Investors have more access to the market than ever. Most importantly, you can access the market from the perspective you want more easily than ever. If you want to be a high-frequency trader, you can get automated tools. If you want to invest in fundamentals, you can easily obtain real-time news feeds and tools to analyze those feeds for you.
So why isn’t every investor a millionaire?
As with anything else in life, ease of access does not equal ease of use. Can you solve poverty and war just because you have a 24-hour global news feed coming through your cable or internet connection?
In the same way, a trading app does not make you a smarter trader.
What Trading Apps Do
New trading tech provides the market as a whole with more opportunities. Even those who don’t buy into the tech benefit from it. For instance, those who own Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA) and other “expensive” stocks watched shares skyrocket after the widespread implementation of fractional shares on trading platforms. New investors no longer had to pay $2,000 to invest in the company — they could invest with only $200 or $500. The general effect was the same as a stock split, but the company didn’t have to actually split the stock.
Let’s say your news feed gave you a heads up about fractional share technology. Would you know which stocks to buy and why?
Moreover, would you have the wherewithal to hold those stocks until the effects could actually be seen? No trading app can automatically factor in the lag between a market shock and its effect. You can backtest similar situations but no app can predict the future or execute those trades in the middle of that uncertainty right before your finger hits the trade button.
In the stock market, you play probabilities. Regardless of the technical function, look for trading apps to do one thing and one thing only — provide more certainty than you could achieve on your own.
What Makes A Smarter Trader?
Winners in the stock market combine innovation with an application to make a profit. The first great speculator, Jacob Little, earned the equivalent of billions today from engaging in day trading before day trading existed. Warren Buffett bought GEICO way before the lizard/salamander marketing campaign. Each of these famed investors had the latest version of trading tech at their individual disposal. The difference between Little, Buffett and the rest was the willingness to apply the results of innovation to the market.
Buffett made the P/E multiple famous. Before him, investors thought much less of pricing future earnings into a stock through a forward multiple. After him, investors realized they had to identify successful companies early through their processes to make the real money. The math around stock pricing became much more sophisticated.
Both of these investors did nothing more than apply the freely available information of their day to their executions. They were both also quite unafraid of failure: Little lost his fortune multiple times and Buffett has no problem selling airlines at the “bottom” even as the market calls him old and washed up.
Do Your Homework
No matter how sophisticated your trading tech, following the herd waiting on email breakout alerts is just begging to give your money away. Trying to swing trade off of the daily news cycle is basically gambling. The best way to ensure a proper chance of success is to focus your efforts on proper market research.
Yewno|Edge helps you conduct investment research due diligence more efficiently and expansively. If you want to quickly find companies that have recently received patents, you no longer have to spend hours digging — Yewno|Edge brings this information to the forefront. You can even read the patent directly from the new Document Search feature.
Even better, Yewno|Edge can help you more easily transition this information into knowledge. Having the edge means cutting through the noise in our world of info overload, getting straight to the data that affects market sentiment. With Yewno, you not only get the newsfeed, but also the hidden trends in the newsfeed that help you stay ahead of the game.
Drill down more quickly into profitable ideas through concept searches, which add an element of strategy to traditional keyword searches. Yewno|Edge gives you the ability to talk to your AI like a team of analysts rather than a data compiler. Your strategies are no longer lost in translation as your search topics are received — not with Yewno|Edge.
Your Trading Intelligence
Every trading app has the potential to increase your trading intelligence. Those apps give everyone else that same potential. Your job is to use your tools in innovative ways to put you ahead of market thinking.
Sure, you can read the news, thumb through earnings reports and pay attention to overall market trends. If you really want to know your stuff, Yewno uses AI to put you ahead of the curve. Your AI can’t hit the execute button at the right time for you. But it can clue you into patterns that you may have otherwise missed. It can aggregate investor sentiment from a wider range of articles than you could ever manually read. It can help you filter through the noise of press releases and opinion papers and consider only the hard facts from reputable sources.
Not everyone with a paintbrush can paint the Sistine Chapel. Look at your trading tools for the enhancements they are. The real tech is where it has always been — between your ears.
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