Today, we will be discussing why using data is a huge advantage for traders. In a world where it is increasingly easy to find and track data, it is also increasingly difficult to filter through the massive quantities of information out there. There is an immense amount of figures out there from both credible and unreliable sources. In this article, we will discuss what types of data to access and how it can become your best tool for trading and investing.
Analytical traders that utilize data are more likely to be informed, make proactive choices, and notice trends. They are also less likely to let their emotions govern their trading patterns – limiting the amount of time they make quick, rash, and uninformed decisions that can result in a loss. Analyzing data and looking at the facts can help investors make better decisions and even boost confidence by giving traders peace of mind through informed decision-making.
Data for trading and investing can come from a variety of sources. For stocks and other similar investing methods, information can be found directly from the company that you are considering investing in. Public companies are required to share information with their shareholders – including financial information, notification of major organizational changes, and so on. Don’t be shy! If you are already a shareholder, attend shareholder meetings and make your voice heard. Don’t be a victim of diffusion of responsibility. Your investment portfolio is your property and it is your right to be informed. Even if you are not a shareholder yet and are simply considering investing, it is likely that you will still have access to an abundance of data online. Visit a company or organization’s website to learn about what they do and how they are performing. Look for key markers of success from other case studies as well as points that may be a cause for concern.
Be sure to not only gather data and information from the first sources. Secondary sources, also referred to as alternative data, can provide a great insight into performance and trends as well. Experts from the Wall Street Journal and financial analytics organizations suggest that alternative data from creditable sources outside of the individual organization can play a key role in maintaining successful investments. Check out organizational credit reports (such as the ICE BofAML US Corporate BBB Option-Adjusted Spread), investigations by the regulatory organizations, legal allegations, consumer activity metrics (from sources such as IHS Markit), and more to help analyze liabilities that a potential investment may have. Try your best to be proactive rather than reactive – as this is key to not losing your capital in a market or stock valuation shift.
If you can’t be proactive, don’t panic. Check your emotions at the door and use the data to make decisions. History often displays patterns or cycles that can be followed. Avoid panic-selling, as this will lead to capital loss at every momentary dip in the market. These seemingly small losses will add up and create a cycle of loss. Take a deep breath and look into other sources for data. Analyzing data from market, economic, and industry reports can be a goldmine for helping determine patterns. Sources such as The Wall Street Journal econcomic reports, government agency reports, and IBIS World (an industry analysis organization) can provide information that can act as hints, pattern predictors, and even forecasts.
But don’t just use data to analyze economic, market, and organizational patterns! Use data to analyze your investment and trading strategies. Here at FFR Trading, we use analytics to help us as we work to choose strategies that are more likely to be profitable for our clientele. Our 8-step certification process to choose our traders involves an in-depth look at data to ensure that we only choose strategies that have a history of success. We offer strategies for options, forex, index futures, and commodities. We pride ourselves on transparency and are happy to prove prospective clients will real account statements and data to help give them a better idea of what FFR Trading can offer. Reach out to one of our client care specialists by calling (800) 883-0524 or emailing us at [email protected] to get access to our data or discuss our strategy options.
You can also get access to market trends and information by tuning into our blog, Instagram, Facebook, or Twitter. We strive to help investors attain financial freedom by utilizing resources, taking the time to track and notice patterns, and making informed decisions. We wish each and every trader all the best with their investment endeavors! Remember to do your research and don’t rely on emotions!