How Technology Can Improve Your Investment Decisions

Investment Decisions

Last Updated on February 21, 2022 by Team Experts

Investing in the market is one of the few ways to truly generate wealth. If you’ve tried working for all your money, it’s quite time-consuming. But, thanks to technology, investments are becoming more accessible. Here are a few ways you can use tech to be a better investor.

Pivot Level Indicators Make Timing the Market Much Easier

NinjaTrader pivot levels indicator is one of our favorite investing tools. By setting it up, it’ll monitor the market, constantly looking for signals. Once it detects a change, it notifies you right away. Then, you can decide whether to put some money into the market based on what it’s said.

If there’s a sudden momentum shift, it can signal a change in direction. For example, a bearish stock may be turning bullish if it has signaled a change. That’s when you’ll gain the most if you invest in it. Don’t let market changes pass you again. Instead, use this tool to see when they’ll happen before anyone else has a chance.

Modern Hardware Can Speed Up Your Trades

Of course, nothing makes a bigger difference than your hardware in the beginning. Most consumer computers don’t have enough processing power to keep up with the market. As soon as there’s an explosion of activity, lag becomes a problem.

Instead of relying on antiquated equipment, upgrade whatever you’re using. Buying a new computer would have a major impact on how you’re trading. When looking at the market, everything will be up-to-date once you’re on a new computer.

Algorithms Can Track Market Movements

There are plenty of algorithmic trading tools available on the internet. By using them, you can have trackers notify you when there’s movement in the market.

Once it has told you about them, deciding to jump in is up to you. Most of its recommendations use your risk assessments. That way, it never recommends something way outside your comfort zone.

Visualize Market Trends on a Single Screen

Did you know that a moving average can be a serious trade signal? If the long-term moving average drops below the short one, it’s a bearish indicator. The opposite is true if it rises above it.

However, trying to figure this out by hand is too cumbersome. A modern trading platform simplifies it, though. They’ve designed platforms with indicators labeled on the screen. So, you can see everything at a glance when you’re looking. By placing indicators on a single screen, staying informed becomes trivial.

We’ve also seen indicators track other metrics. For example, you can set them up to track an asset’s RSI. This is an indicator describing how strong its performance is. When it drops too low, it’s bearish for the asset. Once it rises, it’s a bullish indicator for it as well.

You can also monitor a stock’s MACD by tracking it on a computer. This is another indicator that can describe a stock’s price movement. If it’s converging, then it’s usually a natural indicator. When it’s diverging, it means something is about to happen.

Calculate the Spread in an Instant

The difference between selling volume and buying volume is crucial. If there are way more buyers, an asset’s prices will generally increase. Once sellers outnumber them, their price will go back down again.

How fast prices change depending on the relative difference between buyers and sellers. By using an algorithm to track this for you, it’s not hard to project something’s price. Once there are more buyers than sellers, it would be a great time to buy. More than likely, whatever you’ve invested will earn a great return at that point.

You can even set it up to notify you when something happens. So, if sellers start outnumbering buyers, you’ll know about it. Then, you can offload whatever you’ve bought before accruing any losses.

Automate Your Trades to Prevent Missed Opportunities

Finally, we’ve had tons of success using market orders after placing them online. Back in the day, you had to phone a broker if you wanted to make an investment. Now, you can invest in pretty much anything without leaving home.

They’ve also designed special orders to automate trades. For example, let’s say you’ve watched a stock for several weeks. You plan on buying in once it falls below a set price. So, you can set a market order to trigger once it hits that point. That way, you never miss something because price action happened after hours.

How to Use Technology to Improve Your Investments

Technology has massively transformed our way of life. Today, nearly everyone is connected to the internet in some way. Fortunately, you can use this tech to improve your investments, too. So, don’t be afraid to try new things and see how it impacts them.

Read more: Increase ROI on Technology Investments with Robust Digital Adoption

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She has over 7 years of experience writing about technology, education, digital marketing, general and business. Her experience in the tech industry (fieldengineer, wowtechub, techsprohub, techinfobeez) has taught her how to write engaging, informative content that makes complex issues accessible to a wide audience. Follow her on Linkedin

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