Objective:
The objective of this lesson is to equip learners with an understanding of how technological advancements are shaping and transforming investing skills. By the end of this lesson, learners will be able to leverage modern tools and platforms to make informed investment decisions, analyze market trends with sophisticated algorithms, and manage their investment portfolios with greater efficiency and precision.
Comprehensive Content Overview:
Investing skills in the modern era have been profoundly impacted by technological progress. From the use of algorithms and artificial intelligence in trading to the democratization of financial markets through online platforms, technology has made investing more accessible and data-driven. We will explore key areas such as algorithmic trading, robo-advisors, financial apps, and blockchain technology.
In-depth Explanations with Actionable Insights:
- Algorithmic Trading: Algorithmic trading involves using computer programs that follow a defined set of instructions for placing trades. The goal is to achieve efficiency and speed that is impossible for human traders. An example includes a program that is designed to buy 100 shares of a stock when its 50-day moving average goes above the 200-day moving average..
Date 50-day Moving Average 200-day Moving Average Action 2023-04-01 $150.00 $145.00 Buy 100 shares
- Robo-Advisors: Robo-advisors use algorithms to provide investment management with minimal human intervention. They can tailor investment strategies to an individual’s risk tolerance and investment goals. For example, Betterment is ...
