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Analysis / Business

Mixing Human Intuition With Computer Assistance While Investing


As with just about every other aspect of life, the process of investing money has been radically transformed by technology. In the past, it took constant vigilance and daily, even hourly maintenance to ensure that you as an investor could spot the best trading opportunities. In much the same manner, you also had to always be aware if one of your assets was in trouble and needed to be sold off before too much damage could be done.

In the world of apps that can do all the trading for you and algorithms that tell you when to execute those trades on what specific stocks or other financial instruments, the human element of investing is often reduced to simply deciding what technology to choose. After that, you can sit back and watch it all unfold. But the best trading methods are those which combine the human element with the technological advances that are available to you.

It’s important to understand the stop order definition so that you can instruct whoever or whatever is doing the trading for you to know exactly when to make a move. It also helps you set limits to protect against big losses. Here are some of the ways you can use your gut instinct and still let technology help you out.

Use Technology As A Monitor

The idea of keeping yourself in the investing game with whatever savvy you might have acquired for trading is understandable. But it’s silly to try and keep up with technology in terms of amassing all the information for you. There is simply no way for a single human to keep up with all the information available at one time, in terms of trading data and more complicated mathematical figures, such as moving averages, related to investing. Let the computer do the data gathering and then you can analyse it after it’s all collected.

Fill In The Knowledge Gaps

Although algorithms for trading become more advanced all the time, they are largely concerned with the cold, hard numbers attached to investment assets. What they have a hard time with is processing real-world information that humans might be better-suited to analyze. For instance, if you read news about a pending merger or hear bad information related to a company’s stock, you might be able to make moves before the numbers can reflect the events. So you shouldn’t just set your algorithms and forget them. Use your real-world advantage as a compliment.

Common Sense Still Prevails

Just because the methods of trading and the ability to process information have been transformed by technology, it doesn’t mean that the tenets of investing have changed. Things like having a diversified portfolio and following market trends never go out of style. Your trading technology of choice might need a push in the right direction sometimes to include all of these staples of sound investing. That’s where your human knowledge comes into play.

So don’t be afraid of technology when it comes to investing your money. But don’t rely on it solely either; combine your know-how with the new world of trading for the best possible results.

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The passion for technology has never failed to fascinate in every stage of Karthik’s life and it continues. The interest is not just in what it can do for Karthik, instead of how he can contribute to the changing society. Starting from a young age, he has always been interested in technology. His work has appeared in The Huffington Post and Socialnomics.