As we’ve seen this week, technology and strategy have combined to give the power of hedge fund managers to self-directed investors. Automated Trading can give investors continual access to the market; trend following offers an easy-to-maintain strategy.
Hedge fund managers, though, have access to so many more markets, right? They can trade more than just stocks and bonds.
Now, thanks to aggressive online brokers who are eager to expand their offerings, individual investors now can trade all types of assets. It’s pretty safe to say that if a hedge fund can trade it, so can you.
This gives you another took of a hedge fund manager: diversification.
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Accelerating Technology, Automated Trading, Business Strategy, Investing, Money, Online Investing AI, US Economy
Automated Trading, bonds, diversification, etf, ETFs, hedge fund, manager, stocks, trend following
Each week, we expect big things. It’s only natural. People want to see dramatic differences in their lives. They want to make more money. Find more friends. Have more fun.
There’s nothing wrong with that. Except, if your results fail to live up to your expectations and you grow depressed and quit.
Actually, life is like football. It’s a game of inches as much as it is a game of yards. And your financial situation is a game of pennies and percentages. Saving a few cents, earning a few cents, and investing a few cents–on a continual basis–can have a profound effect on your bottom line.
Doing the little things right over time can add up. As you’ll see…
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Investing, Money, Online Investing AI, US Economy
information, Investing, little things, Money, personal finance, roundup, stocks, weekly wisdom
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?
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Accelerating Technology, Automated Trading, Investing, Money, Online Investing AI, Success, US Economy
financial, quant, quant funds, singularity, stocks, wealth
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.
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Automated Trading, Investing, Money, Online Investing AI, Success
lose, market, Money, programs, stock market, stocks, trade
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.
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Investing, Money, Online Investing AI, Success, US Economy
advice, Investing, Money, rock stars, stars, stock market, stocks
Creative Commons-Flickr
If we created a time line of Automated Trading and compared it to a similar time line of, let’s say, internet technology, it’s a good guess that we’re probably in the late 1990s.
The technology is almost there. The ideas are peculating. And the early adopters are already in the pool.
Problems arise in the adoption and distribution of the technology. In the early days of the Internet, only a few people with dial-up access could go online and few saw the ultimate value of the Internet. It wasn’t until a few “killer apps” (like e-mail) arose that more chose to adopt online technology and reached its current stage of mass distribution.
Automated Trading is demonstrating a similar trajectory.
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Accelerating Technology, Automated Trading, Internet, Investing, Money, Online Investing AI
Automated Trading, automatic trading, Internet, Investing, stock picking, stocks, wealth
The Little Book That Makes You Rich
is a pretty good book. It explains simply and clearly the basics of Navellier’s investment philosophy. One of the great things about his approach is that he uses a mathematical system. By his own admission, he’s a “numbers person.” And he explains why that has helped him to succeed.
Most people who trade make decisions based on their emotions. And 90% lose money. This is not a coincidence. One of the best ways to succeed as a trader is to remove our emotions. A precisely defined mathematical system is a good way to make that happen. Navellier uses such a system, and it has worked for him.
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Investing, Money, Success
buy-and-hold, Investing, Money, reward, risk, stocks, strategy
Some people think that the economic turmoil is just beginning. Others think that the worst is behind us, the government stimulus worked, and we are on the way to recovery. No one can predict with certainty which way the economy goes, but we need to prepare ourselves to succeed financially, regardless of what happens.
How can we do that?
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Automated Trading, Investing, US Economy
Automated Trading, Investing, loss, Money, profit, retirement, stocks, Success, traders
Are we on the verge of economic collapse? Are millions of people going to see their retirement saving dwindle to 20% of of the previous value?
I don’t know. I don’t think anyone can predict the future with perfect accuracy. But I do think we should be prepared for whatever happens in the future. And that includes economic collapse.
Most people just assume that things will continue going the same way as the last few years. They stay at their jobs and try to save money. Financial planners assume that stocks will return 7%. There is just one small problem with this approach. Massive economic depressions happen on average once in a lifetime. It’s been 80 years since the start of the last depression.
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Automated Trading, Investing, US Economy
Automated Trading, depression, economic turmoil, Investing, recession, stocks
Technical Analysis seems to be more of an art than a science. Everyone seems to have their favorite indicators. However, there is one small problem with they way that people choose them. They choose them based on what seems to work, without really analyzing how well they work.
You can still make money using technical analysis. The trick is that the analysis is not really important. Other factors such as trading consistency and money management are far more important. But that is the subject of another post.
The subject of this post is how technical analysis is changing, and becoming more effective. Since everything in life is getting better, why shouldn’t technical analysis? Technological innovation has revolutionized our lives in the last 10 years, and we believe it will revolutionize how people trade as well.
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Automated Trading, Investing, Success
forex, ino.com, Investing, Money, stocks, Success, technical indicators, trading
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
