Can Technology Help You Make Better Investment Decisions?

Advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) have ensured that everyone can become successful in long-term and short-term investing. 

Until now, we can’t even imagine our lives without the internet or technology. We scroll through social media apps every once in a while, use the technology in our cars to assist us in driving, and more. 

A late study showed that enterprises have made a decision to increase their spending on technology by 4.25%. This will significantly impact their investments, so it’s never a bad choice. 

Many investors are using technology to make much better and smarter decisions, but how is technology helping us do this? Let’s dive deeper in this article to find out. 

8 Ways technology is helping us improve our investment decisions 

1. It encourages communication

If you want to maximize profitability in investments, you’ll need to work with a proper financial advisor. This is even more important if you have lots of funds to deal with. 

One way to identify what you are getting most from your relationship is to ensure that you are always keeping in touch. This way, you’ll stay updated with what’s happening in the market and your portfolio. 

Nevertheless, the best thing you can do is always to ask your financial advisors which social media channels they use for communication. 

In today’s fast-paced marketplace, close communication is the key to profitability and not losing investment opportunities. 

2. Cloud-based software to the rescue

Cloud-based software is an excellent technological innovation that improves our investment decisions. It helps you manage the operational needs of any business you own into one single program. For example, you will use golf management software if you invest in a golf course. 

Upon your purchase, it’s quite common that you need to handle all the paperwork and the necessary permits for serving food and alcohol. The golf management software allows you to manage the following operations: 

  • Customer service 
  • Daily operations 
  • Memberships 
  • Staffing 
  • Maintenance and more 

The real question is, how exactly will you make money from a golf course? The returns are different whether you own a private or public golf course. It has many factors, such as analyzing which products will sell more and which will sell less. 

Moreover, lessons are an excellent way of generating extra revenue as you bring in new golfers and grow the game. The professionals you are going to hire don’t only need to have a deep understanding of the sport but amazing teaching skills too. 

Many factors impact an investment. We took an example as if you invested in a golf course, but you can always read the golf course buyer’s guide to learn more about your investment and whether it’s worth it in the long term. 

3. It offers data security 

Nowadays, most financial transactions are performed online, making investments so good. However, investing online does come with its own risks. Those are attacks by hackers and many other security breaches that are made, which may lead to financial losses if you don’t properly protect yourself.

As always, you need to be careful and keep your data safe. Consider using biometric verifications or hard tokens to secure your transactions further. 

However, always remember the basics and use secure password managers to keep your sensitive data safe and ensure your software is updated, reducing intrusion risks. 

4. You can use financial planning software 

When investing, there’s nothing better than to consider formulating a portfolio and being concerned about your cash-flow situation. 

However, if you don’t have much knowledge about this, you’ll find it more challenging to monitor your stocks and all the other investments you made that might affect your portfolio. 

Financial planning software allows you to access all the budget tools and other important features on your desktop and phone. 

What are some financial-planning software you can consider using? Here are a few we recommend: 

  • MoneyGuidepro
  • eMoney Pro
  • RightCapital
  • eMoney Plus 
  • Orion Financial Planning

5. It helps you act big 

Sometimes, there are beliefs that smaller shops won’t be able to encounter enterprise-level technology. However, many tools target small mid-size clients, especially in data management. 

Therefore, keep up with the software and other technologies available for smaller businesses. You are never too small to act big, especially with the help of technology. 

6. It gives you real-time awareness

Before you conclude, you have to be aware of where opportunities exist. With lots of information being shared nowadays, it’s easy to lose track while gathering new levels of information. Sometimes, you may miss out on major updates impacting your investment portfolio. 

You can use news-aggregation apps that use AI to track headlines that sync with your interests. Machine learning (ML) has come a long way. It allows you to automatically identify all the opportunities without spending too much time on the newspaper or the internet. 

Technological innovations have also come a long way in revolutionizing our investment portfolios, which will completely change how we do business in the upcoming years. 

Nowadays, plenty of investment tools help you stay ahead of the curve and reward your investment strategy. 

7. Has impacted property investments 

Property investments are the new profitable areas for individuals and corporations to invest in. In addition, new technology makes it even better and will allow higher profits to be made with greater precision. 

With the power of AI and by optimizing big data, property investors can effectively spot new trends like where properties are demanded the most and needed. In other words, they are making your investment decisions more secure. 

Data systems allow developers and investors to understand the market in each detail possible. For example, they identify where people relocate, office spaces, utilities, how prices fluctuate and more. All of this information in the market provides greater security when investing. 

Most Peer-to-peer platforms (P2P) allow investors to make the most out of their investments. As a result, these platforms are making it easier to get a loan and secure the necessary finances for all investors who need it the most. 

This advancement in technology allows investors to use their assets and make the most out of their investments, speeding up the decision-making process. 

8. Helps with stocks and bonds 

The financial world has had a huge technological advancement, which has been the development of Robo-advisors. This has allowed all investors to analyze all information before making a decision. 

Platforms have considered this information and focused on providing customers full access and transparency to their investments. 

While Robo-advisers have advanced quite a bit, they directly influence investors’ decisions. Therefore, high-risk investments become more secure and safe.

Sometimes, technology is discussed in its earlier stages, but its potential on the market is large. As we enter the AI and ML era, investment technology becomes more effective. 

Whether you are investing through blockchains or Big Data, investors are taking complete control of their assets and making better decisions. Investments always have a risk associated with them, but using the right technology is what reduces the risk.

Does technology help new investors or is it best only for experienced investors? 

When we talk about technology, we get the first impression that it’ll only be good for experienced investors or new ones. 

However, this is entirely untrue. Whether you are a new investor or a seasonal/experienced one, it doesn’t make a huge difference. You can be as experienced as you want, but having extra tools can significantly affect your decision. 

After all, you can’t ever really know enough about technology unless you have used it. For example, you would never know the feeling of driving an electric car if you never did so, right?

This is the same case with investing. You can’t know how much technology impacts you unless you actually use it in your investments. 

Lately, many hedge funds use technology to manage their funds and are doing better than the human-driven hedge funds. 

Technology is creating a new investment world

Each year, new tools and platforms are available for your investment portfolio. They are completely changing the way we conduct investments and affecting the way we make final decisions on our investments. 

Whether you are a seasonal or a new investor, technology is making things much easier for you. The days where you have to analyze the market forever are over and now, it’s all about making your investment decision easier to make. 

Technology has come a long way and one day, all of these hard decisions we have to make when investing might only take a few seconds. 

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