching bright minds to be the best cogs in the wheel they can. If you teach a student the power of compound interest and exponential gains and in a few years they can retire. Then, who will be the next great cog, the next amazing paper shuffler, or the next meeting bobble head?

This is a broad brush, I know. But, it’s something to consider.

Here’s something else to consider: it’s never too late to learn personal finance, the power of compound interest, or the amazing possibilities of exponential gains.

You can check out our experiment–our beta system has been rolled out and more are on the way–at Online Investing AI.

Accelerating Technology, Dreams Come True, Investing, Money compound interest, education, exponential gains, invest, Investing, Money, personal finance