Technology has a significant impact on our lives. It has transformed the way we communicate, work, and live.
Thanks to technology, investing is no more the same as it was a decade ago. You can use technology to create a time-tested investment strategy in minutes and start earning money. If you are looking to explore ways to use technology to design an impeccable investment strategy, you are in the right place.
The following seven sections talk about some incredible ways how technology can help you refine your investment strategy.
1. Harness the Power of Artificial Intelligence and Machine Learning
Top-class angel Investing professionals and high-performing investors know how crucial a role Artificial Intelligence (AI) and Machine Learning (ML) play in helping them devise their investment strategy. AI helps asset and wealth managers improve their decision-making capabilities, save costs, reduce risks, and grow revenue.
You can find the most prominent example of AI and ML in Algorithmic Trading or Algo Trading. Algo Trading lets you identify the opportunities in the stock market based on preset parameters. It can also help you backtest your investment strategy and use data to improve your investment decisions. AI and ML let you formulate algorithms to find historical prices and transaction-related data that you may use to refine your investment mechanism.
For example, Kavout’s flagship AI-enabled platform, the ‘K Score,’ uses various datasets, predictive models, and pattern recognition technology to detect daily top stocks and provide a stock-ranking rating.
2. Make Use of a Free Portfolio Management Software
Portfolio management software can simplify your investment strategy by making it more streamlined. Without software, it might be challenging to keep track of your ever-growing portfolio. The software makes all information readily available at your fingertips.
A top-class portfolio management software provides you access to budgeting tools, planning and forecasting tools, market analysis tools, interactive charts, volatility indicators, etc. Such advanced tools can help you create a time-tested and robust investment strategy. The good news is – most portfolio management software are free.
For example, Personal Capital offers free portfolio management software that you can access on smartphones and computers. It lets you find details about your bank account, investment accounts, credit card, and loans from an easy-to-access personalized dashboard. You may visit the dashboard to discover how your investment is performing and realign it if required.
3. Communicate With A Financial Expert, Digitally
Innumerable apps and web platforms provide access to competent financial experts. While some are free, others charge for their services. The pandemic has increased the popularity of financial advisors offering on-the-go services.
Most financial advisors use social media channels to communicate with their clients. You may find them on Facebook, LinkedIn, VOIP, Whatsapp, YouTube, or any other networking channel. When you stay connected to a competent financial expert, your profitability increases and losses minimize.
This resource can help you find the best financial advisors in the industry.
4. Virtual Reality Helps You Monitor Your Investment Strategy in Real-Time
Virtual Reality (VR) and Augmented Reality are redefining how people approach investments, especially real estate. It does not matter where you are or what you do; you can open your PC or smartphone, visit the developer’s website, and check the property virtually.
VR offers you an immersive viewing experience that is akin to reality. By combining VR with Big Data and AI technologies, investors spot trends to find properties in demand and locations most likely to appreciate in value.
A report estimates that the VR market will touch a whopping value of $80 billion by 2025, of which $2.6 billion will come from the real estate industry.
5. Conduct Transactions Securely
Technology has transgressed all areas of investing. Financial services providers secure your data with secured gateways, firewalls, and encryption technologies and ensure your financial data stays safe and private.
Although the threat of hacking, scamming, and phishing still prevails, companies are using advanced technologies to make your private data more protected than ever. They use biometric scanning, password regulations, etc., to strengthen the security mechanism.
Hence, before investing your money through a web platform or app, you must check its security parameters to stay safe from hackers and scammers.
6. Never-Seen-Before Investment Avenues
The proliferation of technology has also opened newer investment channels for investors. For example, the rise of technology also gave birth to many digital currencies, known as cryptocurrencies. Cryptocurrency is a relatively new concept that no one even thought of a decade ago.
Such new investment methods are slowly gaining popularity among big and high-net-worth investors who do not mind taking higher risks for gravity-defying returns.
Hence, if you know how to decode technology, you can include bigger and better investment options in your overall portfolio.
7. Predict The Future Efficiently
The best investment strategy is the one that predicts the future accurately. It is a result of meticulous research and best-performing financial tools.
Thanks to information overload, even the best investors tend to overlook important news that must have figured prominently. Thankfully, you may use new-aggregation apps or websites that provide you with information that matters the most.
Most news-aggregation apps and websites nowadays use AI and ML to bring to you credible news that matters. Such platforms also ensure that you stay updated about the best ideas for investment.
Technology might be disruptive if you do not go with the flow. It must figure prominently in your to-do list if you want to refine your investment strategy quickly and efficiently.