Alternative Investment and Computer Trading Algorithms
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Wall Street often teaches us that we should invest for the long-term. A frequent theme they preach is that we should Buy-and-Hold and simply ride out the ups and downs of the stock market. But who benefits most for this overly simple approach: Wall Street firms, or you, the individual investor?
The secret to answering this question is to look at what Wall Street actually does with their own money.
Wall Street firms actively trade stocks for their own firm’s profits. It is estimated that 75% of NYSE trades are alternative computer-generated algorithm trades. Maybe our goal should be to learn how to trade the way Wall Street firms actively trade stocks. They use complex computer models with hundreds of inputs to track the momentum of the markets. These models find and execute short-term trades.
Many people approaching retirement are concerned that they may not have enough retirement savings to provide for a successful retirement. They are also concerned that a downturn in the economy or the stock market could deplete their retirement savings. Alternative investments may provide the extra investments gains they need for successful retirement. Being noncorrelated with the stock market can provide protection from stock market declines. Serenity Wealth Management plus Curtis and Irina can show you how to implement computer-generated investment algorithms.
Alternative Computer-Generated Investments
These computer-generated trades follow the momentum of the stock market, not the fundamental and often flawed projections of what Wall Street analysts say a stock might do in the future. The focus is on what is happening right now, in real time—the actual momentum of the stock market.
So, which would you prefer driving your investments and future wealth, a Wall Street analyst—no better than a fortune teller? Or would you rather trust a sophisticated, and proven computer algorithm to make trades and profits? These algorithms frequently judge only what the next few days or weeks movements might be.
Where is the bigger opportunity? Traditional buy-and-hold, or more active trading algorithms?
As shown in my book, The Wealth Conspiracy, in the past two decades the stock market was declining or recovering from a decline, 78% of the time. How can holding through these long declines be wise? Instead, your goal should be to avoid the declines instead of suffering through them? What if you need the money for a big expenditure during these declines? Let alternative investments provide for you during these inevitable stock market declines.
Alternative Momentum Following Algorithms
Compared to humans, computers following momentum may be able to more rapidly detect and react to market trends including detecting declining trends. Computer trading has the ability to frequently, and briefly, move to cash or other investments, when downward momentum is detected. This may potentially help avoid some losses. Plus, computers monitoring up trends may detect opportunities.
I am not suggesting day trading. I am suggesting you capture shorter term momentum trades of a few days or weeks. This can significantly add-up over time.
Few individuals accomplish this on their own. However, with computer models following momentum trends, you may capture many of the short-term up trends while avoiding many of the market’s declines. And even benefit from these declines by using inverse investments.
You can learn how to get access to a few of these computer-generated, momentum-following algorithmic systems which the Wall Street big Kahunas hoard for themselves.
Curtis Hill, CFP, IRA and Irina Hill, CPA, IRA, provide fiduciary financial advice, investment advice, retirement planning, and life insurance. They serve in the Long Beach, CA; Lakewood, CA; Carson, CA; Bixby Hills, CA; Signal Hill, CA; and Los Angeles, CA areas. Serenity Wealth Management plus Curtis and Irina have extensive experience with computer-generated trading that they can share with you.
Develop a plan for yourself! Learn how to play with the BIG DOGS on Wall Street. Go to the Calendley.com calendar link below to schedule an appointment. Meet with Curtis Hill or Irina Hill, the author of this web site using the link below.