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April 10/2017

Invest like a robot

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Are Robo Advisors Robots or Humans?

10 years ago I was a daily trader. I used to wake up in the morning and spend my morning and afternoons trading stocks.
The most common problem I had was that in the evenings when the market was slow, I used to prepare a plan for the following day. The plan was created when I was calm and had time to plan. In the morning I had to monitor the market and execute my plan. Very easy!

The main problem was that in the morning there was news, big events, buyers, seller and lots of action. When I saw all that action I ignored my plans and managed my trades with emotions (Greed and fear).
The bottom line was that I made money but not as much as I planned to make, so I changed my direction from day trading to being an investor that checked the portfolio every few weeks.

Back in the time I wondered how great would it be if I could have a robot with no emotions to execute my trades! So the news is that Today you have this option.

Whether you like it or not we live in a world of technology. That means that your money is subjected to this modern way of living. So, if you want to make money from the money you already have, then you need to learn how to use the technology that will do this for you. Otherwise you are going to be left behind in your investment success.

Putting Your Money in the Hands of Robots

Pretty scary thought isn’t it. Yet, it has become a reality and really once you learns the ins and outs about robotic investment you are going to be quite impressed. One of the reasons why is because “time is money” and learning to rely on robot investing is a huge time saver.

The Emotions Behind Stock Investing

It seems pretty strange to talk about emotions and robots in the same context when emotions are not part of the makeup of robots. However, traditional stock investing is usually dependent on the fears of the individual investing, or the greed of a person.

Stock investors emotions are usually triggered by the red or green bars giving the indicators as to what is happening with the stock they have invested in.

This has been well recognized by stock investment companies and in order to relieve the stress that can come with this type of investment they have developed an algorithm to allow for trading, and these are the trade robots. They are programmed by the market pro using the right parameters.

The Reality is This is Really Robo Advisors

To reduce your fear of putting your money in the hands of robots it is only fair to explain to you that really what we are talking about here is “robo advisors”, and not true robots. However, although the algorithms are controlled by humans, it is not humans that will be doing your stock picking or trades for you. This is a good thing because you are not depending on some human’s likes or dislikes when it comes to choosing stocks for you. Nor, are you subjected to as much human error.

The Robo Advisor Basics

Although the Robo Advisor program is not human you will still be interacting with humans who know how to operate the program and these are the Robo Advisors. Who by the way, have rightfully gained the trust of thousands of people. They are guided by strict regulations, so this is not a fly by night type of scheme.

What You Benefit from using a Robo Advisor

  1. It can give you a simple to follow investment plan.
  2. Answer the majority of your queries regarding your proposed investment. In fact, you will get about 98% of the amount of information you need for this type of investment.
  3. Less confusion and stress with simple methods of investing.
  4. These Robo Advisors are easy to work with and usually have websites that will help guide you through the investment process with the direct help of one of their advisors.
  5. Simplicity in investments usually provides a safe and secure platform for investing.

These are all simple but very powerful benefits when you want to dabble in the stock market.

Why You Should Feel Secure with A Robo Advisor?

Aside from all the benefits you need to feel secure with who will be handling your money. This is a service that has been tried and tested by many before you with great success. They are established in the investment industry and they are well regulated. Your investment money is kept separately from the Robo Investor Company. So even if the Company runs into personal business financial problems this is not going to affect your funds.

You Are Still In Control

You are not just going to hand your money over to a Robo Advisor and then hold your breath in the hopes that he or she does right by you. Together with your advisor you will agree on a plan that is right for you. Then this pro will rely on the robo program algorithm to come up with the right choices for you based on your input and the suggestions of your Robo Advisor.