How do you invest money these days?
Let’s face it: Investing money has been easier in days when you still got a reasonable interest on your capital. Nowadays, it requires more effort and higher risks to receive a satisfying return on your investments.
Retail banks suck
The advisor of your local bank cannot help you anymore — they’re old-fashioned people selling you old-fashioned stuff. To earn money, they have to sell you their products to receive a good margin and hence you end up paying their fees, thereby reducing your chances of a profit. Given they care for your profit at all and not just theirs.
So it is up to you to take over control of your capital’s destiny. One of the remaining resorts for acceptable returns is the stock market. Because retail banks suck, you get an online broker account.
Online Brokers suck, too
But the online broker world is not perfect either: Now you are in control, but also in charge. Which stocks to buy? When? For how much? And at which cost (fee structures and order costs depend on size of order, stock exchange and often other factors)? It takes considerable effort to find adequate answers to these questions.
Besides: Don’t you have a regular job to earn all that money to invest? You just want a quick solution to invest your money in companies or markets you believe in and then some kind of monitoring and controlling how those decisions develop.
When we came to that point, we asked ourselves: How would a real solution to this problem look like? We therefore drafted a platform to invest our money which would help us to identify exciting investment opportunities more easily. Using it, we would be able to compare shares transparently by their fundamental characteristics, based on our preferences. By defining selection filters and receiving alerts when new stock candidates match our search criteria, we would be ahead of new investment opportunities. We could backtest how our selection criteria would have performed in past periods. The platform would then execute our orders and monitor the portfolio’s performance, keeping us informed about the quality of our decisions and recommend actions (like buy/sell) when necessary.
The advantages of such a solution would be compelling:
- You do not have to spend hours looking for opportunities to invest and calculating comparison metrics for a large amount of shares.
- Once you decided on an investment strategy, the system screens the market for new opportunities that match your criteria, so you do not need to do it manually.
- You have transparency of chances and risks through backtesting and automated monitoring.
- Emotions of the moment often interfere with well-engineered long-term investment strategies. The use of such a portfolio-management system which would work on a defined set of rules helps to overcome short-term doubts for long-term benefits.
- Based on your preferences, the system will recommend actions to support quick decisions.
What do you think? How do you solve the problem of low interest?