5 Ways Technology Can Help You Become a Better Investor
Investing — just like any other skill — takes considerable time to master. Yet, trial and error in this profession could end up costing you more than you bargained for; quite literally. Over the years, software engineers have been working hard on creating foolproof solutions for would-be investors, making it a lot easier for newbie entrepreneurs to break into the investment scene.
But just what technological solutions have they come up with? Read the full article down below and find out!
1. Banking and Budgeting Apps
If you want to invest more money, you’ve got to save some money first. This is where technology comes in handy. Budgeting apps such as Mint, Mvelopes, and Quicken are perfect for keeping your balance in the green, leaving you with more funds to invest later on. They allow you to control just how much you’re willing to spend and also keep good track of your bank accounts to watch for any unauthorized credit card misuses.
Now, apart from seeing where your money flows, these apps can also look out for any outstanding debts you may have, as well as assets like cars and homes. Additionally, you can even set up alarms to notify you when your balance gets critically low or when a payment is due, either via email or by text message.
2. Big Data and Predictive Analysis
Knowledge is power; especially so in the investment sector. Knowing exactly when the value of stocks will rise or fall can make you an extremely wealthy man, indeed. That is why businesses and investors are already leveraging the use of Big Data to make some sense out of the noise that is the Internet. According to Hostingtribunal, Big Data has not only the potential to save money, but make money as well; which is why around 83% of businesses invest in this technology. Most investors use programs that are capable of some kind of predictive analysis to research potential investments and then make data-driven decisions of whether to invest their money into certain ventures or not. That way they ensure a good return on investment for each deal they make.
3. Trading Platforms
Trading platforms are not just online marketplaces for investors; they are also great hubs of learning and knowledge where people can improve their skills and expertise. For instance, the Ever Forex trading platform comes with its own analytical tools and advanced trading software which can help first-time investors with their trading decisions. Moreover, as the aforementioned platform, these investment hubs often come with their own free demo version as well, allowing young investors to hone their skills first before making any real-money investments. That way you don’t lose money to constant trial and errors made on your part as you make your way to more intermediate levels.
4. Multiple Perspectives through Networking
Investing is not just about the data, but also about the angle you take. Sometimes we cannot see the bigger picture from our perspective. Luckily for us, technology has allowed us to communicate with each other in real-time over great distances (even time zones). Networking with peers and mentors enables us to inform one another of prospective investments we would have otherwise missed ourselves. As a result of this mega connectivity, each investor has multiple perspectives for each investment, making more informed decisions and staying clear of obvious money sinks.
5. Robo Advisors
As we continue our technological advancement — particularly in the fields of machine learning — investors will have something to rely on apart from their average virtual AI — robo advisors. In the foreseeable future, people will only have to fill out a small form of around 10–15 simple questions for the AI to figure out exactly which investment types are suitable for that particular person. After that, the smart AI can manage the whole ongoing financial process all by themselves as you just sit back, relax, and enjoy the ride; the dream.
Overall, machine learning and deep learning are making enormous breakthroughs each day. As such, it will be interesting to see what the future holds for the investment sector; only time will tell.