18 April, 2018

Why technology has actually made Stock picking both tougher and easier

I came to believe recently that one of the rising challenges of current investors is research. This is despite that technology has benefited us when it comes to receiving timely and accurate information/comparisons. We no longer have to wait to see market prices on letters or newspapers the same way as how the legendary gurus did. The list goes on and on.

However, technology actually makes it tougher for investors to get into the market early. With my available time and energy, I have been trying to research whenever possible and found some good companies. However, I am mostly late when I finally discovered them. This is because information is so fast and other global investors had already made their mark in these companies.

For better or for worst, robots and AIs have been also helping humans and intuitions with such discoveries on growth stories.

One typical example is the AI Powered Equity ETF with the ticker AIEQ. It uses AI to seek the fastest growing or stable companies which are below their intrinsic value. What it does is it processes available information of 6000+ companies based on selected algorithms and news articles (like a research analyst working around the clock; and it is getting smarter). Imagine how long it will take for humans to do the same with equal quality and results.

Their stock holdings includes Amazon, Nvidia, Salesforce, Google and T. Rowe Price. The information is readily available for viewing and you can download the full list of their current held stocks.

And at the same time, you are probably late again when you see them.

14 April, 2018

Forex demo account, have fun without getting burned

Forex trading is considered a high risk derivative. There are people who take classes to learn how to trade, yet a 100% rate of success is not fully guaranteed.

What makes Forex so risky?
Unlike stocks, you cannot really queue for a desired price. In order to get into a trade, you have to pay a slight premium be it a Long or a Short. In other words, you are already making a loss by entering a trade. (similar to brokerage fees)
In order to make it big, we need high leverage to secure good profits. Thus, losses will be at the same time well amplified.
It is highly volatile since it is trading off 24 hours (from Sunday 5PM EST till Friday 4 p.m. EST). This is also because currencies are highly demanded in the world’s businesses.

So what can we do if we are interested to learn but do not want to be exposed to financial risks?
For one, there are trading books. However, we will still lack the aspect of hands-on experience simply by reading.

So what you can do is to experience it using a Demo account where you are able to simulate trading currencies with unreal cash.
I have been trying Justforex Demo and Oanda Demo account out to get the real feel of forex risks, and to get used to how their platform and product works.

Since it is a demo account, we can afford making mistakes and learn from them.
Most importantly, you can have fun with it without getting burned!

Below is just a snapshot from Oanda Demo account.