no not algo trading; sorry if my post was unclear. To clarify, by long term investors, I don’t necessarily mean long term investments. And when I say traders, I really mean day traders.
I am thinking of the retail long term investor who is stepping outside the safety of mutual funds; looking to embark on their quest to generate outsized returns by direct exposure to stocks. This is what I refer to as the modern retail hobbyist investor.
My anecdotal observation is that there is a large section of such people who participate in the market without really knowing what to do; and are turn away when things go south.
They could use better tooling to help them with –
- risks to consider while buying something.
- when to consider selling something they hold; profit taking opportunities.
- prompts to consider rebalancing. e.g. overweight on smallcaps etc…
To be able to build any form of this that will scrutinise trades and decisions with information; will require context on an investors holdings; this means apis. This appears to be in conflict with algo trading concerns.
Maybe there is a space for a conversation on opening up api’s in a way that doesn’t also let algo trading in.
Why algos are required for above, those 3 comes under risk management I believe. Even manually one act on them.