Investors increasingly likely to go it alone
The concept of investing money into stocks or other assets is nothing new. It is something that people around the globe have been doing for generations. The principle of trying to grow personal wealth at a faster rate than a standard bank account has remained. Still, the tactics used to make this happen have evolved. The days of relying on brokers are far from over, but investors are now more likely than ever to go it alone.
There are several proposed reasons why people are now taking it upon themselves to manage their personal investments. Firstly, it is suggested that only one-in-five investors can be considered a success. A lot of experienced investors would rather trust their instincts than allow a ‘professional’ to manage their assets. Note least because they know that there is an 80% chance of failure.
Both new and experienced personal investors can now make data-driven decisions with ease. The use of algorithmic trading strategies instantly put traders in full control, removing a lot of the guesswork. While there is no scientific formula to predict the future, graphical representations can help users spot trends. Moreover, several trading platforms allow members to follow popular traders. Again, the ability to see past statistical data gives investors far greater confidence than blindly trusting a broker.
The growing number of trading platforms is a big reason for the shift towards personal investment management. Accessibility has increased beyond anything people could have imagined 20 years ago. Aside from being able to track trades in real-time via desktop browsers, there are now dozens of apps available. They allow users to manage assets and digital wallets in one place. Furthermore, many of those offer individual traders the chance to trade stocks and shares with small levels of capital. This has removed the barrier that previously stopped small investors.
Increased accessibility has enabled a growing number of traders to use individual trades. This is in favor of joining hedge funds or syndicates. Moreover, it has opened the door to an array of investment opportunities that would have been unavailable in yesteryear. It could mean backing small companies that make a difference, including tech firms. Or it could result in buying stocks in something that you feel passionate about. In today’s climate, investments can even include NFTs or physical products like trading cards. People are far less restricted, and their increased interest can give them a stronger platform.
When working in niche areas, people are more likely to follow their path than use an expert. This is especially true when they feel that their insights can lead to quicker asset growth. In an era where people are desperate to see quick results in virtually all aspects of life, personal trading is ideal too. Day traders can look to buy the dip or use other techniques to earn money in minutes. The days of sitting patiently and HODLing assets for months and years are no longer around. It’s still an option but is far from a necessity.
Finally, it should be noted that people have been bored and at home during the pandemic. The opportunities to learn new skills or educate themselves about new topics have been greater than ever. Unsurprisingly, the chance to grow personal wealth is one that has attracted millions.