When it comes to myths about the financial world, knowing what differences to look for that distinguish the level of experience an investor has is essential to your financial security. If it seems intimidating to think about, don’t worry, because the signs are actually pretty easy for anyone to tell!
It’s often simply a matter of listening to the language that investors use, which can give away erroneous beliefs about the market that do not benefit the average trader in the long run.
Need help on this? Being able to spot amateur language and beliefs is critical – especially with today’s technological advances being integrated into the game of investing. Remember: language matters! Not just what is said, but how it is said, and what beliefs are being sold to you.
Often unintentionally, an amateur investor can mean well but spread their amateur beliefs, and this can lead to some pretty poor risks in investing.
So, what beliefs should you be aware of?
Knowing some basic myths can go a long way in helping the average trader make more informed decisions and not be swayed by short-term fears. We know you’re smart, but here are some tips to help you out, and some even more helpful and exciting tools and services that are here to make investing smarter and safer.
While there are many “tells” to look out for, there are a few that come out often.
Buy It Like It’s Hot
It seems almost intuitive, right? If a stock is suddenly getting notice, making waves, and seemingly “hot”, you invest in it while it is popular and are guaranteed amazing returns. At least, this is what an amateur investor would say.
While confidence is a great thing, it can be blinding when mistaken for certainty in the case of the market. This rookie “sure thing” type of thinking often betrays just how amateur an investor is, for a few reasons:
- Not all companies have complete transparency. Problems can be hidden from investors, and many have time and time again.
- Even the mighty can fall if the right competition turns the corner. With the technological advances that are happening today, competition is fiercer than ever, and can completely blindside any goliath.
- By only focusing on how popular a hotstock is and failing to take the above into account, it could lead to the mistake of buying a stock that is overvalued. Overvalue of a stock tends to happen when its price is not matched by its projected profits.
Experienced investors make their decisions even while knowing that not all investments can be a sure thing and set good communication and expectations about this fact. That’s where real confidence comes in: knowing that essential moves can be made even when stocks are tanking and preparing for maximizing success or protection with any outcome.
An experienced investor or service will know how to approach a stock that’s even declining in price, if the circumstances are right, and not act purely on short-term fears or trends only.
When avoiding short-term fears, but also wanting to make smart decisions on current and small windows of opportunity, a certain question arises: can the market be timed?
This exact question is what innovative technology of robo-trading is answering yes to, and in the case of the best algorithmic trading software, iFlip Invest, it faithfully operates on the wisdom of experienced investors in its approach to the market.
Algorithmic Trading Software
It might seem like a completely novel idea, but mathematics being “computed” into the timing of the market and learning the market’s trends like a language has been a thing for some time. The only difference is instead of a brain transferring it to papers and calculators and manual movements, it’s all being integrated into unique algorithms that interact with and learn from the market.
Management using formulas has evolved to gradual acceptance of automated trading software, and like many things being absorbed into automation, it’s the future of investing. We now have the exciting world of algorithmic trading software and the new medium of mobile stock trading to help the average individual learn to avoid amateur investor myths and embrace wisdom of experienced investing.
Got it? So…
What’s so special about it?
- It can match different algorithmic strategies to different stocks, effectively managing portfolios and market-timing in a way that considers both the sum and parts of investment in a way that is adaptive, defensive, and proactive.
- Algorithmic trading software can shift from small details and immediacy to long-term and take all into account when tailoring its strategies to different portfolios.
- Most importantly, the knowledge of experienced investors and a collective wisdom of how the market behaves in the long-term is built into the math.
The game of investing is not just about where your money in the market goes, but what services it goes to as well. Of course, we mean fees, fees, fees.
- Commissions add up, advisory fees add up, and these can fail to be configured in returns when first making investing decisions. And that’s just if you’re hiring a broker or advisor to do the work for you!
- Many discount brokerages that are online have you doing the work, but still are sometimes charging amounts like $5 per trade.
An experienced investor knows this and understands that even good investments can have their returns impacted by the services they use.
The way some people deal with this is using a fee-only financial planner, that get paid only hourly. These planners also make no money off your investment. Seen as the safer option, it’s only natural that algorithmic trading software and mobile app trading would try to build such a trustworthy relationship as well, which is what iFlip mobile trading app does.
When using a service, an experienced trader wants to make sure there is no conflict of interests, and the service does not accept compensation or commission based on product sales. iFlip takes this into account and is building the best mobile stock trading app that provides algorithmic trading and a comprehensive way to look at your returns, as well as tiered pro services with no commission charge or fees that depend on certain transactions and products.
Another tell of an experienced investor is going back to managing expectations and balancing it with confidence: no matter how excited or fearful one gets, it is important to know that no profit is actually a certainty until you actually sell it.
You can buy with confidence and feel good about it, but until you sell, it can’t be a sure thing. An amateur will talk as if hype around buying is a sure thing. This is what algorithmic trading software sets out to do: make sure the selling part is the hype, knowing the best time to sell so a profit can be celebrated.
Someone or something, such as a service or automated trading software, that helps you keep this bigger picture in mind will often help any trader pick up on experienced wisdom quickly.
Another word you will hear both amateur and wise alike use is “diversification” – but what does it mean for someone experienced? Well, diversifying one’s investments helps protect it from dependence on one asset – with volatility and uncertainty, this can mean two different things to those with experience and those with less experience.
Diversifying one’s investments is an important strategy, but equally so is protecting it. The former can be a part of the latter, but isn’t always the only step to it, although people tend to talk as if it is. Diversification can run into trouble if there is no strategy to look at stocks that offer long-term value and stocks that are likely overvalued. It’s important not to waste diversification on anything that seems “hot” only, or being fearful of any tanking prices. This is another detail that algorithmic trading software takes into account.
When diversifying, or when using algorithmic trading software to employ different strategies on different portfolios, it’s important to be able to keep a close eye on it and be trusted to read data and see results for yourself.
This is why mobile trading apps are growing in popularity and come into play.
When it comes to monitoring your wealth, it’s good to have it accessible to us as quickly as possible. Understandably, a lot of emotions are involved when it comes to our investing, and the thing we want to feel the most is secure. When the average individual is out and about, and some breaking news occurs, they will want instant access to monitor their positions and investments, as well as manage risk and jump on opportunities.
Now, imagine that all of this can occur while not leading to disrupting your everyday life, whether at work or play, in school or in retirement.
Imagine that something is doing the work for you, and you can see it in real time.
Many of us are often on-the-go, and that’s why having mobile access to your investments on a mobile trading app has increased appeal and demand. When it comes to being able to access and actively track your investments while still having algorithms do the work for you, the best stock market app for android is iFlip. No other mobile stock app is using algorithms like it, which distinguishes it from the day trading apps that are out there today. iFlip, as the best stock app android has in innovation and disruptive technology, allows for active involvement with your investment while still having the work done for you, and none of the fees eating at your potential returns on the mobile trading app.
- The decisions of an experienced investor that does not act on short-term fears.
- The knowledge gathered from comparative data going back decades in the market, as well as simulated math that runs against this backlogged data to ensure the best predictions.
- Algorithms that allow for strategies to be used differently on different individual stocks.
- Simulated portfolios and portfolios that you can tailor on your own.
- Information you can access at anytime, anywhere.
- Trading that will work for you if you’re preoccupied during an opportunity, or trading that will protect you when you’re attempting to relax while catastrophe strikes.
With the beauty of technology, dreams are becoming a reality and possibilities are evolving. iFlip mobile trading app and its algorithmic software has all of this and more.