An investment advisor looks for a safe investment for his clients because that is his (or hers’) fiduciary responsibility. The same should be true for all of us, all independent investors. But safe investing doesn’t have to mean you can’t go after big gains. It just means follow prudent policies, safe investing principles.
Many investment advisors are affiliated with national companies and locked into those national company’s investment software and frequently the recommendations and trading limitations placed by the national companies.
An independent investment advisor can use or supplement his approach to finding the best investments for his clients by using independent or third-party investment software.
What are some of the things to look for?
- Ability to construct a conservative investment strategy
- Ability to construct a moderate investment strategy
- Ability to even develop aggressive investment strategies
- Different ways to analyze the stock market
- Ability to manage your retirement account
The key to safe profitable investing for both investment advisors and private investors revolves around being able to create strategies using proven means of analysis that also answers the question of “how to diversify my investments”.
Independent third-party software enables an investment advisor or anyone to develop unique trading strategies for each client with features like:
- Relative strength momentum
- Alpha analysis
- Return analysis
- Moving average charts
- Equity curve indicators
- Variable sell signals
- Market exit – entrance signals
How each of the analysis methods and other aspects of the strategy are defined can define the strategy to meet the particular goals of a client whether it be conservative, moderate or aggressive.
The setup of a strategy can also be used to control the number of trades made for a client while also protecting him from market crashes or even market turbulence.
For example, a strategy based on an alpha analysis with a period of 90 trading days will results in substantially fewer trades than one based on 10 trading days. Yet, if an equity curve is incorporated as part of the strategy the client’s portfolio can still be protected from a declining market by issuing a Market Exit signal.
If the strategy is further augmented with charts, such as moving average and/or a full stochastic than any signals for both the viability of the strategy and the recommendations to purchase any particular ETF, fund or stock can be easily verified.
In other words, investment advisor software or personal investment software can enable anyone to meet their goals while providing flexibility and conserving time. The same approach can be followed by any private investor with their retirement software or personal investment software.