The Online Investing AI Blog

One day, your ability to generate wealth will be automatic and ever-present.

How can we make this assertion?

The exponential wave of technology, which is turning the globe into interconnected, untethered web of information, will eventually wash over the world of personal finance.

Those first waves have already lapped onto the shore. The tsunami, though, is building.

In this untethered world, the power of mobile financial apps are growing in power.

Here are some  great apps you can use to monitor the market and, in some cases, use to trade.

Read more…

Accelerating Technology, Automated Trading, Internet, Investing, Money, Online Investing AI apps, financial, management, mobile, Money, personal finance, tech, technology, wealth

Amazing photo by Zara @ Flickr

Despite the prodding of Tim Ferriss and Jonathan Fields, some folks don’t feel comfortable about quitting their day jobs, starting their own businesses, and traveling to Thailand to learn Thai stick fighting techniques.

We even talk about escaping the cubicle life.

That’s cool.

But the one thing that is true in the Wealth Singularity and the thing that drives us to create advanced Automated Trading technology is that lifestyle design is lifestyle design. You don’t have to shed your job. You don’t have to travel to exotic locales. You don’t have to become an Internet marketer.

You approach life on your terms and no one else’s.

If you’re ready to move toward lifestyle design, but aren’t prepared to dive in head-first, here’s a way to test your lifestyle design skills without a lot of risk.

I call it the 10 percent self-employment solution. Here’s how it works:

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Accelerating Technology, Online Investing AI employment, financial, Investing, job, jobless, Money, personal freedom, saving, unemployment, wealth singularity

cesarastudillo@Flickr

It’s a little early for Halloween, but Paul Farrell manages to scare up a spooky vision of an investing singularity at MarketWatch.

Farrell’s view of the Singularity is dead on: machines are getting smarter and they’re being used in investing. Although this isn’t something new, computers are much more powerful today thanks to the law of exponentially increasing returns.

For Farrell, this is a bad thing. A dire thing.

Farrell points out that HFT-Quants (High Frequency Traders who use Quantification techniques to trade) are using this incredible technology to snap up returns before anyone else gets a chance to take advantage.

This is leaving the retail trader, i.e. me and you, out of the market.

How accurate is this assessment? How scary is his conclusion?

Read more…

Accelerating Technology, Automated Trading, Investing, Money, Online Investing AI, Success, US Economy financial, quant, quant funds, singularity, stocks, wealth

Y @ Flickr

In order to free yourself from the domination of arbitrary standards and discover the true standards by which you should behave, you need to find the courage to do what you must without regard to what others may think.
–Chin-Ning Chu

Can you imagine an animal gets caught in a trap, frees itself, and then steps right back in the trap again?

It happens every morning.

People are hypnotized to believe that holding a job means they are secure and that this job is source of wealth and freedom.

Sadly, as many people are finding out, it is neither.

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Automated Trading, Business Strategy, Investing, Online Investing AI employment, financial, Investing, job, jobless, Money, personal freedom, saving, unemployment

Can you imagine running a race and not knowing where the finish line is? Is it a 100-meter sprint? A 400-meter race? A marathon?

You would have no idea what type of pace to set, or when you could rest.

Yet, this is one of the problems that people have with investing: there is never a finish line. Most of us invest day-to-day and swing emotionally with the market. We’re happy when the Dow goes higher, and sad (or scared) when the Dow goes lower.

But how the Dow moves should have little effect on our daily emotional state, once we move toward a more holistic approach to investing and once we understand the five goals of investing.

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Investing, Money, Online Investing AI financial, financial freedom, invest, Investing, Money, personal finance

If you’re sensing a layoff, or have already received word that the firing is coming, you can take some steps to not just survive the downturn better, but also set up a new life.

I call this transition planning. Here are some tips:

If they ask you to sign a severance agreement, don’t sign it hastily.
You can talk to your supervisor about negotiating the terms. Ask for more money, job search assistance, and health benefits extension.

Ask for an extension to tie up loose ends.

If you are in the middle of a project, for example, ask to stay on as a consultant or freelance worker. You may have to take a cut in pay, but it would at least give you confidence (and money) while you enter this transition period.

Read more…

Automated Trading, Dreams Come True, Investing, Money, Online Investing AI Automated Trading, employment, finances, financial, layoff, stocks

The stock market is like a garden: it takes a little rain and a little sun to make it grow. But, that’s not what the financial wizards who run Wall Street want you, as an independent investor, to think.

They want you to believe that investments can only turn positive in good economic times and during Bull markets. They want you to expect your portfolio to only gain during those times, too.

It’s obvious why the industry spreads this philosophy: if they lose money, they can always blame the market.

In truth, you can make money in any economic condition, you just have to employ an investment strategy that is nimble and consistent, two things the financial industry (generally) and the mutual fund industry (specifically) are not.

During poor economic conditions, you can:

• Seize a risk premium by trading stocks that are doing well.
• Short poor-performing assets.
• Invest in commodities that are performing well, while taking short positions in others.
• Trade currencies

You can even turn your strategies into momentum- or day-trading systems that quickly change with the condition of the asset or market.

While independent investors get screwed in bad economy, wealthy investors use these strategies to make even more money.

Online Investing AI is developing advanced technology, including artificial intelligence technologies, that will be designed to find strategies in every market condition.

This is the final post in a series about lies financial wizards want investors to believe. For more information, you might want to read the first post in this series. It’s called Lie: The Market Is Too Complex For Regular Investors To Understand.

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There’s a saying: If you want to attract people’s interest, build a fence. If you want to keep them out, re-name it a defensive perimeter.

Turning simple concepts into difficult financial terms is just one of the tools financial experts do to attract clients and, on the other hand, repel them, at least from considering doing their own financial investigations.

Those big terms and exotic numbers and equations make it seem like these financial wizards know what they’re talking about. On the other hand, this complexity lets them hide damaging truths about a company or asset through a web of double-speak, accounting slang and buzz words, as well as discourages further investigation by people like you and me, independent investors and traders.

By creating these barriers, the financial industry hopes you’ll give up on trying to understand investing and hand over all your money to them to manage.

There are several ways the financial wizards do this sleight of hand.

Read more…

Automated Trading, Business Strategy, Investing, Online Investing AI, Success finance, financial, Investing, market, stock market

It’s silly for anyone to believe that they can accurately predict the future. However, it’s fun to make our guesses and see what happens!

My guess for 2009 is more financial chaos. As people sit home and watch TV over the holidays, the massive losses from mutual funds in their retirement accounts will become real for them. While they eat too much and attempt to enjoy the holidays, which have been consumed as marketing opportunities, most people will feel like they don’t have enough money.

This will cause selling in the beginning of the year, and push the markets down further. Most of the so-called experts on TV today say that we’ve hit a bottom and the markets will start moving up. But to me, that’s just wishful thinking. They depend on the markets for their paychecks, and as the markets go down the chance of them losing their job goes up.

What can you do? As the saying goes, if the hole is getting deeper, stop digging! It’s pretty clear that Americans as well as the whole country itself, has created too much debt. And, without the skills to invest properly, they have no way to significantly improve their financial situation.

The Internet is the great empowerer, and it is the most powerful “invention” in the history of of humans. There is no problem that human ingenuity cannot solve, and financial problems are no exception. What if people use the holidays to read a book, use the Internet, or form a plan to make 2009 a personal financial success? How would that be?

Investing, Money, Online Investing AI, Success 2009, debt, depression, finances, financial, Investing

A recent article by the Wall Street Journal details how Bill Miller’s Value Trust Mutual fund lost most of its value. This year, the fund went down 58%. How is it possible that a successful mutual fund manager can do well for 15 years and then lose most of the funds money in a short time?

The answer is risk. As you can see from the chart, when the market was going up the fund made money. In fact, the went up more than the market. The problem, at least for Bill, is that when the market went down, his fund went down even more!

The challenge is that most people have no concept of risk. They believe that something is risky, and never try it. In this case, they actually have no idea and never find out.

Conversely, often people will try something once and it will work. They quickly conclude that there is no risk involved. Perhaps, since Bill was successful for 15 years, he decided that there was no risk.

So what? What does this mean to you, trying to figure out how to invest or what is going to happen with the market? It means that a track record, of even 15 years, does not negate risk. It means that even though many mutual funds make money after a year or a few years, they are still risky. It means that if you believe what mutual funds and investment industry tells you, there is a high element of risk.

What’s the solution? The solution is a way to measure risk. But not in a university statistics class, that nobody understands and has no practical value in your financial life. The solution is to find a way to measure risk, and create a way for people to invest while measuring and minimizing that risk.

Investing, Money, US Economy Bill Miller, finances, financial, Investing, mutual funds, value trust