An investment advisor looks for safe investments for his clients because that is his or her fiduciary responsibility. The same should be true for you. Safe investing doesn’t have to mean you can’t go after big gains. It just means you follow prudent policies and safe investing principles.
Many investment advisors are affiliated with national companies and, therefore, are locked into those companies’ investment software. They also frequently use the recommendations and trading limitations championed by their 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.
The key to safe, profitable investing for both the investment advisor and private investors revolves around being able to create “strategies” using proven means of analysis that also answer the question of how to diversify investments.
Independent, third-party investment software enables an investment advisor to develop unique trading strategies for each client with features like:
Relative Strength Momentum (RSM)
Market Exit/Entrance Signals
Variable Sell Signals
Moving Average (MA) Charts
Equity Curve Indicators
How each of the analysis methods and other aspects of the strategy are defined can determine whether the strategy will meet the particular goals of the client regardless of whether he or she is a conservative, moderate, or an aggressive investor.
The setup of a strategy can also be used to control the number of trades made for a client while protecting him or her from market crashes or market turbulence (e.g. A strategy based on Alpha analysis with a period of 90 trading days will result 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.)
A strategy can be further augmented with charts, such as moving average and/or full stochastic. Then any signals that are issued regarding the viability or the strategy and the recommendations to purchase any particular ETF, mutual fund or stock can be easily verified. In other words, investment advisor software can help an advisor meet the goals of his or her clients while providing flexibility and conserving time.
This same approach can be followed by any private investor, as long as he or she uses a personal investment software program to invest safely – like an Investment Advisor.
Some of the things to look for when choosing investment software are its ability to:
Construct a conservative investment strategy
Use different ways to analyze the stock market
Construct a moderate investment strategy
Manage your retirement account
Develop an aggressive investment strategy
Dominick is the designer of the investment program Dynamic Investor Pro, an investment software used by individual investors and professional investment advisors for stocks, ETFs or mutual funds.