Advisor Investing versus Automated Trading: The paradigm shift is slowly taking place as investors around the globe. Individual now realize there investment capital which their financial advisors have been managing is really doing anything good for them. Their money has just been plopped into the market and left alone, not making the returns they were once making.
Times have changes, automated tradingstrategies are being used, new investment tools/vehicles are now available that are cheaper to invest in, putting mutual funds to shame. The big question is has your financial advisor upgraded their skills and knowledge base in order to profit from the fluctuations in the stock market, bonds, and commodity market? I doubt it…
Many of my close friends and even some relatives are financial advisors; none of them have evolved to what is required today to meet the needs of the casual investors and even the old school long term investors who will be invested for the next 20+ years are now demanding things most advisors cannot do, or even offer.
When I talk about automated tradingI am taking about technology that allows us to run algorithmic trading software that actively trades the market for us. Taking advantage and profiting from both rising and falling market fluctuations.
I understand why financial advisors do not actively invest their clients’ money, I really do. It’s tough enough to manage 1 account actively, so how in the world can they manage 500 – 3000 clients. But, things have changed and with new algorithmic trading software, automated investing is now simple to run in hundreds of accounts, at the same time, and profit from both rising and falling market conditions.
Lets face it, investors know money can be made from a falling stock market, so why are they losing money, watching their nest egg evaporate during yearlong bear markets? Simple, advisors have yet to let go of the old and out dated investment model they know, and move into the new era of automated trading.