The Online Investing AI Blog

shioshvili @ Flickr

This isn’t New Agey hocus-pocus, necessarily.

This is reality.

The things you think about. The things you believe. The things you read and watch. The things that make you confident and the things that make you fearful are the very foundation of wealth generation–on a lot of levels.

The pricing of stocks and other assets reflect beliefs about their value. These beliefs aren’t just the thoughts and opinions of analysts and big-time market movers, they reflect your ideas, too. Now, your personal belief may just represent a fraction of that price, but when merged with the collective sense, you have mass market psychology.

Read more…

Internet, Investing, Money, Online Investing AI, US Economy belief, beliefs, indexes, information, market, Money, stock market, wealth

Pic courtesy DavidDennis @ Flickr

There’s a killer on the road. His brain is squirming like a toad.
–Jim Morrison

Remember Jim Morrison? He was the Lizard King.

Seth Godin says that being king of your lizard brain is a good thing. For Seth, the lizard brain is that deep, dark shadow of the evolutionary past. It’s the part of the brain that squirms with the fear, fight,  flight, and fornicate responses.

Even though the lizard brain hasn’t been called on to lead us out of sticky situations involving bears and mastodons in thousands of years, our lizard brain still pumps out signals of imminent doom and demise in the form of resistance.

Resistance, according to Godin, leads to compromise and failure. (Steven Pressfield talks about it here, too.) Resistance and compromise have implications in personal finance.

Read more…

Accelerating Technology, Business Strategy, Great Books, Investing, Money, Online Investing AI, US Economy book, linchpin, lizard brain, panic, personal finance, resistance, seth godin, stock market

I recently read Robert Kiyosaki’s latest book, Conspiracy of the Rich. I highly recommend it to everyone because it explains so much of what is happening around us. It also helps us question so many of the things that we tended to  just accept.

One of the things he points out is that the government is diluting our money through inflation. And I think it’s true. After doing some research, I discovered that the CPI is not only inaccurate, but is designed to understate inflation. The government pays money to people and other governments based on the CPI. It pays money to people through programs such as social security. It pays other governments to repay the money that it has borrowed.

Read more…

Great Books, Investing, Money, US Economy books, conspiracy of the rich, dollar, kiyosaki, Money, saving, stock market, Success, wealth

In 1997 chess grandmaster Gary Kasparov met the Singularity. And the Singularity won.

In 1985 Kasparov easily beat a chess-playing computer, even though he resorted to a trick to out-Kasparov the machine’s Kasparov program. Eleven years later, though, the chess legend struggled with Deep Blue, a computer with even more powerful processing power. But even Kasparov couldn’t compete with Deep Blue once its development team doubled the processing power a few years later.

Kasparov was beat, but he drew new lessons from the run-in that he details in New York Review of Books. These lessons might help you become a smarter–and less anxious–trader.
According to Kasparov, the exponential gain in technology didn’t ruin the game; it actually had some surprising aftershocks.

Read more…

Accelerating Technology, Automated Trading, Investing, Money, Online Investing AI AI, artificial intelligence, chess, chess match, discipline, stock market, trading

L.Marie@Flickr

As the maker of Automated Trading financial systems, we offer a few reasons why computer-based trading can help investors. They operate continually. They edit out emotions. And, they can be programmed for success.

When it comes to trading, it seems that most humans are programmed to lose.

This week, we’ll take a look at the ways you and I can be programmed to lose, especially when it comes to trading decisions.

In today’s post, we’ll take a look at social proof, a psychological theory, that may exert a powerful influence on unsuccessful trading strategies. Social proof is nothing more than “follow the leader,” except, in this case, no one knows who the leader is. And no one knows why the leader is the leader.

Here’s how it works.

Read more…

Automated Trading, Investing, Money, Online Investing AI, Success lose, market, Money, programs, stock market, stocks, trade

During the last decade, there’s no doubt technology has made investing and trading strategies more powerful for independent investors.

Now it’s making things more fun.

Zoodak is a new way for traders to connect, trade, learn, and even win a grand.

Like a lot of trading contests, members of Zoodak can enter their picks into a contest. The investor whose picks outperforms the groups wins a grand. But, beyond the thousand obvious reasons, there are other reasons that Zoodak is a great place for investors to congregate.

Read more…

Accelerating Technology, Internet, Investing, Money, Online Investing AI resources, stock, stock market, stock prediction, tools, trading, zoodak

Some people are so good at investing that they become financial rock stars.

Warren Buffet is a financial rock star. His teacher, Benjamin Graham, proved that you’re never too old to be a financial rock star (or even alive for that matter),

Just like Grateful Dead fans are called Deadheads, fans of investor Jack Bogle, author of Bogle on Mutual Funds, are called Bogleheads.

Peter Lynch and John Templeton are up on that list of investment rock stars, too.

But what about real rock stars? Don’t you think they have financial advice? I think if you listen to some of the most famous rock songs, you’ll learn great investment lessons.

Read more…

Investing, Money, Online Investing AI, Success, US Economy advice, Investing, Money, rock stars, stars, stock market, stocks

DH Wright@Flickr

It sure sounds ominous: Dark Pools and Dark Pools of Liquidity are in the headlines frequently now. The term makes it sound like they’re nefarious forms of finance, but that depends on what camp you’re in.

And, to some extent, how much money and connections you have.

Dark pools aren’t necessarily evil. You don’t need to wear a mask and have Stormtroopers to master them. They’re simply connection networks that provide liquidity that are not displayed on order books.

Big investors and institutional investors say this allows them to enter or exit positions without revealing themselves to the market.

Some say that’s good. Others say it’s not fair.

Read more…

Accelerating Technology, Automated Trading, Investing, Money, Online Investing AI, US Economy broker, dark pools, dark pools of liquidity, liquidity, stock market

The Great Depression was not a singular event.

In fact, it was a brilliantly destructive ballet danced by the incompetence of both government and industry.

Most people see it as a super drop in stock prices followed by massive unemployment. That’s really not the case. As the chart from Smart Money shows, it had a “W”-shape path out of the dire economy.

According to the Wall Street Journal, the economy was pulling out of the Depression in 1933, but a series of policy blunders sunk the powerful recovery and created a “W” shape.

By 1937, the economy slid back into a deep depression.

Could this happen again?

Read more…

Business Strategy, Investing, Money, Online Investing AI, US Economy depression, economy, Great Depression, Money, stock market, wealth

Most people are just starting to find out about the Automated Trading revolution. But, they are aware of other revolutions that have radically changed the world in the last few years:

• The Internet
• Online stock trading
• Email
• Blogs
• Youtube
• Twitter
• Skype

These technological advances have completely changed how we do so many things in our lives. Need to connect with someone? We use Skype or email. Need to connect with a lot of people? We use Twitter and a blog. Need to buy stock? We use an online stock broker.

Yet the investing industry has changed little outside of the use of online stock brokers such as TD Ameritrade. Since the Internet is a powerful empowering technology, it has given people the tools to choose and analyze which stocks that they invest in. And to decide for themselves when to buy and when to sell.

Outside of the individual stock trading area, many things are still the same. People buy mutual funds and index funds in their 401K or IRA. They take advice from financial advisors. And they don’t follow their retirement accounts closely or actively manage them.

We believe that the Automated Trading revolution will change all that. As people learn about the benefits of Automated Trading, they will start to use these systems and stop using the old investment strategies. Automated Trading allows people to benefit from high returns with less risk. And, it puts them in control of their money. Besides that, fees can be less than for traditional advisors or even traditional online brokerages.

The real benefit of Automated Trading systems is that they actually create value for their users. Virtually all mutual funds underperform the market over the long term. Index funds return 8% annually over the long term, which is not significantly more than inflation. Automated Trading systems are different. They use technical analysis to trade using a defined system. This creates consistency, removes human emotion, and creates the opportunity to have good returns.

Many of the above mentioned revolutions have made the Automated Trading revolution possible. Faster computers allow us to use artificial intelligence to create powerful systems. The Internet and online brokers make it possible to place trades quickly and efficiently. And blogs make the knowledge about Automated Trading systems available to everyone.

Accelerating Technology, Automated Trading, Internet, Investing, Success Accelerating Technology, Automated Trading, blogs, Internet, Investing, Money, revolutions, stock market, stocks, Success