We are fortunate to live at a time when technology makes investing easier than ever. With the help of technology, you can make better investing decisions and grow your wealth.
Technology has been a boon to me. Because of the Internet, I can work from home and create a flexible lifestyle that I enjoy. The spread of technology has also made it possible for more people to invest, making the ability to grow wealth through investing accessible to almost anyone. With the technology tools available to today, you might be surprised at your ability to make better investing decisions.
Wisdom of the Crowds in Making Investing Decisions
One of the more interesting ways to use technology is to learn from what others are doing as you learn the basics. Social investing apps like copyop allow you to see how others are investing and then mimic their moves. These social investing networks provide you with the ability to connect with other investing community members, get advice, learn their strategies and even try to use their strategies to find your own investing success.
While you don’t want to fall into the trap of going along with the herd, these sites can still provide valuable insight, especially if you are trying something new, like options. While options trading isn’t for me, I can see where having a site help you learn the ropes can be a good thing for the beginner. And there are other social investing sites that can help you better understand stock investing and interact with people who invest using a variety of strategies. Just as the Internet brings you together with others in the world with similar interests to yours, it’s possible to find mentors and learn about investing.
Another way to engage in social investing is to learn from competitions. I’m participating in Grow Your Dough with 19 other bloggers and we are having a good time tracking each other’s progress. It’s possible to see what other participants are doing with their portfolios, and see how you can apply the winning strategies to your own portfolio.
Robo-advisors Make It Easy to Build a Portfolio
The rise of robo-advisors is also one that can help you with your investing. These companies use algorithms to build a portfolio for you, allowing you to sit back and relax a little bit. I use Betterment for my retirement portfolio because it’s a great long-term choice. It doesn’t cost anything, and allows me access to the entire market. No stock picking required. I know that other people use tools like Wise Banyan and Acorns to build their portfolios.
Robo-advisors are great because they take the emotion out of your hands. I like robo-advisors for long-term investing because it offers you the chance to build wealth over time, but takes you out of the equation. You aren’t as tempted to trade frequently when you use these tools, and they are often low-cost. Automatic investing with a set it and forget it approach makes a lot of sense in a long-term investment plan. The best investing decisions you can make with technology is to sign up for an automatic investing plan with a discount broker or robo-advisor and then avoid trading frequently.
Research and Portfolio Tracking
Finally, technology puts tools for learning about investing and keeping track of information in the palm of your hand. You can make better investing decisions when you have access to better data and the ability to track your performance.
Most trading apps offer you advanced technology tools like stock screening and company information. Your investing decisions can improve when they are based on solid information. While one of the best things you can do is just let your long-term investments grow using index funds, if you decide to do something more active it makes sense to use these technology tools to gather as much information as possible.
With the help of technology, your investing decisions can be more productive — and you can feel more confident about what you’re doing.