What is it that makes us think we can be successful traders? Is it the challenge? The excitement? The potential to make a lot of money quickly?
An article listing 24 statistics for why most traders lose money, pointed out that most “trading decisions are not based on sound research or tested trading methods, but on emotions, the need for entertainment and the hope to make a million dollars in your underwear.”
It’s easy to be pulled into the get-rich-quick scheme or thought process. The possibilities seem to be all around us with plenty of free apps ready to hook us into trading. A few successful clicks or swipes and another expert trader is born!
Don’t Get Sucked In
Another article, written by Vasant Dhar cautions, “Do not get sucked in — no matter whether they have noble-sounding names or are ‘free.’ You will most likely lose your money or worse. There are better ways to make money.”
Dhar continues, “With the exception of people like Warren Buffett, humans are poor investors and even worse traders. Sure, the occasional human might get lucky, but in general, the odds are heavily stacked against you.”
Since Dhar has been a professor at NYU for over 20 years, his “message to all students and professionals is to not overestimate their competence or the quality of their beliefs, but to continually challenge them.”
He also references how free apps and platforms are making money, something iFlip wrote about in their blog: How Someone Lost 1 Million Dollars On Robinhood.
Turn Yourself Into a Slot Machine
Says Dhar, “How you perform is largely irrelevant… as long as there are some ‘intermittent rewards’ for the user, like a winning trade. Indeed, the experience created is one of gamification. It is fun, like being in a casino… As a former designer of Google recently remarked, ‘if you’re an app, how do you keep people hooked? Turn yourself into a slot machine.’”
The free apps make trading look easy, so we jump in, whether we know what we’re doing or not. Unlike a casino, some of these free apps will even loan you money for your trades! Without any direction, we may assume that any winning trade is good and any losing trade is bad.
Being human, it’s usually our emotions that get in the way of successful trading and investing. We tend to “go with our gut,” overthink things, make excuses or blame something. If we have rules, we can easily find excuses not to follow them.
Profits and Losses
London-based Raconteur added this insight, “Most humans have this natural tendency to snatch profits and run losses. Successful traders turn the rationale on its head, cutting their losses short instead and running their profits. They understand they can experience more losing than winning trades yet still make money if the profits on the winners exceed the losses on their losers.”
iFlip agrees completely! Their algorithmic intelligence (A.I.) uses machine learning to analyze positions daily. It then determines whether to buy, sell or hold. This cuts losses and lets winning positions run.
Machine learning A.I. isn’t based on any human emotion. It doesn’t care what was tweeted, what was said at the national conventions or if a guru is promoting a certain investment.
I Like Algorithmic Trading
When asked how traders can overcome the emotional factors that cause them to lose money, David Rodriguez, senior currency strategist at DailyFX, part of IG Group said, “I like algorithmic trading because when I make buy and sell decisions manually, I do foolish things and fall into the same traps as everyone else.”
Algorithmic trading has given professional traders an advantage for many years. iFlip’s Kelly Korshak was part of the development on Wall Street but left to bring the best algorithmic trading software to retail traders.
Non-professionals deserve the most effective and highly efficient mechanism to invest in the stock market. And we get that with iFlip’s A.I. SmartFolio.
As the only consumer investment vehicle on the market, iFlip’s A.I. SmartFolio, gives you peace of mind. Your money is protected and growing at a low cost. The fees are simple. Your risk is maximized.
Although performance can’t be guaranteed, a visit to iFlip shows that you’re getting the lowest risk with the highest return. When you’re doing your personal retirement planning, don’t risk trading or investing on your own. Hop over to iFlip.
There’s a place for you to start investing if you have $200 or $2 Million plus. Setting up your account is easy or schedule an appointment time, if you need more help. The same A.I. algorithmic trading software is available on your computer and on the best mobile stock app.
One last quote from Mr. Dhar. “There are very few things in life that are more important than money. Acquiring it is difficult and growing it is challenging. The last thing you want to do is gamble. Think deeply and invest wisely.”
iFlip helps you make a wise investment and makes growing it less challenging.